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India Gold Imports Hit Record As "Price Is No Longer A Factor"
All those who continue ridiculing gold, saying it has no utility, tend to forget one thing: it just happens to be the ultimate status symbol (especially for the nouveau riche). And who these days wants to demonstrate status (and has a lot of nouveau richness)? Why, the 2+ billion consumers who are benefiting from the biggest growth story in the world, i.e., China and India. According to the World Gold Council, gold demand in India in the last year reached a record. Per Bloomberg: "Purchases were about 800 metric tons, compared with 557 tons in 2009,
Ajay Mitra, managing director for India and the Middle East at the
producer-funded group, said today in a phone interview from Dubai." But how is that possible? After all gold prices surged in 2010 compared to 2009: is gold demand supposed to be inelastic? Surely you jest? Well, no: "Our assessment is demand will continue to be strong,” [Mitra] said. “Price is no longer a factor.”" Re-reading the bolded sentence a few times just may explain why PM distribution centers with actual physical inventories have suddenly become rarer than hen's teeth.
From Bloomberg:
Gold imports by India, the biggest bullion consumer, likely reached a record last year driven by investment demand, according to the World Gold Council.
Purchases were about 800 metric tons, compared with 557 tons in 2009, Ajay Mitra, managing director for India and the Middle East at the producer-funded group, said today in a phone interview from Dubai.
Imports at that level “would be the highest for India in its history,” he said. The group hasn’t released final data for last year. Purchases in 2010 may exceed 750 tons, Mitra said Nov. 17. The Bombay Bullion Association said Jan. 3 imports probably totaled 700 tons in 2010.
Gold for immediate delivery rallied 30 percent last year to reach a record $1,431.25 an ounce on Dec. 7 as investors bought the metal as a protector of wealth. Demand for bullion as an investment in India surged 73 percent in the year ended Sept. 30, according to World Gold Council data. Purchases by the Asian country this year will remain “strong,” said Mitra.
“Our assessment is demand will continue to be strong,” he said. “Price is no longer a factor.”
Investment demand for gold in India grew faster than the 62 percent gain in jewelry demand in the same period, according council data.
“It’s been demand driven with investment in mind,” Mitra said. “While jewelry is a form in which a lot of consumers do buy in India, the core proposition really is security for the future, which is the investment angle for buying into gold.”
And that's just India. Next, throw China into the pot, mix, and let simmer...
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If gold were bought only because it is a status symbol, then every gold owner should be worried when this crazy fad/bubble would die out and collapse.
But gold happens to be money. That is why I am not worried.
Bearster
Except in the case of India Gold is also involved with various Religious celebrations. And obviously jewelry.
This doesn't equate with US, or anywhere else, that does not have the same emphasis on other than economic factors.
Home
Damn...update from Markets entity...Too many immediacy values with too high sums in the impact, duration, and tension levels to ignore so had to stop work to extract and post the update below. Rest of the report better not be like this or it will take forever....
Extract from upcoming Shape Report: Markets entity:
As 2010 fades rapidly from sight, and mind, we note that the Markets entity is pretty much as its primary supporting descriptors would have it, a [basket (of) crises]. The [basket-case markets] set has secondary support coming from [interwoven] and [inextricably twined] which are themselves both supported at their primary levels by [bad foods] which, given its supporting sets, we are interpreting as [indigestible products]. These [indigestible (financial) products] are about to make [minions (within markets)] go into [spasms] of [violent puking]. This is indicated to be a [planet wide] level event, that in its turn brings [international grievances] and [inter country tensions] to a [visible] and [frightening] level that will be described (in the msm propaganda press) as being a [boil over] situation. The interpretation that we have about the [indigestible products] is that they fall into the category of [derivatives] in general, but specifically there are linguistics around the idea of a [gold price tied/bound] form of [derivative] that [fails] in an [instant] due to a [crisis] in the [gold/precious metals market]. This forecast is based on a lot of immediacy data value sets and so may be within days of happening, and likely will be occurring by the time that this Shape report is published.
clif
January 11, 2011
Has anyone else noticed that nearly everything for copper to crude to soybeans are back near 1/3/11 levels yet gold is still $60 off its high? Thanks, Blythe!
http://tfmetalsreport.blogspot.com/2011/01/getting-frustrated.html
Turd -
remember not to long ago when i went off here cause they slammed both forms of real money as they were attemtpting to go balistic? u told me to chill out...
now u understand why i was and continue to be pissed...the shit is just way to fucking obivious and Chilton and those bitch ass regulators just stand by with their hands n their pants....
thanks for ur site...im a fan
to you and the turd....we need to be patient...the physical market is going to strangle the hell out of the paper market...it will shock us all....just patience is all we need...it will be one for the ages...just go long and stay long.....
encouragement appreciated...just hate bankers and their worthless debt coupons...
Salute.......
Unless you are a short-term trader, in which case you would be trading paper gold, then that $60 doesn't mean sh*t. Relax.
Tell me about it, about to marry an Indian lady. Engagement rings of gold only (diamonds not required) and for marriage a Mr T 22 carat gold chain. These Indians know about wealth preservation!
... and it's been money for a long time, since pre-history infact.
"The Max Keiser, “Crash Banksters, Buy Silver” program is working. Max and Bid Bullion will launch a limited edition of silver coins. 25,000 units of 1/10, ¼, ½, 1 oz and 5 oz silver coins with max on one side and on the other side “Global Insurrection Against Corporate Occupation” and or “Crash Banksters, Buy Silver.” They will be .999 silver. Max will not benefit in anyway from their sale." B. Chapman 1/12/11
NEM is probing the lows with less than half the volume from last week's panic.
If the test is successful, then we should see a bullish spring off the lows.
Thanks Robo, nice post
Yes, thanks Robo. Good stuff.
Geez, I usually mouse-wheel right over Robo's comments. I actually had to go back and look...
NEM's been a dissapointment for me. I couldn't find anything really wrong with the company and it seemed like a good value when I bought in Nov. At that same time I acquired FCX, which is also a copper/gold company, and it's doing great. What gives?
I think the PPT own equity in mining corporations.
Considering ore rich mother lode property.
Danger Will Robinson. Gold induced tsunami coming.
In case of Fiat Collapse, go to high GOLD or SILVER.
There, I fixed it for you ;-)
LOL
Banzai7 Labs has invited me (and Bruce Krasting for his brilliant weasel pictures) to his photo-shop satire clinic next month. (The airfare to Hong Kong is a killer. :>))
Once I'm properly trained by the great WB7 himself I'll be able to mark up the images. Until then I'm reduced to crayons and magic markers. :>)
how about holding hands to hold the tide? :-)
thats why i do not really get the point of supressing gold to such ridiculous low level and let china, india and everyother sucker buy it so cheaply
The point is to buy time while bankrupting the american people and taking over our country.
remember a lot of chinese couples did not marry in 2010 ( year of the tiger).
All those pending marriages in 2011 would probably increase sale of gold further.... me thinks.
Don't forget to add Russia and Vietnam too. Wonder if those rioting Bangladeshis might decide to drop their stocks and pick up some more hard assets.
Indians understand the price/value disconnect. The price of gold at the margin is understated.
Some oh regional thinking indians do or are trying to at any rate! ;-)
http://aadivaahan.wordpress.com/2010/07/24/value-vs-price/
ORI
+++
Gold is a bargain under $1500. Probably a bargain under $2000.
One man's opinion, but much influenced by a friend of a friend of another...
Old World status symbol/cache: 18- and 22-kt jewelry; fine gold ( .999 ) coin and bullion. Tangible wealth.
New World status symbol/cache: 60" Sony Bravia 3D tv w/goggles, on a Best Buy credit card.
Note that paying the credit card bill is optional. However, it is somewhat difficult to buy gold or silver on the credit card.
Apmex takes credit cards....
True, but don't they charge a %premium for CC purchases? Here in Britain, I have seen a couple places on the intarnet which will take CCs but all of them charge extra. Also most of the small shops I've been to don't take credit cards at all.
Why use a medium that leaves a paper record?????????
For the civil disobedience of it. JPM/Chase CC now offering 0% apr until 2012. Oh, the irony..
No way around a paper record here. Any purchase of PMs in the UK leaves a paper trail. Supposedly it is to prevent money laundering (lie).
Can you not use cash?
Sure you can. Cash or debit cards, some places even take credit cards. However, when you buy or sell, they require proof of identity and address. This is usually in the form of a drivers license/passport and a recent utility bill.
It just makes it easier for them in that they wont have to open up all the safe deposit boxes, they will have a nice list to go off of.
pods
D@mn, if only I hadn't lost all my Gold chips in last night's poker game...
Hop a flight down to Vienna, mate. Purchase anonymously (under E15,000) at the mint.
http://www.austrian-mint.at/shop_lokale?l=en
You know you like the Philharmonics, c'mon.
Someone let me know if Jon Nadler has anything interesting to say. I got tired of him talking about how savvy the Indians were on timing their gold purchases on only pullbacks. If they listened to Nadster they wouldn't have bought an ounce in the last three years.
Nads will state how the scrap meltdown inventories have dropped below the amount that Indians are buying, or some other stupid shit. I stopped reading him long ago, when I found that bald spot from scratching my head so much. He has to be somebody's brother-in-law over there at Kitsmo.
They have a huge unallocated pm pool, can you say pm run?
Price no longer a factor.
Debt no longer a factor.
Inflation no longer a factor.
FASB Rule 157 no longer a factor.
M3 no longer a factor.
Rule of Law for GM bond holders no longer a factor.
American troops occupy foreign country in longest American war no longer a factor.
Declining global oil supply no longer a factor.
Increasing global oil demand no longer a factor.
Average calorie eaten by an American travels more than 1,000 miles no longer a factor.
All Western American aquifers depleated beyond refill in a lifetime no longer a factor.
plus .5... your tone lacked (that rule 48 just shit on me) feeling I was looking for.
other than my feelings, the info was spot on.
No longer a factor....until it's an inescapable factor.
We may be on the last giddy dash the Selma and Louise gun-the-car-over-the-cliff moment in history. It's happened before.
You make some good points, I especially think the breakdown of the rule of law is important.
But why focus on the distance that food travels and ignore that all locations are not created equal when it comes to mining or agriculture. Mao caused a mass starvation by declaring that all provinces had to produce iron ore. We could cause a similar problem by prohibiting shipping for food and forcing all locales to grow their own. Not to mention even if your only concern was carbon, and not cost, quality, human lives destroyed, etc., it is still more efficient to grow crops in the best place with less (petro) fertilizer than to grow them locally and fertilize the crap out of them to get them to grow at all.
You are absolutely right! Sometimes I forget that:
Declining global oil supply no longer a factor!
Increasing global oil demand no longer a factor!
...and may I add...
Overpopulation in China and India no longer a factor.
Max Factor no longer a factor.
Factories no longer a factor.
OK, the word 'factor' is starting to sound wierd.
All Western American aquifers depleated beyond refill in a lifetime no longer a factor.
Sometimes the thought occurs that they are bankrupting the great lake states precisely due to their ownership of the great lakes.
Ownership of the Great lakes by individual states?...Why does Canada have to put the majority of navigational markers on the Lakes?
status = money
And let's not forget the East Timorese! And the Tuvalus!
"Price Is No Longer A Factor" That sentence alone should tell you that gold has hit it's high for a long, long time.
Have you considered the possibility that 'price doesn't matter' because it is bench marked against fiat? For those that have a basic understanding of the current world situation, that is exactly the reason.
increase in ozs of PMs owned = more wealth, irrespective of its price in fiat currencies. not a particularly difficult concept to grasp . . . or is it?
He shoots and misses. Not a hockey game Mr. Hartford.
More like Rollerball...Johnathan, Johnathan!
I read that the same way. Very similar to housing price top. Who cares how much it costs, you'll be able to sell it for more later. That is a sign of euphoria (in the clinical sense).
However, it is possible that a blowoff phase is still to come for gold, and the madness of crowds is always unpredictable. Until the world stops throwing money at the problem though, it appears gold/silver will have a bid. It doesn't appear that economic recovery has stopped gold/silver ascent much.
I hope this is sarcasm. The gold equals illiquid housing argument again? Madness of crowds? Far less than 5% of Americans have any PM exposure at all. And what "economic recovery" are you talking about?
Ponder this quote from Harry Schultz,
“For gold to match the growth in US M1, M2, public debt & budget deficit, gold will have to reach $1,800, $2,400, $7,800 & $13,200, respectively. While I can’t imagine gold going to $13k, these numbers tell me that calling gold a bubble is a bit premature. In my view, money supply, public debt & the budget deficit are in a bubble, not gold, not yet.”
Not sarcasm at all. I think it is very clear this is an economic recovery, and that it will only continue to be so as long the crutches are in place, and added to every so often (QE2). That will end at some point, and it won't end well.
If "price doesn't matter" doesn't ring alarm bells for you that's okay. That's what makes a market.
The calculations are pretty but they have one massive assumption; that debt issuance will continue and default will never occur. 71% of Americans just said they don't want the debt ceiling raised by Congress. It is clear that Americans are catching on to the game (albeit slowly).
I am not calling for a top in gold, it could be in a bubble right now, but the blowoff top has yet to materialize. Euphoria is nearly everywhere you look right now though, stocks and commodities. Investing in times of euphoria is a dangerous proposition.
It's an economic recovery in that the little bit of QE that does filter down into the hands of the public, through food stamps, unemployment and government employees especially teachers and administrators are plowing the USD back into the grocery stores and retail stores and for some, auto sales.
From working at the grocery retail level, I see that those are the only people buying the groceries most of the working people can not afford.
To me, an economic recovery is based upon production.
Thanks Eric.
No, I have ignored top callers and headlines like that for ten years or more. I never thought the fraud ridden COMEX would last this long, or that JPM's strong armed criminal suppression would be tolerated and allowed. Now that this has finally all been exposed, physical gold and silver will try to find their REAL price valuations which are multiples higher than these prices.
QE is here for many years. The debt ceiling will be raised no matter what the public thinks. The Banksters are running the show, not Obama and Congress.
It has been exposed, but it has not been corrected or punished as of yet. I don't expect that it will be either. They will take this to the very end. That end will begin with commodity prices hitting new all-time highs within the next couple of months (corn, soybeans today).
Between here and the end of QE2 there will be some major fireworks as a result of commodity price increases. I expected a better correction first, but the commodity market may have just begun the blowoff phase today. If the USD breaks below the 50 day moving average, then commodity price spirals will be unleashed.
If you believe that the US is in an economic recovery and would continue in said recovery without Fed POMO operations then you are not paying attention.
Check Case Shiller home prices for the last two reporting periods...for a starter.
Americans are America centric and discount any and all information coming from abroad. This might not be such a bad approach if America did not import 2/3rds of the oil it consumes daily.
Gold/silver will continue apace of fiat printing madness, even if Americans are failing to buy. Gold/silver are simply reflecting what is happening in all countries that are trying to debase their fiat currencies to promote exports. This will equal a massive fail.
Gold/silver are money and are resuming their role of the ultimate store of value. Now the metals are beginning to assert themselves as a transaction medium as well. Witness the current attempts to circumvent Iranian sanctions by using gold to purchase crude oil from Iran. All large RE transactions in Viet Nam and some other SE Asian countries are settled in gold/silver. SE Asian nations have seen hundreds of fiat currencies come and go...they have not forgotten what the ultimate store of value really is.
One day the sheeple in America will awake to the fact that they have been using monopoly money since at least 1971 and will rush to hard assets...that day is not today but it is coming.
Whalers, I'd wager, is another serial PM top caller who got it all wrong (yet again) four weeks ago; just before he opened this latest ZH account we have to viddy inconsequential blather from.
Whaler - you're a disgrace to the name. Maybe if we didnt have so many brainless fuckwads like you walking around CT we'd still have the hockey team.
But - in the meantime, bet on gold topping here, I'm sure that trade has worked miracles for you thus far. Don't let the door hit your ass on the way out...
Sincerely Yours,
Nathan Wind
Your just sore about losing the Whale.How is that Hockey hotbed North Carolina doing these days?
How do you explain my irrational behaviour? Price has not been a factor for me since I started buying around $350/ounce. I must be totally insane.
Me too Rocky re insanity. Every time I buy at a new high I always FEEL that I have overpaid. But, as time goes by I am always reassured.
My favorite is whenever I buy Ag, the price seems to tank for a week. My market timing looks like a short-term contrarian indicator. But then again, I got most of mine around $13, so I guess I won't complain too too much.
Count me among the 'insane' as well. I was out buying silver from local dealers today. I cleaned out their Morgans at $24 each... They ran out of silver bars prior to 10am.
This action is at a county fairgrounds each Wednesday. Hundreds of dealers of everything from bath soap to firearms to used Levis...and about 15 dealers of coin and bullion. Many of the dealers have delt with coin collectors for so many years that they are overwhelmed by those wanting gold/silver bullion. Bullion buyers show up and buy all their gold or silver without giving the numismatic angle a thought...I think most of the dealers are in a mild state of shock.
I heard somewhere that silver is historically more valued in China than Gold. Does anyone know the history of this or have any references to this?
They don't call it The Golden Age for nothing.
Prosperity and gold are forever linked.
Bling of first choice.
ANOTHER (THOUGHTS!) ID#60253:
In times of plenty, people say one thing about physical gold, but in time of change they do the opposite. History has shown that when paper assets start to be revalued downward by gold ( gold rises ) , it's physical supply dries up! People and governments "HOLD" the real physical and trade the paper, even gold paper.
Gresham's Law; 'bad money drives out good'... until it doesn't.
At some point the bad money gets so bad that no one will accept it. See Weimar Germany, Zimbabwe, et al.
http://en.wikipedia.org/wiki/Gresham's_law
Platinum on the Verge:
http://lhmarketwatch.blogspot.com/2011/01/platinum-on-verge.html
Bubble.
Can't eat gold.
You can't eat stocks, bonds, t-bills, fiat currency, bank accounts or ANY other instrument of debt either. So? What's your point?
Gold has been and always will be money and with IT, you can always (with very few notible exceptions) BUY food.
"Bubble.
Can't eat gold."
You can't eat paper either but you can wipe your ass with it.
Ha ha ha ha ha ha ha some jokes never get old.
I have gold... so I can hire Bitch Tits to wipe my ass for me.
[Ooops... looks like somebody didn't like that one. You wanna wipe my ass instead?]
as JW says: gold is money, and 'money cannot be in a bubble'. keep hoarding those FRNs and see where that gets you about 5 years from now
Bitch tits...
You ever get those smacked around? You have a nice set of balogna cheeks on you too there fuckface?
BTW - think anyone can eat your bitch tits?
Sincerely Yours,
Nathan Wind
Quick!!!!
Sell your gold, crash crash crash
Yawn, The moguls in my yard are generations old and make my family and I wealthy and above government manipulations. Yes they tanked gold and silver for 20 years. We backed up the fucking truck while most people were smoking pot, going to disco's, buying pets.com,etc
But why would I sell?
These coins and bars have saved my family on numerous occasions in the past.
Bribing prison guards, buying property for cents on the dollar, paying off the odd politician when required when they threaten us, etc.
Stick with 100 inch LED Super TV' and 7 inch smartphones.
Status / wealth reserve here in Thailand. It's more about wealth than it is about bling. 96.5% gold around your wrist is just as good as a coin in your sock drawer
Yes, in Asia the gold jewelry market is in fact a bullion market.
I can't say the same here in Brazil. Since we solved our hyperinflation back in the 90s people simply forgot gold as an investment. Well, at least thieves won't break into my house looking for gold cause they don't even know what that is anymore.
the world gold council has been selling gold through another outlet .....the INDIAN POST office......the premium is a bit less than what the banks charge( between 7 and 19% i believe).........but u know one thing.....whenever i hear of those world councils...the WTO, IMF , WB, WGC.....scams and fraud come to my mind..........
now why are the rothschilds out of GOLD business activity :
http://onlypill.tripod.com/allaboutgold/id29.html
they surely know ...that gold prices are gonna explode.......
i read sometime back this gold scam story caught by the chinese:;
http://www.chrismartenson.com/forum/tungsten-salted-gold-investment-scam-century/31370
and here:http://www.campaignforliberty.com/blog.php?view=28491
and here :http://beforeitsnews.com/story/1/443/IMF_Sells_Tungsten_Gold_Bars_to_India.html
i am in 2 minds ...should i purchase those coins from POST offices...
http://www.indiapost.gov.in/Operating_Procedure_for_Sale_of_Gold_Coins.pdf
I cant trust ANYBODY these days
In India buy from reputed Jewellery stores. They will buy back too.
Premiums are also lower.
Deleted
deleted
Deleted.
No shortage of manipulation today. PM's pushed down with the $US. What a crock of shit.
Enjoy it while it lasts. They are doing you and I a favor, really.
I'd say that the price is no longer a negative factor, but has turned positive as $1380 looks cheaper every day in the face of infinite QE.
It's all about subjective valuations changing as participants adjust to changes in price levels.
Price does matter. Try selling your gold to Indians for $2,000 and they'll tell you to shove it...the price is $1,400/oz. The precise language is that the relative market price is what they say does not matter. I'm long on gold and other PMs but I also know market price sentiments change. Dotcoms, real estate, tulips -- market sentiment changed. Gold is going higher, but don't fall in love with the investment, or get emotional. It is just an investment and the more you hear about masses piling in, stand guard. I still remember being told the dotcom stock prices "didn't matter" and I "didn't get it".
I'm still a metals bull and expect to be for some time, but comments like "Price is no longer a factor.”" typically are made closer to the end of bull.
We'll see what happens, but I much prefer to hear than kink of statement in a couple years.
I am from india and i can tell you the reason behind "why price is not a factor"
the land prices have gone through the roof. there are alot of investmetns coming from U.S Japan and Europe to india. To build factories and other buildings they need land.
Land prices have gone from costing 1000-3000 dollars per 0.625 acre to 100,000-300,000 dollars. The money is all black money meaning the deeds are done at the cost of what the local government deems the value should be however the actual price paid is at least 50 times the deed. for example, we just sold one acre land. the deed made topay taxes was at 2000 dollars however the prices we've got was 100,000 dollars.
Now we cannot take this money to the bank because then we will have to show the source of money. Therefore, we bought 25 kilos of silver and reinvested the rest of the money to buy another piece land that was cheaper. howver, we only sold one acre of land but we still have 110 acres of land.
The place where i am from has japanese and european compnies buying land. They are building a japanese city on 12000 acre land and the europeans are opening up colleges on 1000 acre land.
here are links for your reference:
most of this is mixutrer of speculation from Indian abroad and foreign money flows from large entities.
Also alot of H1Bs were lost their jobs and upon returining to india they used their aving in dollar/pounds/euro to purchase land and start businesses.
http://www.dholerasir.com/
http://en.wikipedia.org/wiki/Dholera
Gunpowder: thanks, that is a very useful piece of insight. If the land rush continues in India, then we can expect further shifts of the capital to gold. If the real estate rush busts, then we would expect less pressure. Any sense of factors that might slow the land rush? Seems like there is a long way to go and this would be very bullish for gold and silver
I'll second gunpowder. Land is THE story in India.
Banker's credit, just recently available in plenty to a population un-accustomed to it, has made people go nuts.
But it is a bubble. Especially urban real estate, total bubble. And a mafia controlled one to boot.
ORI
http://aadivaahan.wordpress.com/2010/07/24/value-vs-price/
It is helpful to understand 'cause and effect' in understanding this. The hot Real Estate and Gold markets in India are the 'effect' of Central Banks around the world devaluing their currencies. As long as the 'cause' continues unabated, so will the 'effect'.
Clint: True, but there is more to it. India really is growing and it respects property rights ( a vestige of British laws). China builds empty malls and does not repect property rights. Demand for Indian real estate will continue as real value is created in that country. I've said before the west has everthing it needs and will be a slow growth place relative to the India, where people lack even basic utilities.
Looks like they have some kinks to work out in the property transfer mechanism!
Thank the powers for keeping the prices flat today.
Should change the site to GoldHedge. What authority or experience do India have in efficient market pricing?
That's right, none.
Whereas in America, we have, "the grizzled 40 year old Mr. Sack, a 34 year old supervisor, two 29-year olds and a 26 year old ... who goes to NYU."
Take that efficient-market-pricing authority and experience, India!
http://www.zerohedge.com/article/meet-feds-pomo-desk-which-doesnt-even-have-bloomberg-terminals
What authority or experience does GSPOT have in dictating to the world what the supply/demand dynamic is for a country with a billion people all making decisions for themselves?
That's right, none.
The only GFORCE is the short pressure you're feeling while you're getting your GSPOT punished by golds big kaki.
Sincerely Yours,
Nathan Wind
People in India use gold as an alternative to a bank savings account. when money is accumulated through earnings, it is stored in the form of gold rather than at the bank. If cash is needed to purchase something in the future, the gold is sold. That is a huge piece of the "utility" of gold that nobody ever mentions!
It's mentioned all of the time in some circles. Currency for spending, gold for savings. We don't need a gold standard, this way of spending and saving can work just fine.
If you don't read FOFOA then I highly recommend that you start.
+ $1380
Yes re FOFOA.
fofoa.blogspot.com
Not so, inexperienced one. Look at the last big dip in gold prices. Gold (albeit paper gold) was sold to cover margins, etc. Look to see the same in the future upon the next market crash. Gold is a store of wealth and is used as such by those who don't even believe in it.
Funny how that works.
[Hey! Thanks for the junking. Looks like I have an admirer.]
Correct. You may notice that some Indian women fuse gold sovereigns to their wedding chains, and then snap these sovereigns off when cash or other transaction is required.
To be honest, the land rush is just starting (in 2007 when i was visiting for the first time we bought a house for 40,000 dollars or so which is not appreciate to 110,000 in ~3 years and climbing).
Also, keep in mind that many states are not livable meaning they are not stable due to huge mafia issues and political issues. many states do not have 24 hour electricity or water. Hence, the states such as Gujrat which are politically stable and have well developed infrastructure are seeing huge cash inflows. On top of that, the population growth (i was just there past month) is F-ing crazy therefore the land that is farmable will be invaluable in just a few years. therfore most of farmers are not selling but an acre or two to finance building new homes or buying new cars etc.
You can see us holding on to our land for a long time at least 5-7 years. Which is the consensus amongest most of the land owners. Therefore, i do not see this bubble burst anytime soon. However, i do see a small correct which will calm the volatility in land prices.
Example of land price volatility: we have over 1000 acres of land in partnership with a few poeople. We have had a japanese comapny approach to buy the land to build a materials company. the week before they approached us the prices were something around 700 sq foot (if i remember correctly the measurement as i am raised in the US and not used to the indian conventions). We the news spread about this incident the prices went to 1200+ sq ft in an instance.
point to remember: that most indians hold a lot of gold that have been accumulated for past 3-5 generations so the actual appreciation in wealth is also coming from gold prices.
There is no well developed infrastructure hence it is just being built.
india has been borrowing alot of money from IMF and other soruces.
indian's do have high rates of savings.
etc. :)
India does not borrow from the IMF. They contribute to the IMF. They take loans out of the World Bank.
Therefore, i do not see this bubble burst anytime soon. However, i do see a small correct which will calm the volatility in land prices.
The Bernank's famous last words.
i stand corrected ;)
The people who eat and drink where they shit are buying.
thats a huge signal to buy!
I see your avatar is a dog... and you talk about eating one's own shit and vomit.
Oh, I'm sorry. You didn't mention vomit. I did.
[Doh! I'm being stalked. A secret admirer? Come out and introduce yourself.]
how do you like my new avatar for JW? I figure if I changed the avatar people would forget the stupid things he said in the past and I could use him to fearmonger som' moe
Red faced again! You gotta stop that shit. Is that called some sort of reverse troll technique? You are definitely on a roll.
"Federal Reserve Bank of Philadelphia President Charles Plosser said yesterday that the U.S. central bank may have to reassess asset-purchase plans or the policy could “backfire.” European Central Bank council member Axel Weber said today that optimism about Europe’s debt crisis is “premature” and that it’s too early to say the region’s issues have been addressed.
“The Fed will most likely stay on its path of easy monetary policy for longer, rather than risk derailing the recovery with a return to policy normalization prematurely,” Edel Tully, an analyst at UBS AG in London, said in a report today. “Such an environment remains positive for gold, as does rising European debt concerns.”"
http://www.bloomberg.com/news/2011-01-12/gold-gains-for-third-straight-d...
Perth Mint in Australia reports they cannot keep up with demand right now with gold under $1400
Most popular item is 1 kilo bars of fine gold going to Asia.
Yeah, that makes me all warm and fuzzy...doesn't the public throw caution to the wind right a the top? Price doesn't matter? I'm beginning to think we maybe have one more push in metals over the next few weeks before rolling over. A 20-30% correction in the metals seems overdue. I'm looking for a graceful exit for my paper metals.