Originally posted by Multiplier A key point being missed out is that the Government does not want gold sales to grow. So if jewellers find innovative ways to still sell more gold, the Govt will clamp down even harder. Any rightly so. A useless piece of shiny metal, which we wear on our body or store in our lockers, is scre*ing up the entire economy. I think it is a long time before gold imports become a small part of our total imports and has little impact on CAD. As of now, we import $ 55 billion (Rs 3,40,000 crore for impact purpose) of gold per year using hard earned dollars. I would even advocate that jewellers should require a licence before opening any more jewellery shops. I know you guys are thinking of 'back to licence raj' but it actually may be needed to significantly discourage the gold fad of our country. And gold jewellery sales constitutes a large part of Titan's sales. Cheers

Multiplier,

Were you ever an investor in Titan ? Just curious

Originally posted by shivkumar Agree with Multiplier entirely. Shelling out Rs 3,40,000 cr for importing gold is a criminal waste of foreign exchange. Everyone who buys gold or facilitates sale of gold in whatever form to the retail buyer should be treated as National Enemy Number One. Disclosure: no holding in Titan

Shivkumar,

It does seem like you too were the Enemy Number One at some point in time holding or even keeping Titan in "your watchlist". Suddenly your interest in Titan has come down due to gold import issues and the cad problem...where is that bullishness gone ? When did you become the Son of this country if I may ask ? Please enlighten.

Just to refresh your short memory, here are your posts on Titan. Though, it doesnt tell you were ever a holder of Titan, it does seem that you played along and were intending to buy provided the valuations were anything to go by.

http://www.theequitydesk.com/forum/search_results_posts.asp?SearchID=20130817002006&KW=&PN=34

http://www.theequitydesk.com/forum/search_results_posts.asp?SearchID=20130817002006&KW=&PN=38

http://www.theequitydesk.com/forum/search_results_posts.asp?SearchID=20130817002006&KW=&PN=70

http://www.theequitydesk.com/forum/search_results_posts.asp?SearchID=20130817002006&KW=&PN=71

http://www.theequitydesk.com/forum/forum_posts.asp?TID=1688&KW=&PID=112172#112172

http://www.theequitydesk.com/forum/search_results_posts.asp?SearchID=20130817002006&KW=&PN=89

http://www.theequitydesk.com/forum/search_results_posts.asp?SearchID=20130817002006&KW=&PN=92

http://www.theequitydesk.com/forum/forum_posts.asp?TID=1688&KW=&PID=108023#108023

http://www.theequitydesk.com/forum/search_results_posts.asp?SearchID=20130817003547&KW=Titan&PN=3

To illustrate my 'hate for gold' argument further:

Imagine a visitor from Mars who sees our people wearing the shiny and heavy metal on their body. We then tell him that our country is facing a severe shortage of dollars but we use Rs 3,40,000 crore of dollar equivalent each year to import the metal so that our people can wear it around their neck/on their wrist. I am quite sure he will feel we are a country of nuts.

Cheers

Edited by Multiplier - 17/Aug/2013 at 5:44pm

IMHO, buying gold can never be called criminal. This is the only way to protect yourself against general stupidity by govt. and central banks. If Indians are buying gold by truckload, there is something wrong with the currency. Nobody asks RBI why are they printing 3% of currency by way OMO every year. If that doesn't amount to playing with currency, what else would be. We keep a keen eye on what FED does in US but skip the sins committed by RBI which is printing and help finance horrible policies followed by UPA. This creates inflation and any sane person trying to protect himself should buy some gold. The figure of 3 lac+ Cr. for gold imports is highly manipulated figure. I came to know that gold is the best way to launder money and whenever any country faces crisis of confidence this is the most preferred way for money to flow out. Look at China where similar story is playing out but they have reserves to fight it but we don't and hence depreciation. UPA knows raising tax on gold imports to 30-40% would hurt their friends and families only.