Gold monetization scheme will have absolutely no impact on Gold loan NBFCs. For obvious reasons – one is a lending product, the other is a deposit product..
Currently, Muthoot Fin and Manappuram stock prices are under downward pressure due to the fear of fall in gold prices, once US Fed raises interest rates.
The belief goes that investors will dump zero-yielding gold and move to income yielding debt instruments when interest rates go up….
Historical data shows that there is no such correlation (interest rate hike leading to gold price fall) – see http://www.commoditytrademantra.com/gold-trading-news/gold-price-correlation-with-federal-funds-rates-since-1971/
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