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Silver is winning India’s “War on Gold”
As India continues to wage war with gold, investors are seeking out the yellow metal through any means available. Reports today suggest that there is not enough room on commercial flights into Dubai for all those investors seeking to purchase gold. “I cannot find a place for transporting gold on Emirates, on BA or Swiss Airlines this weekend,” lamented Tarek El Mdaka, the managing director of Kaloti Gold in Dubai adding he is shipping as much as 2 tonnes of gold every day.1 As we had suspected, it would appear that the Indian gold trade has moved offshore to avoid the restrictions on imports and extra taxes imposed. However, this is not the biggest change in the Indian precious metals market – silver imports have exploded.
Silver has not been exposed to the same import restrictions that gold has and recent silver import figures confirm that investors have flocked to silver, likely as a substitute for their desire for gold. And why shouldn’t they? With limited bank branches in the country, owning precious metals is synonymous with savings and security. While it seems that the larger investors have moved their gold purchases offshore, we suspect that the majority of Indian investors have turned to silver as a substitute for gold. The recent import numbers are staggering.
While India imported 1,900 tonnes of silver in 2012, in the first five months of 2013 alone, imports have touched 2,400 tonnes. According to industry estimates, silver imports during the January-March quarter stood at 760 tonnes. Imports shot up to 720 tonnes in April alone, and in May they further swelled by 920 tonnes.2 Let’s put these numbers in perspective, according to the Silver Institute, the world produced 24,478 tonnes of silver in 2012, implying that Indians have imported almost 10% of world production so far this year. If they continue to import at the same rate as they have in May, over the next 12 months India could import close to half of world silver production which is a truly staggering shift in demand for silver.
The next salvo in the war on gold occurs this Monday July 1st when “The All India Gems and Jewellery Trade Federation” (representing 90% of jewelers in India) declares a ban on its members selling gold bars and coins. It’s almost unbelievable that this retail federation would impose an all-out ban on purchasing gold for investment purposes, but all is fair in love and war. However, Indians aren’t phased and are shrugging off this ban and investing their rupee’s in silver instead.
This new import data shows that the victor in India’s “War on Gold” – will be silver.
1 Gold rush 2013 style has Dubai scrambling. http://www.thenational.ae/business/industry-insights/markets/gold-rush-2013-style-has-dubai-scrambling#ixzz2XTAh0M1K
2 Silver imports shoot up as prices drift to multi-year lows. http://www.business-standard.com/article/markets/silver-imports-shoot-up-as-prices-drift-to-multi-year-lows-113062601067_1.html
Disclaimer http://sprottgroup.com/thoughts/
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Gold and silver will spike higher. What is the plan for those holding onto gold and silver? At some point do you sell? If we have total, complete financial collapse, will it be safe (and legal) to own (or hoard) gold and silver?
we few, we happy few, we band of silver holders . . .
Silver Bitchez !
Where can I buy some Indian penny stocks?
Don't know, but I have 400 Indian Head pennies for sale.
Will trade for Ag.
i did tell the mrs we bought some HL today at $2.82
i didnt tell her we own 50k @ $6
GOT SILVER? Slver.....Its what is for breakfast. Breakfast of champions......
"Indians aren’t phased..."
Sprott, the word is fazed.
Though I agree the meaning would be enhanced by the use of "fased", it is also probably true the Indians were not "phased".
I won't be concerned until Indians buying PMs are 'phasored.' That would indicate a rather unhealthy trend.
silver vs gold, recent price action correlation:
http://flic.kr/p/f17z1s
At one time I had Zero Hedge bookmarked in my Finance folder, then I moved it over to my Poiitics folder.....Should I go aheand and move it over to my Entertainment folder? The business reporters, the politicians, and the banking officials are starting to get kind of entertainig in in their explanations. "Damn it don't look at the prices of prescious metals over decades and centuries, all that counts is the last year!", "No Marvin what counts is the last 5 minutes!"
Is Walmart or Sam's selling PM's yet?
Silver Bullets KILL Bankster Werewolves.
And you can buy silver bullets at NWTmint.com. (for real) This is just FYI - I'm not pitchin for them.
You may be dead before you get your ammo...... not ther fastest when it comes to shipping
bought some 375 H+H rounds today
3.50 each x 200..
squirrel problems...
Silver&Gold; Horse&Cart; Republicans&Democrats; Love&Marriage
At these prices miners can't afford to produce silver for much longer. When supply completely dries up, will people finally tell the paper pushers and their ridiculous spot prices to go to hell?
Future contracts come due the miners will not negotiate for lower than production cost. Watch and see. The markets are going to split and hell breaks loose in the paper market once that happens.
i'm going to wait till the scheduled metals bash post jobs number friday. then, at 8:31, i will start my truck backing in.
and can we all say how utterly insane it is that we all KNOW now that Friday will be a major manipulation day? I mean the fraud is now so staggering, so blatant.....
I'm in the same boat so to speak
A+on learning to BTFD's
>>Indians aren’t phased
fazed
HaHA! A spelling Nazi. I'm sure that he meant "Indians are phasing out of gold, into silver".
I'm glad you corrected that so I didn't have to be the spelling Nazi.
The Indians are neither phased nor flanged. They're using a Leslie speaker unit.
I bought last week, and will be buying more again this week. I'm on the Silver train 100% now. It's too good of a deal at sub-20 and still good at 25.
I think with how low prices dropped I'm hoppin' on the gold train myself.
Read Two Short Planks blog on investing in gold and silver NidStyles...
http://twoshortplanksunplugged.blogspot.com.au/2013/05/gold-silver-real-...
I've scaled back silver and concentrated more on Au...
As long as the gold/silver ratio is a ridiculous 64, silver is the better value.
that's my reading
Yeah the ratio is pretty stretched. But I think it's more likely that gold will go down for a time before silver will go up. The industrial demand for silver is going like copper -- down.
Maybe we're not at the bottom, but I just took this opportunity to stack a few more.....
This data convinced me to buy some more coins last week-end, although I usually buy gold (because of taxes on silver). I wish I had more fiat to spend.
I wish I had more fiat to exchange for something of value.
Fixed it.
Yep, keep trying to squeeze that overinflated balloon...... Oh, it is expanding over here... Now over here....
You'd better blow some more air into it. That'll stop it from turning into a bubble ...
seriously, if you are not buying silver at $20 and change, you are retarded.
Wish my usual silver seller had some to sell.
I have to agree with you that Silver at $20 is a bargain.
I was telling people that when it was $5.00.
I was buying 90% bags then and no one wanted them.
I was telling people that at $35.00.
Sprott was telling people that at $45. Behind the scenes, Sprott was dumping silver like a MOFO.
FUCK ERIC SPROTT and his Goldman Sachs-wannabe ass.
I'll be telling people that at $50.36 and beyond, they still will not listen, though.
God forbid people make money on trading while promoting a secular trend.
It's one thing to make money trading. It's quite another to pump while you dump.
Yep, I have a joyous little DS boy who doesn't concern himself with the PM market at all while I back up the truck.
bottom 18.50 silver and ~1200 gold on record 6-26-13...we may be out of the woods or another leg down, before shooting to the moon???
http://zysites.com/silververitas/
SLW is a heck of a buy here. Not investment advice, DYODD
Hi Ho Silver!!
hi YO silver, away!
UpUp and awayyyyyyy