Yes, this happens all over the world let alone in India. This was understood by common man much before Chanakya wrote his Artha Shatra. Gold is a perfect alternate to protect your savings from inflation and the yield is insured and tax free.
Yes. As people invest surplus cash in things they believe the prices will never fall in the long run. Property and gold prices have hence seen a steep increase..equity and cash have yielded negative returns due to high inflation
no; they found gold was appreciating in global market steeply in 2012 and they were fancied by the profits from gold. that too with bears so strong on shares they would never allow any appreciation of the shares and for illiterates like the soros types, gold is not calling for an expertise to make profit, so they ere buying gold and rbi`s omissions/commissions had kept rupee at so low a value. that the gold buyer saw that he makes a profit in gold. inflation is down for almost a year, then the fancy for gold should be zero by now, but it is not. so rbi is incorrect.