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Gold Frenzy In India Continues For Second Week As Festival Approaches
When it comes to true demand for the "unfondleable" barbaric relic, one can look at spot prices (or listen to CNBC, at least when gold is correcting when it is being commented on every 5 minutes; when it has soared by $150 in 10 days, one hardly hears a peep), or one can continue looking at the absolute frenzy in the physical markets, now all over the world, where those who refuse to take their eyes off the ball, or the G-7 printers as the case may be, understand very well how this story ends. They also understand that the recent gold correction has simply been a buying opportunity, and the further the price fell, the more gold was bought until finally mints, refineries, and brokerages have run out of physical in inventory.
And unlike all those pundits who do nothing but talk (and/or "act" using monopoly money) these are people who actually put fiat where their convictions lie. Or rather, have continued to do so for a second week in a row, with a frenzy unmatched in history.
Bloomberg reports on the ground from India, the world's biggest importer of gold, where gold consumers "thronged jewelry stores across the country for a second week on speculation that bullion may extend a rally after the biggest plunge in three decades."
“We waited for sometime to see if prices will fall more but when we saw them moving up again, we decided it’s time,” said Sripal Jain, a 77-year-old silver dealer who came with his younger brother, daughter and daughter-in-law to buy gold necklaces at Mumbai’s Zaveri Bazaar. “We don’t have any wedding or occasion coming up. The rates fell, so we decided to buy"... "Some bullion dealers are asking buyers of coins and bars to lock-in price today and come two days later as they do not have much inventories,” said Dharmesh Parekh, a partner at R.V. Jewellers in Mumbai.
Nationwide daily sales of jewelry, coins and bars may be about 4 metric tons, compared with normal levels of about 2 tons to 2.5 tons, Rajesh Mehta, chairman of Rajesh Exports Ltd. (RJEX), said yesterday. UBS AG said April 23 that physical-gold flows to India approached the highest since 2008, while Standard Chartered Plc said shipments last week were 20 percent above a previous record.
“Demand has been extraordinary in the past 15 days and sales this April have been much better than last year,” Kamal Gupta, chairman of P.P. Jewellers Ltd., said by phone from Delhi.
And if demand is soaring now, just wait for wedding season: the annual peak of gold consumption in the country in which gold has been an effective currency since the beginning of time, and where gold-backed loans represent a substantial amount of credit creation in circulation, and recently hit an all time high.
Just as interesting, in India not everyone is a momentum speculator, like the few remaining stock traders in the western world: there one can actually find examples of that dying breed - the value investor. “Everyone is thinking that they will miss the bus if they
don’t buy now as prices have started moving up,” said Ramesh Pahlajani,
partner at Mumbai-based Bherumal Shamandas Jewellers. “Demand has been
very good since last week.”
To be sure, those who have an angle are also getting involved: "Gold will rally to $1,800 an ounce by December as skepticism over the global recovery increases demand, billionaire Indian jeweler T.S. Kalyanaraman said on April 19. The metal hasn’t traded at that level since November 2011. Prices may climb to $1,550 within six months on physical and investment demand, according to Mark Pervan, global head of commodity strategy at Australia & New Zealand Banking Group Ltd. "
All this means that India is merely yet another place where one is greeted by "No Gold" signs in the windows of gold retailers, as the disconnect between the price at which miners can make product, the price at which it is sold into retail hands, and where the futures based market implies it should be, have broken all supply/demand linkages.
The rush to buy has led to a shortage in India and jewelers are paying premium of as much as $10 an ounce compared with $2 just 10 days earlier, said Bipin Jain, owner of Vimalson Jewellers and a vice president of the bullion association.
“Three days ago there were queues to buy coins and bars,” Jain said from his shop in Zaveri Bazaar, the largest bullion market in the country. “Demand has slowed a bit from then but buying will remain strong till Akshaya Tritiya.”
And speaking of Akshaya Tritiya, it is just three weeks away, when gold demand is really set to explode:
The Akshaya Tritiya festival on May 13 is considered by India’s more than 900 million Hindus as the traditional day to buy precious metals. Gold is bought during festivals and marriages in India as part of the bridal trousseau or gifted in the form of jewelry by relatives. The main festival season runs from August to October followed by the wedding season from November to December and from late March through early May.
“My sister-in-law is getting married and I have advanced buying because of the recent price fall,” said 33-year-old costume designer Praveena Saleja, as she examined a 350,000- rupee ($6,460) necklace studded with gems. “Prices will rise again. Nowadays the designs are more trendier so I can pair them with western outfits as well as Indian.”
Saleja said she considered gold as a long-term investment and was not deterred by the price slump.
What a refreshingly logical assessment.
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Nothing quite like eating a Vindaloo with a .9999 golden spoon!
Gold and silver up nicely for a string of days, yet the miners are getting slammed?
Perhaps they've changed their tactics...
this is why...cant make any money..
www.kxlh.com/news/drumlummon-mine-will-stop-operating-layoffs-announced/
My guess would be that the bullion banks want to own more gold in the ground as opposed to paper gold. Thus the heavy shorting.
They are eating gold in India....no seriously
http://articles.timesofindia.indiatimes.com/2011-12-26/bangalore/30558561_1_dosa-foil-gold
But Rajbhog's claim to fame is its gold dosa - a traditional dosa, but made with olive oil and covered with gold foil and probably the costliest in the land. Ordering the gold dosa will set you back by Rs 1,011
"Perhaps they've changed their tactics..."
Oh wait..., I spoke too soon...
Some PUD-o-nomics coming in 5...4...3...2...
Day 1: "Gold is collapsing! Look at that Comex price fall! I can just picture the hoarders with tears in their eyes as their yellow metal fantasies disintegrate in the face of the reality that no one cares about PMs except them. The world has moved on losers. Deal with it!".
Day 5 of massive run for physical: "You are just the worst sort of people!"
Yes you are absolutely correct. The 6,000 year history of gold/silver currency value has ended precisely during the flicker of time you are here on earth to witness it....moron.
In India Gold is almost a religion. Its almost sinful to sell gold and you sell it only if calamity strikes.
Only religion that makes sense!
Guess that provides balance to the cow thing?
Gold for the Indians
Thrift stores for Americans
That link seriously made my day, thank you very much for that!
Real economics has nothing to do with religion. Central banking fiat is what requires faith and religious zeal. I am sick of the fiatsters trying to gain converts to their cult. I wish the paper lovers would just announce the day their spaceship is going to show up and start drinking the koolaid already.
+1 LMFAO.
This is some of your best work.
Nanke Dawg Rap Video take one.....
My name is Nanke,
My buds is stanky
Rehypothecatin gold
From the Fed vault banky
My balance sheet is growing
And the debt is blowing
As the dollars we printin
Will keep the inflation flowing
Backed by Obama and the Krugman Fuck
I'm keep interest a low so the Hedgies won't suck
I'm a puppet to GS, JPM and the NWO
Don't fuck with my policy as the economy slows
Remy?
nah, fool.....I'll take a French Connection, yo. Dats Courvossier and Di Sarrano yo.
http://www.youtube.com/watch?v=EoS52fVtVQM
Damn, Ben – that's fly! Where'd you get it?
"Shoppers Willage."
That mask brings out the true Ewok in Ben
No gold is not money, its a fashion. BRO
Piece de resistence: Give him gold teeth a la Flavor Flav!
Yeeeeeaaaahhhhhhh Buuuoooyyyyyyy!!!!!!
What time it is?
"Shiva H. Vishnu, my jubilation knows no bounds!" -- Apu
Gad, I hope that guy (the original pictured guy) has some bodyguards, wouldn't want to give up that shirt on yer back! :>D
Damn! I gotta get me one of them Indian golden pimp shirts. I will be beating off the chicks off or maybe they will be beating me....off.
So long as not too hot for the .99999.
So THATS where all of JPM's gold went.
still available in moderate quantities here in Europe.
Get yours before the wholesalers put a 4 week shipping time on gold coins, just like silver at the moment.
http://silverdoctors.com/some-seriously-bullish-news-for-gold-silver/
is this how supply and demand works.....
www.kxlh.com/news/drumlummon-mine-will-stop-operating-layoffs-announced/
I just ordered a monster box of 2013 ASE's from Texas Precious Metals. This morning. They have them in stock but are selling briskly. Get yours before they are all gone! $14784, works out to $29.53 per coin.
https://www.texmetals.com/silver-coins/silver-monster-boxes.html
out of stock.....
Gone gone gone...
One thing I fail to understand is that why most analysts are recommending the purchase of Gold as a safe investment? The problem today is that the price of Gold is not derived by it's physical demand or supply but more by the speculative positions standing long or short on the commodity exchange like any other traded commodity, stock or currency.
The basic mechanism of price discovery (based on demand and supply for actual use) of anything traded on an exchange has been terminally infected by speculators having access to unlimited funds and super fast computers for trading leading to volatile price swings. This has been made worse by the launch of ETFs for anything and everything under the sun by the financial community.
The price of everything including Gold is likely to suffer when the speculators unwind their positions due to some event that they have not anticipated or foreseen.
http://www.marketoracle.co.uk/Article35345.html
www.letstalkmoney2012.in
That tide is turning.
One of the reasons some people recommend the PM group metals other than gold, is that they all have industrial value. If you can't get a good price from investors, you can still get a good place from industry.
The problem today is that the price of Gold is not derived by it's physical demand or supply but more by the speculative positions
Agree, but the big spec positions are SHORT, and the paper derivatives equate to a 50 or 100x multiple claim on the physical, which is akin to a SHORT spec position. So the spec position unwind will drive physical prices UP, not down.
You would think he could connect those dots if he has been here for any length of time.
If he is reading Monetary Metals (Weiners garbage contributions at ZH), no wonder he is confused.
Dense as gold
When price per ounce drops below price that miners incur to mine it, mines will close and supply disruptions will increase price again.
http://investorplace.com/2013/04/gold-miners-are-in-deep-schist/
Because keeping your cash in the form of gold has been historically much smarter than keeping it in constantly debased paper that fluctuates wildly in value just before it dies.
This stuff going on now has all happened before. We'll be back on gold soon enough. The reason? Nothing else has ever worked as a standard unit for global exchange. Gold grew up with border crossing trade. Global trade requires everyone to use the same unimpeachable unit of account. Failing that, your global economy shuts down.
Keynesianism is not economics. It is political goalseeking claptrap. It is no different than Pol Pot's vision of Utopia. You have to be an idiot to think it could work. And to make it work, you have to kill anyone who is not an idiot.
Heresy! Anyone who thinks gold cannot be fondled is a fool.
So many barbarians going for gold these days. Silly barbarians, relics are for heathens....
All hail Eris!! :>D
Tomorrow is pay day. Have to buy some on Akshay Tritiya, it's tradition.
Buy low and sell high and ZHers will pat you on the back---providing what you buy is PM, and not BTC.
Thanks.
For now there is no intention to sell :)
spoke to two LCS yesterday...both are actually getting very nervous as they are literally not getting any customers selling to them (sellers strike), they can't get anything near the supply they want from wholesalers, and their business (volume) has gone in the crapper.
Both were down to a small quantity of rounds that they would not sell until or unless they can either figure out how to get replacements or things get so slow they really need the cash.
Long Magnum moustaches, Short (on) girlfriends
Remember these 4 wordz: This too shall pass!
Silver seems to be the real story of the week. Inventories at dealers are either gone, or nearly so because of crazy demand. I don't know how long the paper pushers can hold it back.
Bitchez love gold - that's all I need to know.....
I hear JP Morgan is getting out of gold and silver markets and sticking with copper. They seem to be broke.
They keep this up and the plebes may start to offer them lead.
this can only help as we go down this yellowbrick road
http://www.kxlh.com/news/drumlummon-mine-will-stop-operating-layoffs-ann...
Here in Bangkok, activity at the gold shops is nothing remarkable.
Is it Songkran yet? The Thais like gold, their women look good in it, their burnished coffee skin sets it off real nice.
I miss Bangkok.
Thanks for that image.
Miss 'dat Sukhumvit Soi 56 Pussy.
I'm in the south of Thailand and the reputable shops are PACKED... the other stores (and they're on every corner) not so much. I was in one very crowded shop last week and multiple people were asking, "is the price going lower!?" One of the owners kept relating, "it may go up, it may go down, tomorrow you may be jumping for joy or crying."
I like the fact that nobody seems to like the gold bars here... they only want the jewelry thats marked up 7%
For the bitches, BITCHEZ.....
Thank you India for fighting the Fed and the banksters. And thank you, Indian guy, for that $225,000 woven gold shirt. Can you not get matching $225,000 pants?
A man with a $225,000 woven golden shirt needs no pants. - The Tao of PAF
+ $225,000
Nice!
He could have just gotten about 100 oz and a hooker a day for a year.
But would he the poster boy for gold the world over? You cannot buy that kind of publicity for $1 million.
I guess the Indian ho's will throw themselves at him from here....better than being gang raped.
Love at first sight? Or love at first bright?
The look that sez: You want some big boy, come and claim it!
Gold is gold. When he gets tired of the shirt, he can sell it for what he paid for the gold, minus the labor cost of making it into a shirt.
If gold goes up, he will make a profit. Or, if someone wants a gold shirt bad enough to pay a premium over bullion value, he will make another profit.
But it certainly will not go to zero.
<< Shortages are driven by drastic price action, supply response is simply slow
<< Shortages due to real underlying supply constraint + drastic price action
The Wholesale or the Retail shortages?
By implication, Green would be retail only, Red would be wholesale & retail.
Say, what do they do exactly at the comex? They, like, sell gold, right?
I thought the Crimex just rented warehouse space to people who once thought they owned gold bars, and ran a lucrative side racket book-keeping for gamblers.
(I'll go vote red now, but if an 800lb Gorilla shits in the corner the shit might come out green, and stink everything up for a short while)
I enjoyed this article...Here's how, read all the Indian dialogue very, very quickly with an imagined Indian accent.
I also warm to idea of a traditional day to buy precious metals.
"Gold is responsible for all the world's ills and it turns people into zombies." - PUD
i'm a zombie?
It's a good thing I'm prepaired for the zombie apocalypst, because we haven't seen anything yet with gold.
The eternal nature of immoral US 'american' goldism.
Now that's what I call bling!
I thoroughly enjoy refreshing my zerohedge page to see the incredible picture of the mustached man completely blinged out in gold--- outfit appreciation!
There are an average of 178 sesame seeds on a McDonald’s Big Mac bun.
And each one will add an ounce to your weight?
Those aren't sesame seeds, those are pickled rat glands.
NO, it's thin ratshit.
wtf it would have worked itself out
you of all people are asking other poeple other people to read for them
hehe i dont care one bit could have been killed 20 times
today
if that does not show any conviction that good night everybody
the guy who got so many sniper opportunities and free poetry slam
wow
ever hear of nebuchadnezzar
says the dipstick slapping his blabbermouth who probably revealed several secret military installations asshole
stfu you know about what they say about sinking ships
tolkiens silmarion you know what happend to the three borthers haha
oh wow real life rpg havent been moving around at all
shithead how can it not be fake
yeah because i said after surviving an explosion
the spetznaz had landed
you know for regime change and chopping down the world tree
there's that CNBC thing mentioned again, is that a Kim Kartrashian show?
Thanks wise people of India.
Oh my, this article quotes an Indian analyst on the subject of gold. I wish we heard more from India and China, as they have been doing this for thousands of years whereas our experts have been active 30 years at most.
In some businesses it pays to be old and to have seen a number of seasons and hundreds of thousands of wave patterns, as that 77-year-old dealer undoutedly has.
In civilized countries, the elders are respected; that is one true gauge of civilization. Amerika approaches the brute level, a new dark age is dawning here.
I just hope to cover my ass and those I care about, and watch it unfold from as remote a distance as possible. It is too far gone to reverse, you can only preserve the best for future generations at this point.
HAHA the "analysts" on the CNBS said "the average silver to gold ratio is historically 50:1" or some bullshyte. They are complete imbeciles. I wish I could get paid to be a complete retard for millions of people. I hear the circus isn't even hiring.
The BlowHorn could really use a midget or bearded lady onboard at Fast Money.
Jim Cramer? Maria Bartiromo? I think I see the faintest glimmer of a moustache...does that count?
FastMoney should be renamed "Last Money" because it's the last time you'll see your money if you take their advice.
"Last Money with Jiz Crammer" ... say this is fun!
They'd fit right in with all the Pinhead(s)!
All the mining slaves and children world wide are sharing your bliss. Mercury sales should be booming...get in on that too! Open those pits up in canada, fuck the salmon. Good job gold pimps.
Hey Pudster, Happy Aloha Friday you miserable fucking tool.
I'm not miserable. I'm a concerned rational inhabitant of this fragile place those like you could care less about
EEEEEEEEEVILLLLLLLLL
PUD, the fact you (an individual) are rational and aspire for people (the group) to be likewise shows your first mistake. As an idividual we can all see the imperfections of our monetary system and the silly abstract system it is...but so long as those in charge want to call something of unlimited quantity and no value "money" - then the counterbalance is something of finite quantity...I think we all wish it wasn't so (on so many fronts) but we are playing the cards we're dealt (warts 'n all).
BTW - I wish there wasn't fractional reserve banking, unlimited deficits, greed, rainy days, etc.
PUD, I starved a goldmining child slave today, then drowned him in mercury, just for you.
Now, where's that weed whacker? I got a rainforest to cut down!
It's the leprechauns, PUD. Leprechauns - all their fault, they started it. Must ... detroy ... rainbows
Some environmentalist you are: salmon don't fuck, eh?
why do you all try so hard to out do each other in the stupidness of your comments?
Which do you think is a bigger problem, gold mining or nuclear waste? Let me make it a little tougher: Fukushima or all the gold mining on the planet?
stupidity
outdo
caught it for U
Just curious... what is your canned reply for when somebody points out that it is correctly spelled "proofreader", not "proofreder"?
No PUD is correct. The appropriate usage and spelling is stupidness. I know this because just days ago he proclaimed that, "he is probably the smartest poster here."
Putz.
If your fiat-money buddies like Mr. Bernak wouldn't print USD like no tomorrow, nobody would feel the need to buy gold. So it's all the fault of your ilk.
These children that you pretend to care about so much suffer because you and your buddies can't stop printing. It's all your fault. How can you live with this guilt? I think you should kill yourself.
I'd buy some mercury if I could....
Dimes.... (if you can find them at spot)
http://www.apmex.com/Product/10427/90_Silver_Mercury_Dimes___100_Face_Value_Bag.aspx
Liquid
http://www.ebay.com/itm/Liquid-Metal-mercury-in-a-small-glass-vile-/151033830670?pt=LH_DefaultDomain_0&hash=item232a515d0e
Freddie
https://www.youtube.com/watch?v=oozJH6jSr2U
The arguments you were taught to believe simply ain't worth shit in the real world.
You never even tried to engage in a proper discussion by for example saying why you think X or Y is in any way a better store of value than gold.
My parents live in India we experienced 20% inflation year to year growing up, my mother was sharing with me how long the lines have recently been outside "Zaveri Bazaar" - India's largest retail market.
http://www.frontline.in/columns/C_P_Chandrasekhar/the-gold-rush/article4328365.ece
http://economictimes.indiatimes.com/markets/commodities/Domestic-gold-prices-rise-3-but-buyers-still-queue-up/articleshow/19643545.cms
Gold that cost Rs 200 in the 1960s is Rs 100,000 now. Inflation is massive here in the US too except that the US BLS is expert at covering it up.
Inflation is right now a cloud of gaseous exhaust hanging over us in derivatives contracts or such under-the-rug-sweeping financial instruments. When Ben Bernanke makes it rain (provides liquidity), the toxicity downpouring upon the economy does not create growth and fertilize innovation but instead corrodes value, dirties pricing, and pollutes streams of equity.
History will prove that the average Indian has more brains and common sense than the average American debt slave has.
@honhcha, obviously you sampled the upcountry girls in Thailand, as your average Bangkok lass is a) half Chinese and b) paler than an Alaskan blond ass. As for gold, huge increase in demand all over Asia, but no shortage of supply. However prices are at a premium to the spot/futures you stateside chaps go by (buy)
Songkran passed 2 weeks ago. The next most important holiday in SE Asia is one you might not enjoy as much as the Thai water festival. And that would be the April 30th victory day when Saigon fell. A day to be remembered and celebrated by all no?
Even my maid, Juanitia, bought some Bling from APMEX last week....moar and moar understand what's going on it seems...knowledge trickling in all directions.
I managed to close my long position right before today's smackdown. Thanks stupid banksters for giving me free earnings (which will promptly be converted to real money, bringing you a bit closer to default)
Oh and shorted the worthless paper mid-smackdown, as the cascade is most likely to continue. THANKS AGAIN IDIOTIC BANKSTERS.
JPM shorts aren't doing bad either. With some luck, MSM will soon report that they're close to default and/or will need a bailout.
Holy shit, this is one of my best trading days of the whole month. And 100% of today's FIAT profits are eagerly awaiting the next DISCOUNT GOLD ON SALE opportunity. Thanks IDIOTS.
IMHO you should consider yourself very lucky for making a paper profit playing THEIR game and not getting corzined or fucked in any of the many other ways they do it. I would advise against betting on someone's stupidity. I mean, what if they pull out a double-stupid and it plays against you? There are too many kinds of stupid and too many possible outcomes. This is not something you can rely on - it's just gambling (unless you have real good inside information). Just take the real profits out of the casino now (don't delay purchasing the physical) and enjoy the show.
Good play!
It does look like there's a much bigger tug-of-war going on in gold the past few days than usual. Instead of one large entity smacking down hundreds of small ones that bid up the price, it looks like two large entities with opposite goals (gold high v. low). The size of the moves in both directions is getting larger, last time I saw that pattern was prior to the '08 crash, but someone else might have a better memory.
Getting curiouser by the day.
I owe it to you and to all the wise people around this place.
Which is this big entity pursuing high gold you speak of? Asian is buying hand over fist, but high gold price is not a gold per se, just consequence.
I have no idea who it is. Wild speculation, but looking at the chart it seems they have a presence in Sydney and London, but not Hong Kong or NY.
Ruling out suppliers on the BB list, perhaps it's Deutsche Bank. There's been lots of rumors about DB being in trouble, and Germany was trying to gets it gold back. I could see them buying, bringing the price up, while JPM keeps trying to knock it down to end the pain. Wild guessing on my part.
The decline might well be caused by people just like you closing long positions. You are doing the right thing getting physical.
It's very obvious that no matter what the demand is for physical and no matter how high the premiums go for the real thing, the PTB must continue to manipulate the paper price to try to convince the world that the dollar is still woth something.
I just checked Kitco, they are no longer selling gold to USA over net: 1 oz Gold American Eagle, 1 oz Gold South African Krugerrand, 1 oz Gold Good Delivery List Bar, 100 g Gold Good Delivery List Minted Bar, 100 g Gold Good Delivery List Cast Bar, 5 oz Gold Good Delivery List Bar, 10 oz Gold Good Delivery List Bar, 10 oz Gold Perth Mint Bar.
This is what you get when trying to order:
Shipping only outside US
Due to high demand, this product is only available outside of the US. If you are looking to buy this product, please call us toll-free at 1-877-775-4826.
pods
Why would they only ship outside the US?
It's been that way for over a week.
Hi pods :)
WTF ???
Gold spot down $30 in 20 minutes - and Silver off over a dollar.
Congratulations, whomever - guess you showed 'em who's fucking the cat.
Claude Balls
Notified my latest order shipped on 24th. Yippieeee!
Pre bank holiday smackdown. M T W banks closed in China.
Next week will be interesting!
PUD - the intellectual Klingon from Uranus.