This Monday, prices of the yellow metal touched Rs.1 lakh per 10g for the first time in history, defying both math and magic. Findings of gold in Dakota’s Black Hills in 1874 had attracted hundreds of thousands of people from all parts of the world, recorded gold rush of the unemployed towards Wild West, Africa and Australia. Now, the trade wars, risk hedging and lack of confidence are pushing many young Chinese consumers rushing to buy gold (beating even our desi bhakts in the race) keeping the price rising for all.
Back in India, with increasing unemployment rates and layoffs, taking a gold loan to run over difficult periods is now appealing. There are a host of banks and NBFCs that offer loans with gold as a collateral to individual borrowers. Great times for fugitive jewellers like Mehul Choksi to file appeals even after details of their involvement in one of biggest bank frauds became public.
The government had sent request for the don’s extradition prior to arrest, a source with Enforcement Directorate told Reuters. Punjab National Bank (PNB), second largest state-run lender by assets, had announced that it had discovered alleged fraud worth $1.8 billion at a single branch in Mumbai, all other branches and banks continues have their own versions of fantasy ram rajya!
The bank had filed criminal complaints with investigative agencies against several entities including billionaire jeweller Nirav Modi, Choksi Sons, their uncles, aunties etc.. saying they had defrauded PNB. Police filed fraud charges against them in connection with suspected involvement in fraudulent transactions that led to huge losses for the bank.
The precious tycoons have denied any wrongdoing. Choksi ji said in a letter that the investigating agencies were acting with conspiracy minds and interfering with the course of justice. An appeal will be filed for release, on grounds that they are undergoing health treatments. Sir Nirav fled even before details of his alleged role in the case became public. He was arrested in UK and remains in custody there although he has lost one extradition appeal.
Modi ji grew up in Europe’s diamond polishing hub Antwerp, and used to visit overseas frequently, even before the financial scam was discovered. Diamond traders said Antwerp would have been an ideal place for taking such refuge breaks, preparing for the next Gold Rush.
So now, China’s Gen Z are rushing to buy gold beans, which are easy-to-acquire gold nuggets that weigh one gram and are stashed away as part of the rainy day funds. As per World Gold Council, global central banks are taking refuge in gold and may continue to add to the bullion boom in the coming years, thanks to mounting geopolitical risks, intensifying trade tensions, and surging demand from institutional and retail investors alike.