BMO’s Coxe Dreams of Baubles, Bangles, and More Gold Investment Choices

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...“But gold’s role in the intellectual and cultural history of India is a far more significant inducement to buy bangles than the current CPI growth rate. India is the biggest gold-consuming nation in the world, and its consumption has risen so strongly..."

While commodity stocks remain BMO Financial Group Global Portfolio Strategist Donald G.M. Coxe’s favorite equity asset class, he currently has gold baubles, bangles, and the golden mystique of India on his mind.

In his recently published analysis, “Baubles, Bangles & Needs,” Coxe said he began rethinking his long-held views on gold during a visit to India. “Driving through the rural villages of South Rajasthan, one of the economically poorest areas in North India, we were struck by seeing so many impoverished women wearing gold bangles.”

“Given that India has the highest inflation rate (6 %+) of any of the large economies, gold is a logical investment,” Coxe noted. “But gold’s role in the intellectual and cultural history of India is a far more significant inducement to buy bangles than the current CPI growth rate. India is the biggest gold-consuming nation in the world, and its consumption has risen so strongly that it more than matches central bank gold sales. As more and more Indians become even modestly wealthy, more and more of their saved rupees go to gold.”

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