Tuesday, October 28, 2025

Gold Serves as a Vital Store of Value in Coronavirus-Ravaged India

As many countries around the world are struggling to uphold their economies in face of the deadly coronavirus pandemic, India in particular is experiencing devastating financial consequences. In its attempt to mitigate the effects of the pandemic, the Indian government has left the economy in shambles. As a result, many Indians are unable to get credit from their banks, because the fear of defaults are imminent. So, many are resorting to gold as a means of securing loans.

Some Indian farmers are struggling to purchase seed and supplies for their crop season, and have no other choice but to resort to gold as a store of value since it’s nearly impossible to secure a loan through the bank otherwise. According to Reuters, India’s loan growth is declining significantly, especially during times of uncertainty like the coronavirus pandemic. Some analysts are projecting loan growth will fall to 0 or 1% by the end of 2020 as a result.

Unlike in Western countries, gold is a commodity popular among low income households in India, or those that live outside the tax system. Gold is considered a predominant store of value in the country, especially in its poorest regions, and accounts for two-thirds of India’s demand for gold.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Related News

Probe, Midland Release Joint Venture Exploration Update

Midland Exploration (TSXV: MD) and Probe Metals (TSXV: PRB) this morning announced that they have...

Tuesday, October 6, 2020, 08:45:49 AM

Karora: Haywood Reiterates Ratings After Three Year Guidance Announcement

On June 28th, Karora Resources Inc. (TSX: KRR) announced its three-year production guidance, whereby they...

Wednesday, June 30, 2021, 04:53:00 PM

Monterey Minerals Closes $1.2 Million First Tranche of Financing

Monterey Minerals (CSE: MREY) has closed the first tranche of the private placement announced earlier...

Thursday, July 9, 2020, 07:57:59 PM

Xander Resources Acquires Property In Fenelon Gold Camp

Xander Resources (TSXV: XND) has entered into a definitive agreement to acquire what is referred...

Thursday, May 21, 2020, 09:44:33 AM

Exploits Begins Turning Drills At Schooner Prospect

Exploits Discovery (CSE: NFLD) has mobilized for its 2021 drill program. The company this morning...

Thursday, May 27, 2021, 09:19:58 AM