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India makes buying Gold easier
via TVR
Partha Sinha, The Times of India
In Mumba Naveen Nayar, a media professional, has been buying one gram of gold 4-5 times a year as a long-term investment for his twin daughters for the last three years. However, now with the gold prices going through the roof, combined with the rising inflation, Nayar (name changed) has been forced to re-strategize on gold investment.
Consider this.. In the last one year, gold prices in Mumbai have jumped from about Rs 19,000 per 10 grams to nearly Rs 27,000, a rise of 42%. Quite naturally those who were buying one or two grams of gold occasionally — which used to cost about Rs 2,000 or Rs 4,000 then—now have to shell out nearly Rs 3,000 to Rs 6,000. Since the salaries have not jumped by as much, these investors now find it tough to stick to their plan of buying gold even in the smallest of denominations available in the market. Innovations in the bullion market are coming to address this loss of affordability.
Wholesale bullion traders in Mumbai have come out with half-a-gram gold coins and some even with pieces of gold leaf that weigh as light as 100 miligram, that is 1/10th of a gram. In addition, to give buyers the guarantee of genuineness of the yellow metal, traders are also selling these in tamper-proof packages. While half-a-gram gold coin could now come for about Rs 1,400, a piece of gold leaf of 100 miligram would cost about Rs 300. And if the investor wants to sell them, the traders buy them back at the prevailing market rate but minus the packaging and labour charges, said a top trader in Mumbai’s Zaveri Bazar.
It is possible to make gold coins of half-a-gram weight from gold bars of one kilogram, the usual weight in which it is imported. The precious metal is hammered into extremely thin sheets— wafer-thin 100 miligram resembles a leaf. Nakoda Bullion, one of the leading bullion traders in Mumbai, 
has started offering gold coins of half-a-gram keeping in mind the investors who buy gold as part of their long-term wealth creation plan, taking the systematic investment plan (SIP) route.
Launched six months ago, Nakoda is selling about 2,000 pieces every month now, but expects this to rise to around 20,000 pieces during the coming festive season, especially before Diwali.”The idea has been borrowed from FMCG companies selling premium soaps in small packets in rural areas to meet the rising aspirations of the people,” said Chetan Rathod of Nakoda Bullion. Riddhisiddhi Bullion, one of the leading bullion traders and importers in India, launched gold leaf of 100 miligram in February as a pilot initiative. These pieces are now being used as gifts but Samir Shah of Riddhisiddhi Bullion says very soon investors would start buying them.
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not trying to be a d but i thought the JP Morgan quote was,
"money is gold, and nothing else"
http://aucontrarian.blogspot.com/2011/08/do-you-think-ben-bernanke-is-jp...
No, the original is right: Gold is money, and nothing else. I have read it many times in many different sources over many years.
Tis why? Cuz we have a very capable and reliable FED Chairman.
http://youtu.be/G3TltMNbgGQ
Money4Nothing -
I regret that I have only one thumbs up to give!
And remember . . .
You can't eat gold, but you can eat a Tulip Bulb.
Every Indian and Paki I know buys substantial amounts gold all year round. They "gold average" buying each month on the same principal that Wall STreet advises investors to "stock average" buying some additional equities each month despite the price.
The Chinese are still the leaders for gold buying I think.
It's Pakistani, not Paki.
No no, by Paki he means the kind that lives in England.
The Bernank can-do gaandu!
so you all agree that in the BRIC acronym, I stands for India and Innovation
so you all agree in the BRIC acronym, India
Innovation goes hand in hand.
I can't find a single one for sale.... :(
and the rounds sure do look cool... Anybody have better succes with finding some?
There is a story going round that bengladeshi women sell their black, luscious hair to western toupi and wig manufacturers for gold nuggets. Can't have the plebes wanting payment in gold! What is the world coming to...
Not just in Bangladesh. Poor women in rural India, rural China, Indonesia, all sell their hair for cash and convert it to gold as soon as they can!
J.P Morgan sells gold in any size, from cloud to cloud , from ashes to ashes to ashes , illusions to illusion .
stored in a vault in bagladesh ,, with a taco stand as backup for all redemptions ,
Yes, when will such things come to the United States? When will they think of the poor who are seeking ways to protect their earnings to build them up into wealth?
The answer is they never will here in the UNited States.
Actually, I got excited when I read this article because this is the exact same thing I've been thinking for a business idea. I know gold isn't big in the US yet, but when it starts outperforming everyone's 401k, I think that will change. My idea though is, with 46million people on food stamps, they can probably only afford small amounts of gold. I'm still trying to devise ways to effeciently reduce my gold bars and coins into small pieces for sale well over spot. I was originaly thinking .1g, but I think I need to find a way to get smaller.
That would detract from contributions to savings kept in banks or 401ks or IRAs, which are the proper vehicles for the poor to build wealth and patriotic as well, since in this manner they can support the system. These routes are, of course, subject to loss through inflation or other means.
Bold Gitchez!
Gold bitchez!!!
Guess I ought to get some.
Yes, you should. While I more-or-less understand the bullish case for silver, I think GOLD is the best of the PMs.
I own both, but much more $ value in gold.
Silver is for spending (in a SHTF), gold for preserving wealth to the other side.
The crackdowns are starting:
Federal officials now say that Liberty Dollars may be subject to seizure as "contraband."
The U.S. Attorney's Office that prosecuted NORFED founder Bernard von NotHaus states that individuals owning Liberty Dollars could have them confiscated, even if they are just holding them in their collection or displaying them for educational purposes, a reversal of earlier comments from the same office. In addition, a U.S. Secret Service official stated that while he could not offer a formal ruling, he suggested that Secret Service agents would be duty-bound to confiscate the medallions once marketed as an alternative currency before the arrest and conviction of von NotHaus on federal charges, including counterfeiting.
Concerns about the possible confiscation of the medallions led ANA officials to reject a collector's request to exhibit his collection of Liberty Dollars during the recently concluded ANA World's Fair of Money.
Coin World August 29, 2011
Phew.... You all better sell them to a european dude where those bans don't exist. I'll give you all 5$ per liberty dollar. :)
Actually, that makes no sense. America still makes Liberty comm. silver dollars. So the Liberty dollar isn't a coin purely from before and during the war. It's a silver dollar that is still being sold and made by the mint.
http://www.nakodabullion.com/
"----where those bans don't exist." YET. there, fixed it for you.
Jack booted drones with a badge and a gun without a brain in their heads...completely devoid of logic and reason. Must maintain status quo at all cost.
" Jack booted drones with a badge and a gun without a brain in their heads"
Not so different than Hitler's Brown Shirts and Youth burning books. The damned Unpatriot Act at work...
...
Silver is for spending (in a SHTF), gold for preserving wealth to the other side....
well said. Buy both
It's a false statement; where did the "logic" even come from for this statement? Whatever is preserved "to the other side" will also be preserved in Silver. Why is it when people make up weird stories to suit their own personnal predjudices they start acting like they had something to do with realty?
@ IQ 145,
Perhaps a guy like you can read FOFOA and judge for yourself:
fofoa.blogspot.com
Gold has ALREADY been chosen as the wealth preservation vehicle. You may ask why. The central banks hold it, the Rothschilds hold it, FOFOA"S "Giants" hold it, etc. And most of them got their gold for MUCH cheaper than it is now. And people are BUYING physical gold, the real reason the price is going up.
In the transition to the other side, if I have to spend any PMs to buy food, etc., I will use my SILVER. That should make sense, even to a genius.
I take your point about spending silver in a barter situation, which will likely come, but that's not the usual situation, is it?
FOFOA's big point is that wealth preservation and fiat circulating medium should be totally separate, that each has its place. I love silver, but it's too valuable to serve as fiat medium for very long. In the US, it lasted for only 31 years after the exit of gold (and poor old copper was gone less than 20 years after silver). To fulfill its role as political plaything, fiat must be producible "at essentially zero cost" as the Bernank famously said.
IQ 145's handle is indeed ridiculous, and a lot of ZH-ers junk him, but he's a worthy commenter, IMHO.
Take some time IQ 1.45 and figure it out!