Did India Just Hurt Gold’s Chances Even Further?

For India, gold seems to be a way of life and is featured prominently in several festivals and cultural events. According to the World Gold Council, India is the world’s biggest importer of the metal and purchased 863 tons of gold last year. However, all of that gold buying has significantly hurt the nation’s account deficit. In the face of India’s poor economy, that’s a major issue.


In order to combat this issues, the Indian government has set fourth an aggressive stream of tariffs designed to reduce the nation’s gold buying frenzy.

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http://www.investopedia.com/stock-an...-c-gs-gdx.aspx

Who doesn't want cheaper gold??

I can tell you, from my wife and her family perspective (yes she's indian), this is a great buying opportunity especially in the US and Canada! :clap:

Cheap metal...wow...cheap gold! Why is this such short term bad thing?

-Q

Well, it isn't cheap in India any more (relative to the rest of the world).

Last I saw, Asian buying was making up for the wane in Indian sales.

When the smoke clears, India and China will emerge as the richest nations on Earth. chino not only dopes not export gold or silver, they keep every ounce they mine. They have never been public about production, but I have read that China produces a giant shit-load of PM's. India has hundreds and thousands of temples, all of which have hundreds and even thousands of pounds of gold. One temple was recently identified as having "22 Billion dollars worth of gold and jewels".

http://www.npr.org/blogs/thetwo-way/2011/07/06/137627235/some-22-billion-in-gold-diamonds-jewels-found-in-indian-temple

This is just the temple that's in the spotlight right now, and does not include any of the lesser temples or even the other great temples.

In China, gold has been bought up as fast as it has been produced by the Chinese population, who now have legal access to both of the most popular types of shiny. There is no way to find out how much is truly produced and/or sold in china because as we all know, they do not publish much information, and when they do, they're usually lying. As of right now, they claim only 1,054 tons of the stuff, but the world knows it is many, many multiples of that. When they finally tip their hand, it will be to take over world currency hegemony.