How Black Money Recovery Will Affect You

As 500 and 1000 rupee note no longer remained a legal tender in India.

Black money hoarders are doomed. Others are happy by this move. But many common people aren’t aware of the coming market problems.

Blackmoney in india

Everyone is forced to deposit in bank:

 Everyone is now forced to deposit their money in bank. A lot of money now will be with banks.  Now lending rates will be slashed. You will now get less interest rate on your savings. But all this will take time.

Impact on gold prices and common man:

Gold prices will go high for few days. Those who are waiting to get married will be in huge loses. As after few days gold price will get down again. And because of a huge imbalance in market now one can predict what can happen to your gold investment.

gold_price

Real Estate:

Everyone knows how property dealing and real estate functions. Now as every one has to buy and sell property by their white money, property rates will fall hugely. It will help a common man to buy property or have a house. But some people will see it as a loss. It will take time up to 1-2 years to property and land to reach again on current costs. We can say that Real Estate sector will crash for some time but take time to go up again. It all depends upon the recovery of black money and the mathematics of inflation and deflation.

How wholesalers and hoarders will get into trouble:

Those who show less on papers and have much material with them will be now in fix. Either they have to sell it on rebated rates or have to wait till March. In both ways it will be a loss for them.

Value of money:

For some time until new RBI’s rate policies the value of money will go high.

This will lead to fall in the prices of goods. But after that it will take time to get normal. There will be two cases. One much of the black money will be declared  secondly it will go waste. This will either create shortage of money or will create a much imbalance.

What hoarders will do :

-Some hoarders will provide 1500 rupee change to common man over 2000 rupee note. Common man will have no difficulty to exchange that in bank. But for every such 50 customers 1 lakh of black money will convert into white.

– They will find some of their confidence in which they can adjust their amount. For which many will be ready with small percentage favor.

What will happen to Small Enterprises and New Startups:

s
s

New startups will face some problems because they will be in confusion that how market will react. Some will get less business as many possible clients will already in fix for money matters.

The ups and down of market will confuse them and will create a condition of perplex. They have to think twice before taking any step. Many of their monetary decisions will be based on luck.

4 Comments

  1. Navi November 10, 2016 Reply
    • admin November 10, 2016 Reply
  2. vageesh kumar November 10, 2016 Reply
    • admin November 10, 2016 Reply

Add a Comment

Your email address will not be published. Required fields are marked *