https://www.fortuneindia.com/macro/gold-rush-spikes-create-magical-wealth-effect-in-india/114952
If India went to war let's say Pakistan (conventional, no nukes) and had a protracted sanction like Russia imposed on them, could they confiscate the gold and sell it to keep the war machine running?
2Trillion is a huge amount of money, even if they are able to extract 10% of it in exchange of sovereign Bonds, that's still 200B worth of internationally exchangeable reserve. That's huge.
My question is: how difficult would it be to convince the populace to give up their gold, considering many people see it as their life's savings in some tangible form.
@Sasanka_of_Gauda is the only accredited indian i know so I'll ping him
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Before the Pearl Harbor attack, the US froze all Japanese-owned assets on the stock exchanges, stopped all transactions to the country. The sanctions were so thorough that the Yen post over 80% of its value overnight.
If India has gold futures or stocks or options, they'll be entirely frozen. If they have actual physical gold, they'd have to physically carry it out of the country and trade with it, but gold isn't exactly a currency. They'd have to sell it at Chinese pawn shops for 20% of its metal value or find an actual place that deals in gold.
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I've heard it's pretty traditional to give Indian women gold, because jewelry is personal property, not communal. So it's helps them with shitty husbands and in case of divorce.
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Britbongs rubbing their clitties at this hoping to add it to the £45 trillion they stole during the empire days.
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In the event of a hot war it would be pretty easy to convince people to sell 10% of that total in order to win.
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Could you even move that much gold without people noticing? I imagine prices would crash too if we just stopped importing, we're the second largest market.
But for confiscating property, I doubt it would work. Maybe some ideologues but average person wouldn't be interested in exchanging hard currency for bank notes in a situation of hyper inflation(which any energy blockade of India will produce). They also have no records about who owns what. They probably could seize a decent amount if they raided bank lockers cause that's where most middle class people keep their's. But that'd be just blatant theft.
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Yeah i read the three largest gold insurance companies in India combined have larger gold reserves than like 90% of countries including big shots like Canada, Brazil, South Korea, Australia etc. which is where my question originated
So stopping import would be a major issue.
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they are in the process by providing gold loans
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India already has a guerilla problem. Imagine how many people would join up if the government started confiscating your personal property, especially if it has religious significance or sentimental value (wedding jewlery, gifts from dead relatives etc) on top of the obvious monetary value.
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Snapshots:
ghostarchive.org
archive.org
archive.ph (click to archive)
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