Is it fair to compare the events when P.C and PM told to stop buying gold?
2013:
Jun 2013, then finance minister P. Chidambaram was on camera, indicating people to buy less gold.
All sources, I could see is about gold, not about oil and other expenditures which drive economy. Gold is a non-productive asset.
Second, gold was down 30% in global markets compared to its 2012 price, which would have caused a rush to buy gold.
2026:
May 2026, PM on camera, advises people to buy less gold, oil, other foreign expenditures. Cites, global uncertainty especially middle-east.
But the conflict, started 2 months ago, people already forgot that INR was defended heavily by selling forex reserves in the past year and is in a gradual decline.
Now it is not only about the non-productive gold,but also about oil, which drives economies. Doesn't it hinder economic growth?
Gold is still up >40% on 1Y basis in global markets.
While I do agree that these actions help stabilize INR, is it failed policies masked under US-IRAN conflict? what do you think?