Institution: India's increase in gold import taxes will not suppress demand.

In a report by Charles Gave of Gavekal Research, he wrote that the increase in India's import tax on gold will not suppress local demand. He pointed out that this move weakened the value of the rupee against gold, and added that this will instead encourage locals to buy more gold as savings. Gave also said that the government needs to mobilize India's gold, but "those who have been storing gold for the long term will never give up gold unless they can get a good return." Gave suggested that bonds linked to gold may be a better way to support government financing through interest payments, while maintaining levels of gold.