Larry Fink comments on how India’s affinity for gold has had minimal impact on its economy

Gold, often viewed as a valuable store of worth, fails to contribute to economic growth in the same manner as other investments. When funds are kept in banks or invested in properties, there is a multiplier effect that results in economic activity. In contrast, gold simply lies dormant in a safe without generating any economic growth.

In India, gold holds immense cultural significance and is widely utilized as a representation of wealth and prosperity. It is customary to purchase gold during weddings and festivals, and it is also viewed as a secure investment option. There are various methods to invest in gold, including purchasing jewelry, exchange-traded funds, and sovereign gold bond schemes.

Larry Fink, CEO of BlackRock, emphasized the role of capital markets in driving economic growth. He highlighted the impact of U.S. capital markets on the American economy as an example of how investment can lead to prosperity. Fink underscored that capitalism is a vital driver of economic development and financial freedom.

Although India has traditionally favored gold, recent record highs in gold prices have affected demand for the precious metal in the country. The Reserve Bank of India purchased 4.7 tons of gold in February, bringing its gold reserves to an all-time high. However, Kavita Chacko of the World Gold Council noted that demand for gold may not increase significantly in the near future due to upcoming general elections and close monitoring of gold and cash movements.

While gold remains popular in India, the country’s stock markets have experienced significant growth. Major institutional investors have shown confidence in Indian stocks, which have reached record highs multiple times this year

By Samantha Johnson

As a content writer at, I craft engaging and informative articles that aim to captivate readers and provide them with valuable insights. With a background in journalism and a passion for storytelling, I thoroughly enjoy delving into diverse topics, conducting research, and producing compelling content that resonates with our audience. From breaking news pieces to in-depth features, I strive to deliver content that is both accurate and engaging, constantly seeking to bring fresh perspectives to our readers. Collaborating with a talented team of editors and journalists, I am committed to maintaining the high standards of journalism upheld by our publication.

Leave a Reply