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Tag: pro k nageshwar rao

  • Prof K Nageshwar: Why Gold Prices Are Rising?

    The unprecedented upward movement in gold prices is certainly baffling the common man and the market exports alike. The ubiquitous yellow metal uses range from a milk man’s wedding to the crown of the queen.

    India is the second largest consumer of this precious metal next only to China. But, the domestic demand for gold has substantially come down due to demand compression induced by the Covid-19 crisis. Still the gold is very hot. This remains the perplexing question.

    There are three kinds of gold supplies in the market. Firstly, the mined gold supply which has almost come to nil in India. Globally too, there is a very little supply of gold coming from mines.

    In the last two decades, the mined gold supply has increased by only 1.6 percent. The other two are the central banks releasing their reserve gold into the market and the recycled gold coming into the market from the household possession.

    Thus, there are structural supply constraints in the gold market globally making it the precious metal. The gold has given a cumulative annual return of over 14 percent since 1973, according to the market estimates.

    But, the demand for gold in the world has increased resulting in higher gold prices in Indian domestic market as most of the gold sold in India is essentially imported. There are several factors that led to the spurt in global demand.

    As the covid-19 induced global economic crisis looms large, the investment demand for gold has risen. The gold is highly sensitive to global economic trends. Gold is often perceived as safe haven resulting in higher demand during economic uncertainties.

    The confidence in dollar at least in the short term is waning. The Dollar index comparing its value to the other global currencies slipped by 9.3% in the recent past.

    The self imposed moratorium on global leadership by Trump led United States is resulting in dollar supremacy losing out. This may not be a long term phenomenon. But, it is contributing to higher demand for gold globally.

    The other investments portfolios like the stock markets, real estate etc., do not show any promising returns. The bank deposits, the preferred choice of those who lack risk appetite, are yielding negative real return on investment. The uncertainties surrounding the trajectory of Pandemic has accentuated these trends cumulatively contributing to higher gold prices globally.

    By — Prof K Nageshwar

  • Prof K Nageshwar: The Political Enigma Called Pawan Kalyan

    The actor turned politician Pawan Kalyan continues to be the cynosure of Andhra Pradesh politics despite poor electoral performance. His political flip flops, intermittent breaks to his political innings, wavering stand on host of issues make up to his political enigma. The ghost of Prajarajyam continues to haunt.

    Pawan Kalyan who is fond of claiming ideological firmness has moved from one end of the spectrum to the other. In 2014 , he was with TDP, BJP primarily through the saffron initiative. Subsequently he broke away from NDA to briefly join hands with the Left in 2019.

    His travel into the saffron parivar is agonizing to not only to his critics but even to his admirers. Political circles often call this as a transition from Che Guevara to Veer Savarkar.

    But, political alliances are not uncommon in India and Pawan Kalyan cannot be faulted for this. However in a new entrant into politics, people hoped for a new political culture devoid of such ideological somersaults inspired by political expediency.

    His volatile stand on Kapu question is baffling. The TDP and the YCP are known for politically using Kapu question. But, Pawan Kalyan who never wishes to present himself as a community icon, in fact not really so, is unable to extricate himself from Kapu cauldron.

    The man who once projected himself as a messiah of special status has now become more or less silent as he embraces the BJP. The people of Andhra Pradesh cannot still forget his scathing attack on political establishment be it ruling or opposition on the betrayal of special status cause.

    Pawan Kalyan who started his party calling it a 25 year odyssey refuses to seriously focus on the organizational work despite entering in the electoral arena in 2019. The crushing defeat he suffered both politically and personally did not wake him up to the need to build a robust political machine.

    His continued journey on both political and filmy platforms cannot be the only one reason for such an organizational shortcoming. But, the result is desertion of many leaders from the Janasena party.

    The increased inertia in his political activity ever since he allied with BJP cannot be explained by the Covid-19 limitations alone.

    By — Prof K Nageshwar