A number of reasons can be cited for the low response, prominent among them being depositors’ losing the making charges spent on jewellery (as the banks would convert them into primary form before accepting as deposits), the low caratage of jewellery, low rate of return on deposit (as seen by the depositors) and the absence of any amnesty.
The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility to commodity markets. The weakening of the U.S. dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is also now coinciding with the across-the-board rise in food prices.