India May Buy Gold From Citizens

Reuters reports that India is considering a plan to buy gold from citizens, in order to curb gold imports and to ease a plunging rupee.

As quoted in the market news:

India has the world’s third-largest current account deficit, which is approaching nearly $90 billion, driven in a large part by appetite for gold imports in the world’s biggest consumer of the metal. That has played a major role in driving the rupee to a record low.

With 31,000 tonnes of commercially available gold in the country – worth $1.4 trillion at current prices – diverting even a fraction of that to refiners would sate domestic demand for the metal. India imported 860 tonnes of gold in 2012.

Click here for the full Reuters article