India to move their gold reserves to Bank of England

[pmbug]

India's central bank said on Wednesday it has sought quotes from banks to swap gold in its own vaults for international-standard gold, aiming to improve the management of its reserves.

The Reserve Bank of India said the operation would "standardise the gold available with RBI in India with respect to international standards" and the gold acquired would be delivered to its overseas custodian, the Bank of England.
...

http://www.reuters.com/article/2014/07/02/india-cenbank-gold-idUSL4N0PD3QY20140702

... The gold that India purchases and sends to England will be rehypothecated and lost forever, purchased by China, never to see the light of day again.

If England is successful in this latest attempt to restock its reserves it will have won a major victory in the war of precious metals. This will be a huge boom to their diminishing reserves of gold. Gold that they desperately need to keep the artificial supply flowing to the market in their attempt to keep the price of precious metals suppressed.

The good news is that this shows the depths in which Western central banks are having to go to acquire new reserves. They are having to take more drastic measures than ever before. The day of truly free gold is coming.

http://www.sprottmoney.com/news/the...old-goodbye-nathan-mcdonald-sprott-money-news

Guess India never learned that the bird in the hand is worth two in the bush.

 

[dontdeBasemebro]

Someone is either really stupid or is on the take, put there to do this.

 

[mmerlinn]

Something is fishy here. Narenda Modi is pissed because his U.S visa was revoked, so he is courting both Russia and China. Why would he not put his gold there instead? Then his love affair with the East would go into high gear.

Putting his gold in the West does not make any sense to me especially considering that England has been an ally of the U.S. for centuries.

 

[pmbug]

I'm not sure that Modi is the one making this call. RBI's governor is Raghuram Rajan and he's a former IMF banker (and prof at the University of Chicago):

http://en.wikipedia.org/wiki/Raghuram_Rajan