Trying times in India

In rural India, the biggest bullion buyer, a brutal new wave of the virus has had a catastrophic impact on the economy and incomes.With fewer banks around, people in rural areas rely on gold in times of need as it can be easily liquidated.

NEW DELHI: Paul Fernandes, a 50-year-old waiter in India, last year took out a loan using his gold as collateral to pay for his children’s education after losing his job on a cruise liner. This year, he is selling his gold jewellery to meet expenses, after failed attempts at starting a home business and finding another job.

“A gold loan is after all a debt that I am taking on, ” he said from his hometown in the coastal state of Goa. “Selling my jewellery means I am not obligated to pay someone back along with an additional interest on that.”With the pandemic pushing millions into poverty or bankruptcy, many Indians are now turning to their last resort: selling their gold jewellery to make ends meet.