India sets an example for the whole world
Indians keep on buying more gold. The reason is simple: the government struggles to keep the country's economy afloat.
How does India face tax evasion and how is this related to gold? Where can gold be purchased for the protection of the capital?
Combating the shadow economy
CNN reports that in 2014 and 2015, the Indian economy received $100 billion less taxes than expected. That is why the government has decided to take strict measures to combat the shadow economy.
Bloomberg states that, firstly, the government has prohibited large banknotes in the country. But they can be changed for smaller ones until December 30th.
Secondly, from now on, gold shops have to collect data from the customers. Buyers have to show their ID-card before purchasing. The Indian Express informs that more than 600 vendors from 25 cities have already been informed about the new rule. If they ignore this rule, they get a fine.
“The people have chosen a government and they expect so much from it. In 2014 so many people voted to free the nation from corruption”
Narendra Modi, Prime Minister of India
How do Indians get rid of large banknotes?
Changing large banknotes is necessary. Some people change them in banks, but some others prefer to buy more gold.
The popularity of this precious metal in India is well-known. Nowadays, the demand has increased by 66% in the population. Official sources report that the residents of India own approximately 20,000 tons of gold.
It is all about trust
The purchase of gold has increased despite the price spike. Indians know that regardless of the economic situation, gold protects the economy.
Buying gold is a risk-free way of protecting the economy. But it is better when you can also conduct a stable business.
This is all possible with the Global InterGold Online Gold Shop. More information here.
