Home› Precious Metals

India's attempts to limit gold demand

derrybderryb Posts: 36,825 ✭✭✭✭✭
in Precious Metals
"Dear India - here is a simple way to limit demand: price. "

"I think the Reserve Bank has advised banks that they should not sell gold coins," said Finance Minister Chidambaram, while speaking at an event in Mumbai.

Chidambaram also urged banks to advise their customers not to invest in gold.image

"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

Comments

  • OPAOPA Posts: 17,121 ✭✭✭✭✭
    "The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit." Well, if there ever was one sure way to send demand for any product through the roof (guns, ammo, etc), it is for the government to prohibit its outright sale. What follows next, almost without fail, is a panicked, chaotic buying scramble.

    Gold imports by India, the world's biggest buyer of bullion, surged to
    162 tonnes in May -- more than twice the monthly average in the record
    year of 2011.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • derrybderryb Posts: 36,825 ✭✭✭✭✭
    India needs a COMEX. image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • mrpaseomrpaseo Posts: 4,753 ✭✭✭
    So is this good news or bad news?
  • mrpaseomrpaseo Posts: 4,753 ✭✭✭


    << <i>India needs a COMEX. image >>

    ^^^^^ That's comedy right there folks...lol.
  • derrybderryb Posts: 36,825 ✭✭✭✭✭


    << <i>So is this good news or bad news? >>


    It confirms the ongoing battle between private gold ownership and the central banks that would rather see the money go to "preferred" investments.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • CaptHenwayCaptHenway Posts: 32,156 ✭✭✭✭✭


    << <i>So is this good news or bad news? >>



    The linked article suggests that by trying to limit purchases India has only increased demand.

    Look what happened to the gun and ammunition market in America when people started alleging that the government was going to try to limit supply.

    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • mrpaseomrpaseo Posts: 4,753 ✭✭✭


    << <i>

    << <i>So is this good news or bad news? >>


    It confirms the ongoing battle between private gold ownership and the central banks that would rather see the money go to "preferred" investments. >>



    I wonder what Minister Chidambaram's Gold position is these days?
  • mrpaseomrpaseo Posts: 4,753 ✭✭✭


    << <i>

    << <i>So is this good news or bad news? >>



    The linked article suggests that by trying to limit purchases India has only increased demand.

    Look what happened to the gun and ammunition market in America when people started alleging that the government was going to try to limit supply. >>




    It leaves one to wonder if this was done on purpose to raise the demand or eventually the SPOT price.



  • mhammermanmhammerman Posts: 3,769 ✭✭✭
    "It leaves one to wonder if this was done on purpose to raise the demand or eventually the SPOT price."

    ...or maybe crush the paper market by depositors stripping supply, demanding their "stored" gold and suing for the physical if they are offered a cash settlement in lieu. Or, it could just be the same thing except caused by demands for repatriation of "stored" gold in depositories back to legal owners, ala Venezuela and Germany. Regardless, it certainly appears that there is a tug of war going on between the paper boys and depositories v.s. the actual PM owners. Maybe, after this plays out a little, we will see some reality in the spot for hold it in your hand type PM without the influence of a highly leveraged paper component. Just wondering...

    Got GOLD?
  • BaleyBaley Posts: 22,660 ✭✭✭✭✭


    << <i>

    << <i>So is this good news or bad news? >>



    The linked article suggests that by trying to limit purchases India has only increased demand.

    Look what happened to the gun and ammunition market in America when people started alleging that the government was going to try to limit supply. >>



    What, a bubble in prices?

    It's said that firearm and ammunition manufacturers and retails, if they're not covertly fund Democratic candidates because it's so good for sales, they should be

    Liberty: Parent of Science & Industry

Sign In or Register to comment.