Soaring gold prices-A cause of concern

The article talks about the increase in the price of gold at an alarming rate. Though the price rise in gold is a cause of concern world over, especially in India the demand for this yellow metal is constantly on the rise irrespective of its price. The government is forced to import huge quantities of gold to cope with the domestic demand as the production of the same is limited in India. The article tries to focus on the futile expenditure we are making in buying gold keeping other priorities aside. The article also throws light on how the price of gold is fixed in the international bullion market. It makes a comparison between the per capita incomes and their demand for gold in various countries with India. The article also tries to identify the reasons for the rise in the price of gold and tried to suggest some interventions from the government in order to address this serious issue.