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India's attempts to limit gold demand
derryb
Posts: 38,639 ✭✭✭✭✭
"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.
"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.
Governments can print currency. Only the people can print faith in it — and they’re running low on ink.
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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.
Governments can print currency. Only the people can print faith in it — and they’re running low on ink.
<< <i>India needs a COMEX.
^^^^^ That's comedy right there folks...lol.
<< <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.
Governments can print currency. Only the people can print faith in it — and they’re running low on ink.
<< <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.
<< <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?
<< <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.
...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?
<< <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
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