Jewellery fabrication in the country has more than doubled since 1993 but the exports' share of fabrication has come down from 7.8 per cent in 1993 to 5.8 per cent in 1997. Though the demand for gold has been buoyant in other Asian countries like China, Thailand, Vietnam and Japan, it is largely a result ofbar hoarding than demand for jewellery. The rise in bar hoarding in these countries has an economic rationale. Actual devaluation or fears of a possible devaluation of the currencies of these countries led investors to buy huge quantities of gold to hedge themselves from currency risk. As and when the crisis comes to an end, most of this gold will find its way into the international market once again and the proceeds from the sale of the gold will be used to finance productive activity. However, this is unlikely to happen in India as most of the gold purchases are converted into jewellery for personal use. Thus, a considerable portion of national resources are tied up in unproductive assets. A suitable method therefore needs to be devised urgently to unlock such unproductive investments. Making gold loans by banks more attractive or a tax on gold holdings could be considered.