For such purposes, we should carefully avoid becoming a hostage to any particular form of reasoning or theory. Although some indicators such as credit-to-GDP ratio and the deviation of real estate prices from the trends may provide useful information, we do not have any decisive indicators in this respect.
The RBI had, in the past, close links with Bullion Market Association, and the RBI’s nominee was a member. In the 1970s, gold sale was organised domestically by the RBI, even as it continued its interest in the study of gold and precious metals, monitoring prices, trade, etc., and constantly advised the Government on policies.