Gold Certificates Issued in exchange of specified amounts of gold, these are tradable in the market in a deregulated economy. The central bank of the country fixes the price of the certificates daily in line with price of gold in the London Metal Exchange and the dollar rate against the local currency. Investors have an option to receive cash equivalent or gold when surrendering the certificates. The interest rate offered is usually low.
Government have modified the central ideal in various small ways to suit their requirements, sometimes in an attempt to unlock the country’s hidden gold, sometimes to mobilize black money (with the promise of no – questions – asked), and sometimes to meet a national emergency.
No comments:
Post a Comment