November 20, 2016

"Brace For Economic Disruption" SocGen Sees "Sharp Rise In Gold" As India Plans Cap On Cash Holdings

India's 'de-monetization' scheme has caused chaos across the nation, and while SocGen says the government's plan may have some short-term success in curbing so-called 'black-money', investors should "brace for economic disruption" as Bloomberg reports the Indian government is considering a cap on cash holdings for individuals. As SocGen concludes, "people will now be more inclined to park their black income in gold rather than in currency."

Things are perhaps about to get worse, as Bloomberg reports, India is set to consider a cap on cash holdings for individuals...

  • Measure planned to prevent people from hoarding cash and generating income that could evade taxes, according to government officials with direct knowledge of the matter.
  •  Planned measures include limit on large cash withdrawals from bank, the officials said, asking not to be identified citing rules on speaking to media.
  •  Budget, due in February, may have steps to encourage use of checks, credit and debit cards.
  •  Purchase of gold jewelry said to be made more stringent to prevent switching of asset from cash.

Read more at http://www.zerohedge.com/news/2016-11-19/brace-economic-disruption-socgen-sees-sharp-rise-gold-india-plans-cap-cash-holdings

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