From Notebandi to Goldbandi

Asad Dossani

If you need to stash away your 'black money', how would you do it? Cash is an obvious choice. At least, it would have been prior to 8 November. In the current environment, you need something different. It needs to be anonymous like cash. It needs to be accepted by others as currency. And if its shiny, that's an added bonus...

Gold. The longest lasting currency mankind has ever known. Moving your money in gold is easier than it seems. For example, if you pass through airport customs carrying a large quantity of cash, you'll be stopped. But if you're wearing expensive gold jewelry, you'll be just fine.

While this is great news for those with money to hide, it's bad news for governments trying to catch them. But do not worry. Here's how we can fix this:

Allow me to introduce: Demonitisation 2.0: Goldbandi...

    From midnight tonight, you may not transfer your gold to anyone for any reason. And over the next thirty days, all physical gold above a certain amount must be deposited in government approved vaults. Those with small amounts of gold have no reason to fear, and housewives who received jewelry at the time of their marriage get a special exemption.

    But anyone with large amounts of gold must declare where they got it from, why they are holding it, and whether they paid taxes on the income used to purchase it.

This is crazy, right? It would never happen. Perhaps. But then, no one could fathom the ban on 500 and 1,000 rupee notes before it occurred.

The truth is, there are good reasons to stop people from buying and holding gold. First of course is black money. But beyond that, there are benefits. Gold is a major contributor to the current account deficit. Reducing gold imports would reduce that deficit. It would increase the value of the rupee.

Halfway into Goldbandi, it turns out that we haven't found much black money. Maybe most of it was actually in property or something else. We don't really know. So we make another announcement:

    This is more than just black money. This is about transitioning to a goldless society. One in which current account deficits are a thing of the past. One in which the rupee, not the dollar, is the most valuable currency...

I'll stop there. But this has very real implications for gold in 2017. In fact, gold is about to experience a major market event. The fundamentals at home and abroad are shifting in ways we've never experienced.

More on this next time. But before I go, let me ask you this: Are you planning to trade in 2017? What does your 2017 trading strategy look like? Is it ready for the new market environment?

My colleague, Apurva Sheth, is holding a special training session today at 5pm. He's going to reveal his top 2017 trading strategy. If you plan to trade this year, you won't want to miss it.

The last time he hosted a training session, over 7,000 signed up to attend...I expect even more this time around, so I strongly recommend you to Reserve Your Virtual Seat NOW!

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3 Responses to "From Notebandi to Goldbandi"
RS Rathore
07 Jan, 2017
Hi, Vipul Jasani has shared the facts and mindset of common man of this country. Govt. has no doubt succeeded in creating the fear environment among people. All I can say is that from Notebandi we are going to see in ensuing time GDP on downside by nearly 2%. I don't think in the existing scenario Gold could be the safe heaven for the investors. Only the Govt can concretely forecast about the Goldbandi's impact on the yellow metal. Why at all should we stress our brains, for we are no history creators. In the long run ..... to what extent the Notebandi & much talked about Goldbandi will have salutary effect on our economy, it's too early to comment anything right now. RS RathoreLike 
06 Jan, 2017
I agree with Vipul. Indian govt is not serious to block black money. It was just eye washing. I had expected that post this demonetization, govt will have atleast 4-5 L Crs in its kitty. It will catch all corrupt politicians, bureaucrats, etc. No action against benami properties. Now this cash economy is another eye washing. RBI could not print such a huge amount of notes in such a sort time, so it was make noise of cashless economy. By Next month, once 90% notes will be back in country, it will forget all this cashless, corruption, black money.. They are make fool to common man.Like 
Vipul Jasani
06 Jan, 2017
Hi, I personally believe that "GOLDBANDI" will make this Govt. out of power in election after GOLDBANDI. I am in sales function in my company and in sales for more than decade. I tell you with confidence that Gold is such an integral part of Indian society that I have seen people not spending on food, yes I repeat not spending on food and that saved money used for buying Gold!!. People who does not even fall under Income tax limit (truly), they also have such huge qty of Gold with them that you can not imagine. And it may not be possible for them to explain to authority. This step may backfire. Already people are upset with improper NOTEBANDI as other black money generators are still on like Political fund, Property, Beaurocracy, Tax authorities and above all Bank officials as we have seen them after NOTEBANDI!!! Nothing happens to Bank defaulters and scamsters. When NOTEBANDI was declared, people like me were very happy. But the way it was implemented and no further steps are taken on Benami property, making Govt officials accountable, increase transparency while dealing with those having powers, stopping incentives to rich etc. It seems that Govt wants to create fear environment and also wants to make each citizen an accountant and tax expert!!! and on other hand they talk about skill India!! India is such country and may be the only in world where officials can make any person criminal, tax evader without having any logic or proof and then onus is on that person to prove himself innocent!!!! and nothing happens to that official. (Real incident happened and it was in newspaper) anyway there are lot of negative incidence happens and reading in news paper and also it exposes mindset of our leaders for ex. recent incidence in Bengaluru. I am not negative as I am successful in my personal life with positive approach but reality prevents me to be hopeful for this country at least in near future. Let us see how further steps are being taken by Govt. Like (1)
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