Letters to the Editor Gold “hoarding” explained

Gold hoard mocks poverty, an editorial in your issue of April 4, does not reflect knowledge of the social customs and attitude of Indians. It also shows lack of sensitivity to other peoples’ customs.

In India, gold ornaments are possessed by the rich and poor alike. These can be found with the poor in the remotest of Indian villages. Gold ornaments are given to daughters at the time of marriage in lieu of property and lands. Furthermore, these ornaments act as a security in adverse circumstances and in old age. Indians save gold as a hedge against inflation.

Canadians have an excellent social welfare and old age pension system. The Indians do not have this security and hence they rely on gold. The upper middle classes and the rich have graduated to the use of diamonds and other precious stones like their Canadian counterparts.

At the time of marriages everywhere in the world, rich or poor dress in their best clothes, adorn themselves with ornaments and jewelry. The Indians are no exception. India has a population of about 850 milllion. As per your April 4 issue, 224 million oz of gold are supposed to be hoarded in India. It amounts to 0.26 oz per person.

The price of gold in India is about $769(US) per oz compared to the international price of about $450. The high price acts as an incentive to the fast buck maker who finds India a smuggler’s paradise. It may be of interest to you that when the price of silver was higher outside India large quantities of silver were smuggled out of the country.

Gold mining practices date back to the early part of the 20th century. These practices were initiated by John Taylor and Sons. There are a large number of Archaean belts in India with geological environments similar to the Canadian gold belts. Canadian experience would be useful in exploring these belts in India which may result in the discovery and development of a number of gold deposits. This would reduce the smuggling of gold into India.

The use of Canadian experience in the gold mining industry in India was recommended in 1937-38 by James Bichan of the University of New Brunswick. Maybe the time is now ripe to utilize this experience. The Canadian entrepreneur may find avenues for investment and help in the transfer of the latest in mining technology. D. B. Sikka Consulting Geologist Montreal, Que.