India going for Gold Against Dollar

You know that a country wants to either put a handsome reserve of US Dollar or gold. Indian decision makers recently decided that they had enough dollar and they should get more gold. Well, India recently purchased 200 tonnes of gold from IMF. This matter has helped to push the price of this commodity up in US market. I am not shocked with this matter because dollar has been instable in the last 2 years. Economic recession made the currency weak. So, big countries like China and India are looking for alternatives. You can build up a reserve of Euro but again Euro has perhaps the same problem of being not stable just like the US dollar. So, Indian decision makers thought that gold was the best thing they should go for.

It is perhaps an indication that the dollar is losing its value as the prime currency. However, whether you like it or not, there is no other alternative currency at this moment that can compete against it.

I just want to mention here that Chinese decision makers are also contemplating on the idea of diversifying their huge forex reserve.