I’m listening to the Billionaire Raj on Audible. The author says that intensive government regulation (the Licence Raj) and high income tax rates motivated Indians to operate a “black money” economy in which transactions were carried out with cash, gold and savings were stashed in real estate and gold, and the slow-moving wheels of government bureaucracy were lubricated with confidential payments in gold. In fact, it is possible that the massive size of the Indian economy and this massive unexpected need for gold is what has been keeping the price of gold so high over the last 20-30 years.
What if Elizabeth Warren were to be elected in 2020? She proposes more intensive government regulation and dramatically higher tax rates. Might this lead to increased demand from Americans for gold, as the same policies did in India?