I appreciate his unbiased views, purely on the experience and knowledge he has.....grt his humble ness and prompt ness...highly mature ,thx Subbarao...
Must understand the details to figure out what is likely to happen in future to be adequately prepared.dr rao ' explanation is par excellence and very articulate.thanks
about 4-5 minutes before the end of interview, Dr. Subba Rao mentions "Gold Appreciates...", in reality gold doesn't appreciate much in relation to other financial assets (Equities or even fixed income these days), it is the currency (rupee) that depreciates as a result of which, in rupee terms, the value of gold appreciates. If you look in dollar terms ,the value of gold at its lowest since start of this century in Apr 2001 was USD 468.19 per ounce and today (in Apr 2024) it is USD 2285 per ounce, that is an annualised growth of just 7.1% and that is assuming you bought at absolute lowest and sold at absolute highest, anything in between means you didn't even beat inflation. But because in these 23 years rupee depreciated gold gave 9-odd percent annualised return in rupee terms, that is still less than 10% CAGR in 23 years (precise 9.85% CAGR). And yet people are crazy about gold. 🤦🏼♂
Excellent presentation by Dr. Rao whom Modi government must include in the council of economic advisors, not just a bunch of YES people around Mr. Modi!
Don't underestimate Aravind Panagariya as Mr Modi's government is here and everything is possible but it will take time as we are dealing with global economics not only local .
Dr Rao seems to be so out of depth when he talks about gold. His comments are shallow because of the limited context of Fiat dollar regime. In times to come the Gold reserves of a country would be its real worth as dollar looses the global status and looses value. He may be right .. but in a limited paradigm.
