Union Govt must check forward trading of metals

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SUBHASH CHANDRA AGRAWAL

02 June, 2010

It refers to steep rise in gold prices. Union government should take steps to prevent abnormal jerks in prices of yellow metal by banning forward trading of metals.

IT REFERS to steep rise in gold prices. Union government should take steps to prevent abnormal jerks in prices of yellow metal by banning forward trading of metals. Since India is the biggest consumer of gold, its demand in India also has a big effect on its international prices though it is also regulated by other factors like oil-prices. Idea should be to keep gold in reach of commoners for meeting emergencies in life.

Since most investment in gold is made out of black money, sincere steps should be taken to transform currency-circulation in banking transactions so that surplus currency may be ordinary ‘paper’ for all practical purposes. India should follow sensible advanced countries by discontinuing circulation of higher-denomination notes of rupees five hundred and above because such currency is used as black money to buy gold.

All sale-purchases exceeding say Rs 20000, even though payment may be made in parts, must be through banks. In case of cash-payments, currency-tax @ 30-percent may be imposed. All expenses exceeding Rs 1000 must be allowed when made through cheques/ drafts. Payments of essential services like water, telephone, electricity and municipal taxes for bills exceeding Rs 1000 must be by cheques/ drafts only. Drafts/ Pay-Orders/ Traveller-cheques must carry names and address/ account-numbers of purchasers with reduced validity-period of say 45 days to check their misuse as ‘benami’ drafts for carriers of black money.