Worst form of tax.

"A recent Morgan Stanley report estimates our (Indians') private gold hoard at 35,000 tonnes - among the world's biggest. And it keeps growing," wrote Nilesh Shah. Why is it a problem? Because apparently it is "unproductive as it lies dormant in the parallel economy." If this gold is unearthed it will provide i. additional tax revenue to the government, ii. inject liquidity into the hands of businessmen, iii. strengthen RBI's balance sheet, and iv. trigger a sovereign rating upgrade. How to grab people's gold? RBI will buy 65% at market rate and 35% will be held for 29 years without any interest. At Independence in 1947, one dollar was equivalent to Rs 3.3 and was at Rs 32.43, 30 years back in 1995. (bookmyforex), while this morning one dollar buys Rs 89.58 (xe.com), which is almost half the value. So, Mr Shah is suggesting that the government grab our gold and return worthless paper after 30 years. Without interest. Indians have been buying gold for thousands of years. "Even the poorest people in India buy gold, saving a little each week to buy a gram at a time." BI. These are people who do not earn enough to pay income tax but pay GST when they buy gold ornaments (MMTC). To hold 35% of the value of their gold for 30 years without interest is extreme financial repression. "Gold protects against inflation and currency fluctuation," it can be used for borrowing money in an emergency and it stays in the family. Muthoot Finance. Gold is generally considered to be fungible and can be exchanged for money at any time (Investopedia), unlike investments in property and mutual funds. Shares can become worthless if the company goes bankrupt and only Rs 500,000 in bank deposits is insured (RBI). which would be equivalent to only $5,587 at today's exchange rate. "If gold were an 'irrational' investment, it should have led to divestments by central banks. Instead, advanced economies seem to be hoarding gold while emerging markets with superpower aspirations appear to be raising their gold stakes," wrote Pramit Bhattacharya. The Reserve Bank of India (RBI) transferred 64 tonnes of gold bullion back to India. "As of September-end, out of the total gold holdings of 880.8 tonnes, the RBI maintained 575.8 tonnes within India, whilst 290.3 tonnes remained in the custody of the Bank of England and Bank of International Settlements." TOI. Veteran market participant, Siddhartha Bhaiya "sounded a sharp warning on Indian equities, calling the current market a 'bubble of epic proportions' rather than a healthy bull phase." MC. If the market falls, mutual funds will also lose valuation. The government collects 51% of the net revenue as tax on Equity Arbitrage Finds and "Additionally, if you also include 27% paid by the other side of the trade (counterparty), the governments total share rises to around 78% (51%+27%) of the total returns generated," complained Mr Shah. He wants rich shareholders protected and loot the poor of their little gold savings. Male villagers in Bihar who were paid Rs 10,000 into their accounts before the assembly election are refusing to return the money, saying "First return our votes to get back money," in a clear proof of vote buying by the government. TOI. The government will love Mr Shah's scheme. Loot their gold and give handouts to the poor to get their votes. Hope the poor don't fall for it. Brazen robbery.