India is planning on issuing Gold bonds to deal with unprecedented Economic slowdown leading to a devaluation of their currency, the Rupee. Here's a quote from the CNBC India website article titled: Rupee rescue: "Is RBI now gearing up for gold bonds? "Gold bonds would be issued to both resident and non-resident Indians against deposit of gold. Source (of gold) will not be questioned. Simple tax could be levied at the rate of 15%. Tenure is likely to be 10 years. Gold collected will be pledged with foreign lenders and funds will be availed at 3 to 4%."
So what does all this mean? Will more countries begin to issue Gold bonds, and what will be the implications for citizens of those nations?