Attention Economy


Monday, May 11, 2015

Temple Gold and Money


A fascinating debate [quote from the Washington Post article on the subject] is currently taking place in India on monetizing the vast gold holdings of Hindu temples:
“Wealthy Hindu temples such as this one are repositories for much of the $1 trillion worth of privately held gold in India — about 22,000 tons, according to an estimate from the World Gold Council. In 2011, one temple in south India was found to have more than $22 billion in gold hidden away in locked rooms rumored to be filled with snakes. Another has enough gold to rival the riches stashed at the Vatican, experts say.
But little of it is contributing to the Indian economy, and now Prime Minister Narendra Modi’s government is looking to mon­etize India’s vast hidden wealth. In coming weeks, the government plans to begin a program that will allow temples to deposit their gold into banks to earn interest and circulate in the economy, rather than sit idle in musty vaults. The gold, officials say, would be melted down and sold to jewelers.”