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.
Some aspects of gold market in India Risk and Return on Gold Investments The return from investments in gold may be compared with the return on investment in Government bonds in the Indian markets.