Larry Fink says India’s love for gold has done little for its economy [Video]

India’s fondness for gold has neither benefited its economy nor generated decent returns for investors, BlackRock Founder and Chairman Larry Fink said in his annual letter to shareholders of the world’s largest asset manager.

“When I visited India in November, I met policymakers who lamented their fellow citizens’ fondness for gold. The commodity has underperformed the Indian stock market … Nor has investing in gold helped the country’s economy,” Fink said.

Gold can be a good store of value but it does not stimulate economic growth; when someone keeps money in a bank, or invests in a house there’s a multiplier effect that leads to economic activity — “But gold? It just sits in a safe,” he said.

India is one of the largest markets for goldas the precious metal plays an important role in the country’s culture. It is often considered auspicious to buy gold during weddings and festivals. It is also viewed as a safe investment and a symbol …