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India’s RBI Pushes Gold and Silver Monetization: Boon or Bust?

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  The Reserve Bank of India (RBI) has introduced regulatory amendments aimed at making loans against gold and silver collateral more accessible, particularly for working capital needs in the jewelry sector. These changes, effective from October 1, 2025, seek to liberalize lending practices, harmonize rules across the industry, and provide banks with greater operational flexibility while maintaining financial stability. The updates build on existing frameworks like the Gold Metal Loan (GML) scheme, originally launched in 1998 to support domestic jewelry manufacturers by enabling gold monetization. Key Changes to Gold and Silver Lending Rules ·          Working Capital Loans for Jewelers: Scheduled commercial banks (SCBs) are now permitted to extend working capital loans to jewelers using gold or silver as collateral for manufacturing or industrial processing. This is a targeted carve-out from the general prohibition on lending for the pur...
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Stocks and Gold slid on a hawkish Fed cut; to be on hold in Dec

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  ·          Fed Chair Powell poured cold water on Dec’25 rate cut expectations; Fed will now maintain neutral repo rate (AVG CORE CPI +1.00%) ·          Fed to bring down both core inflation and unemployment rate to 2.00% and below 4.00% (~3.80%) in a calibrated manner ·          For 2026, the Fed will maintain a neutral rate rather than a restrictive (core CPI+1.50%) or accommodative (Core CPI-0.50%) rate ·          As the present weakness in the US labor market is largely structural due to Trump policy uncertainty and AI issues, the Fed's rate cuts may not ensure higher employment ·          Fed credibility may now be at stake as the Fed is partially embroiled between Trump loyalists and critics; the Fed is now politically influenced On Wednesday, October 29, 2025, apart f...
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