Gold is no inflation hedge, says RBI deputy


Gold investments are neither a hedge against inflation nor a safe asset, according to Kamalesh Chandra Chakrabarty, a Reserve Bank of India deputy governor.

The gold price, Chakrabarty said yesterday (January 21), has appreciated "far in excess" of the inflation rate, and as such cannot be characterised as a hedge.

Rather, he said, it should be considered a speculation against inflation, as greater returns are accompanied by greater risks.

"The significantly higher returns offered by gold in the

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