Austerity steals our shine

The festive season could correct this but, according to the World Gold Council, China has now overtaken India in gold sales and is now poised to become the world's top consumer of the precious yellow metal. The total demand in India fell by an astounding 83 per cent due to near-record prices and a bleak monsoon, whereas in China the demand is now six times more.

Of course, China's economy too is growing faster than ours, at an impressive 7.9 per cent. And so is its appetite for gold.

On the other hand, desi gold merchants have been placing strong buy orders in the local market with the ensuing marriage and festive season in mind.

Increased orders ahead of the festive season and strong global cues have resulted in a surge of gold prices. But the rise in prices to a new seven-month high may have watered down hopes of traders to win too many customers. After all, in India, austerity is the flavour of the season.

Protecting RBI's turf
RBI Governor D Subbarao set a precedent of sorts when he publicly disagreed with the finance ministry. The nation's money man from Mint Street veritably bristled at the idea of a super regulator, proposed by the finance ministry.

Subbarao's concern to protect RBI's turf places him at odds with the view currently prevailing in the ministry. Pranab babu apparently wants to set up a single regulator for the entire financial services sector along the lines of UK's Financial Services Authority (FSA).u00a0

Curiously, Subbarao, who is a member of the high level coordination committee (HLCC), was one of those who initially proposed restructuring the panel into a regulator. But now that the ministry has indicated it wants to go ahead, Subbarao is backing off. Dilli clearly is poised to get its way.

Widely regarded as India's Image Guru, Dilip Cherian is lobbyist, celebrity creator and tycoon watcher. He currently parties on a 24/7 schedule, and analyses Dilli.

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