“India raised the import tax on gold to 6% from 4%, a senior finance ministry official said, as the world’s top gold buyer aimed to curb purchases and rein in its ballooning current account deficit.  India’s passion for gold, seen by many as a hedge against persistently high inflation, has contributed to a rise in its current account deficit, which reached an all-time high of 5.4 percent of GDP in the July-September quarter. The shortfall has increased India’s need for foreign capital inflows and evoked memories of the 1991 balance of payments crisis, when the central bank sent 47 tonnes of gold to Europe as collateral for a loan to avert a sovereign default.”

http://www.mineweb.com/mineweb/content/en/mineweb-fast-news?oid=173885&sn=Detail

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