There are many who are debating that gold is no more the safe haven, while there are others who are busy accumulating it for investment. Jim Walker, MD, Asianomics still feels that gold is the asset calls of choice in 2012.
In an interview to CNBC-TV18, Jim Walker warned that the economic situation is bleak and more negative news is likely to continue from EU in 2012. He added, "I am not expecting EU banks to raise exposure to sovereigns. There is likely to be significant fiscal retrenchment in Eurozone."
Meanwhile Walker has expressed his displeasure on India's domestic issues which are keeping the foreign investors at bay. Critising the Food Security Bill, Walker feels that this is the not the right time for it.
Earlier this week, the Cabinet had approved the Bill and it is introduced in the Lok Sabha today. The Bill seeks to provide 7 kg of rice, wheat and coarse grains per person per month to priority households at Rs 3, Rs 2 and Rs 1 per kg, respectively. General category would get at least 3 kg of grains at a rate not exceeding 50 per cent of the minimum support price.
The Bill, if cleared ,will cover 75% rural people and 46% urban people below poverty line. Here is an excerpt from Jim Walker
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