This page has been archived and commenting is disabled.

India Finance Minister Begs His People To Stop Buying Gold

Tyler Durden's picture





 

While the overnight collapse in precious metals has been notably retraced, the media is unable to take its eyes off the ball that the status quo is shaking focusing on the demise and what that must mean for the future. Well, it seems, the Indian finance minister is very clear. Speaking in New Delhi P. Chidambaram explained his lack of surprise at the increase in gold imports in April (as physical demand exploded amid falling paper prices) adding:

  • *CHIDAMBARAM APPEALS TO PEOPLE TO CONTAIN PASSION FOR GOLD, and
  • *CHIDAMBARAM: MORE STEPS PLANNED TO CURB GOLD IMPORTS IF NEEDED

So China/Hong Kong is importing near record amounts of the precious metal into reserves and India is not only seeing demand but enough to warrant further government intervention... makes perfect sense that (paper) prices should be falling - or are the planners plans backfiring once again? As we noted here, as long as the price suppression of paper gold prices continues, don't expect any notable changes to these demand trends.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 05/20/2013 - 10:04 | Link to Comment Hedgetard55
Hedgetard55's picture

Silver appears to be getting whacked, what am I missing?

Mon, 05/20/2013 - 10:13 | Link to Comment Badabing
Badabing's picture

*Stop buying gold

*Stop breathing air

*Stop drinking water

True market value will stop the madness and nothing else!

Mon, 05/20/2013 - 10:15 | Link to Comment Dr. No
Dr. No's picture

Stop listening to Finance Ministers!

Mon, 05/20/2013 - 10:20 | Link to Comment flacon
flacon's picture

I'm sure he thinks that Indians should be buying gold-plated zinc neclaces as wedding gifts. Afterall.... it LOOKS the same.

Mon, 05/20/2013 - 10:59 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

And what if people in India start reading FOFOA?  How is the government there going to stop not just the cultiral love of gold but the possibility that gold could go up 30 times its present price?  Hmm...

Could gold go up that much?  Do FOFOA's numbers make any sense?  Well, maybe so!

"Gold Arithmetic"

http://tinyurl.com/ba7um78

Mon, 05/20/2013 - 11:20 | Link to Comment Rory_Breaker
Rory_Breaker's picture

One more reason to hate the prick, Chidambaram is also calling for merger of banks:

http://economictimes.indiatimes.com/news/economy/policy/p-chidambaram-fo...

Mon, 05/20/2013 - 11:34 | Link to Comment Arius
Arius's picture

i wondered at what extent they were going with gold bashing in India ... after all is only REAL stuff, cant do paper games with selling naked shorts of gold stocks in Canada ...

 couple this with capitulation of Hong Kong commodity exchange, ABN AMRO default and you get the real picture before the runner arrives ....

Mon, 05/20/2013 - 12:49 | Link to Comment Meat Hammer
Meat Hammer's picture

Dilemma:  Have true price discovery and let the genie out of the bottle that our dollar, and all fiat for that matter, is worthless crap...or keep smacking down the price and watch the plebs buy with both hands.  

 

Mon, 05/20/2013 - 13:04 | Link to Comment imaginalis
imaginalis's picture

Indians will stop buying gold when they stop eating chicken curry

Mon, 05/20/2013 - 11:48 | Link to Comment tbd108
tbd108's picture

Especially stop listening to finance ministers who really work for the Bank of England.

Mon, 05/20/2013 - 10:16 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

I would wager that the fall in precious metals prices is simply the result of falling global demand.

I notice that another sell side analyst has delivered a sell recommendation on gold today:

http://www.moneycontrol.com/news/brokerage-recos-commodities/sell-gold-silver-advises-karvy-stock-broking_875524.html

Interesting.

Mon, 05/20/2013 - 10:18 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

I'll take you up on that one.  Put me down for 250 Krugerrands.

Mon, 05/20/2013 - 10:18 | Link to Comment jcpicks
jcpicks's picture

Nobody wants paper.  Everyone wants the phyzz.

Mon, 05/20/2013 - 10:19 | Link to Comment Badabing
Badabing's picture

MDB no demand from HKMEX!

Mon, 05/20/2013 - 10:55 | Link to Comment Northeaster
Northeaster's picture

Maybe Karvy will have a better year:

http://www.sec.gov/Archives/edgar/vprr/12/9999999997-12-010311

 

Mon, 05/20/2013 - 12:16 | Link to Comment jonjon831983
jonjon831983's picture

ouch

 

looka like that Karvy Inc had big losses there

Mon, 05/20/2013 - 11:03 | Link to Comment JOYFUL
JOYFUL's picture

Spot on MDB... as usual, it's only 'the contrarian's contrarion' what has the cojones to just step up and 'tell it like it is!'

Demand has indeed.... fallen off a cliff. The Chinks have bought up everything they need to begin their yuan as reserve currency campaign... the rest of the BRICs... and big players like Turkey too, can't afford anymore damage to their trade deficits, so they're pulling the plug on domestic demand. ...via induced shortages.

Meanwhiles, in the West, the peons are simply too poor to purchase anything other than gas and groceries... and the big $ is scared stiff ... having been blown out of every market other than stocks.

Things are looking grim in Mudville alright... looks like you beat us fair n square MDB!

bUT WAIiT!             

TheOutlook wasn't brilliant for the Mudville nine that day:
The score stood four to two, with but one inning more to play.
And then when Sinclair died at first, and Sprott he did the same,
A sickly silence fell upon the patrons of the game.

A straggling few got up to go in deep despair. The rest
Clung to that hope which springs eternal in the human breast;
They thought, if only Blythe put down the bat, we could stay alive with that.

And then a hush came o'er that crowd, a deafening silence fell like a cloud. Next batter up not one there knew. A moan went up... we're done, we're through!. But that strange batter just eyed the ball, then picked it up … and said “That’s all!”

Game over.

There's only one thing worse than no demand... in the metals market. What could that be?  Ummm,

how bout.... no supply. It's all over cept the screamin now MDB! Next station.... Crash n Burn!

Your Facebook fortune is toasts... but come back soon... we luvs your boasts!

Mon, 05/20/2013 - 10:19 | Link to Comment AllThatGlitters
AllThatGlitters's picture

Funny, my wife begged me to stop importing gold into our household too.

So on last night's open, I initiated the process of importing a whole bunch of silver, LOL.

Look at the bounce back in real time: http://www.pmbull.com/silver-price/

Of course, gold never really tanked like silver, and you can still find it much more easily at reasonable premiums:

http://www.pmbull.com/gold-price/

Think the relative shortage of retail silver vs. retail gold signifies anything? I still don't know.

 

 

Mon, 05/20/2013 - 10:58 | Link to Comment James
James's picture

"Think the relative shortage of retail silver vs. retail gold signifies anything? I still don't know."

 

To me it signifies that people that quite possibly would have never bought into the metal markets in years past are now and Silvers' price point allows them to do that from a more modest income/net worth position. And then the stack just grows.(Betcha can't stack just one) In years past my cash would have been thrown @ business interests. Now, to me, it is metal in the hope of coming out the other side of this intact.

Same thing is happening w/firearms. People who in the past did'nt own are buying now. My local cabinet shop now sports "Ammo for sale" on storefront. In the past he was too busy selling/installing cabinets.

I'd enjoy a ZH report on just how much of current GDP comes from purchases of things not normaly purchased in bulk. I never used to keep 500 rolls of TP around.

Mon, 05/20/2013 - 12:17 | Link to Comment KnightTakesKing
KnightTakesKing's picture

500 rolls of TP? Holy crap!

Mon, 05/20/2013 - 13:56 | Link to Comment cynicalskeptic
cynicalskeptic's picture

That's maybe a 2-3 year supply, about right for personal use and trade purposes.   Toilet paper is one of those things that 'disappears' when SHTF  (figuratively).  And it's not like there are free Sears catalogues around to use as a substitute.

 

You could make a nice amount of $$ selling those in Venezuela right now.

Mon, 05/20/2013 - 11:46 | Link to Comment mickeyman
mickeyman's picture

He wants to buy it himself.

Mon, 05/20/2013 - 11:47 | Link to Comment mickeyman
mickeyman's picture

"Stop buying! You're driving my price up!"

Mon, 05/20/2013 - 11:54 | Link to Comment Common_Cents22
Common_Cents22's picture

all your gold are belong to us

Mon, 05/20/2013 - 10:09 | Link to Comment insanelysane
insanelysane's picture

Nothing to see here, move along.

Train derailment in Connecticut due to shoddy track and not terrorism.

Mon, 05/20/2013 - 10:18 | Link to Comment Badabing
Badabing's picture

the default is being played down.

make no mistake this is big news!

Mon, 05/20/2013 - 10:21 | Link to Comment williambanzai7
williambanzai7's picture

Yes it is being played down. And it is quite curious that it should happen in a City where people are jumping the turnstyles to buy physical.

Mon, 05/20/2013 - 11:31 | Link to Comment americhinaman
americhinaman's picture

hk merc closed because it couldn't compete with CGSE: http://cgse.com.hk/en/index.php  a very small number of investors were forced into cash settlement, but as with most futures exchanges over 95% of participants would have done that anyways.

physical gold demand in HK has accelerated tremendously, but there's no point exaggerating the importance of non-events such as the HK Merc closing, and the associated implication that any gold-dealing entity in HK has a shortage of physical gold.  physical gold is available in HK in as much quantity as you want.  last time i checked, over fifty 5 tael bars (~6 oz) were available at a single Hang Seng bank outlet.  BOC is fully stocked with gold maple leafs (leaves?).  at the PBOC (chinese govt equivalent of the fed) outlet for gold pandas can order as many as you want for delivery... in fact i saw someone just last friday take delivery of several hundred.  literally thousands of jewelry stores will sell you as much 22k - 24k gold jewelry and bars as you want.  the premiums via any of these mechanisms are virtually unchanged from before April 2013 (maybe a few cents more per ounce now than before... a meaningless difference).

if the CGSE were to have a physical default, that would be a real story.  but for now, there is no point in playing up a story that isn't there.  i'm a bigger believer in gold than most of you on this site, but it does not make a crap of difference when people talk about meaningless stories.  

there are real stories that imply that at some point there will be a shortage of gold, but not in the near term.  here's what i think is the most important... 2 of the biggest "supplies" of physical gold are drawing down fast... ETFs and mines.  it is  true that the pace of ETF drawdowns is currently faster than chinese and indians (and a variety of others) can buy physical gold.  the reason is that we (chinese) save in gold at the measured pace at which we earn income plus some pent up demand from when prices were soaring, while ETF holders liquidate en masse.  but an ETF drawdown today is bullish for tomorrow's gold price, as it simply means that one of the biggest supplies of available gold has just declined.  the other dwindling source of supply is mines.  although the world's miners are able to mine ~2% of current existing supply per year right now, mine supply is decreasing through time.  of all the gold that is available in the earth's crust at for which we currently have technology to mine, there's only between 20-50% remaining.  in other words, of all the gold that exists and can be mined AT ALL, there's at most 50% more than exists already as processed & mined gold (according to geologists and physicists).

it will be an interesting day when the ETF sales have been fully absorbed and when gold mines reach an inflection point... i call "peak gold" the point at which the rate of mining decreases despite advances in mining technology.  in the absense of a huge new discovery, the ability to extract from seawater, magma, the earth's core, asteroids, or the ability to create a supernova in a bottle... at the pace humanity is extracting gold from the earth mined supply will start decreasing within a couple of decades.  when that happens, gold prices in fiat terms will skyrocket, and gold will no longer just have its historical/traditional/current role as a store of wealth... it will be a proper "investment" that will also magnify your wealth as measured in anything else that is available in abundance (whether fiat money, base metals, reneweable energy, food, stocks, or anything else for that matter).

be patient and let the real stories develop.  forget about meaningless stories such as HK Merc and nonexistent physical shortage... these do not affect the thesis for owning gold, and in fact may tend to mislead some stupid people into buying gold for flawed reasons.  accumulate what you can at a pace that is sensible and without leverage, and think about what are sensible reasons for owning the stuff.

Mon, 05/20/2013 - 12:50 | Link to Comment JOYFUL
JOYFUL's picture

The Anti-AnAnonymous has arrived amongst us~

Rejoice...(or gnash your teeth...)

Straight talk from the Far-out East - at last!

Are all of Tyler's in-house foils being exposed one by one?

Mon, 05/20/2013 - 10:29 | Link to Comment e-recep
e-recep's picture

nice, a rothschild proxy goes to hell.

Mon, 05/20/2013 - 10:41 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Riddle me this: Who needs an exchange / middle man when you are dealing purely in physical, and not some confabulated pyramid scheme?  What value does an exchange add to the one who owns the physical product?

Mon, 05/20/2013 - 10:14 | Link to Comment TeamDepends
TeamDepends's picture

Last gasp desperation by the cartel.

Mon, 05/20/2013 - 10:15 | Link to Comment Pairadimes
Pairadimes's picture

A great buying opportunity.

Mon, 05/20/2013 - 11:33 | Link to Comment spine001
spine001's picture

"Silver appears to be getting whacked, what am I missing?"

When CBs start printing QE infinitum, the value of assets is determined more and more by what assets can produce and NOT by their intrinsic value unless you can leverage that intrinsic value. Given that what assets can produce is going down continuously as QE progresses (here remember that unless you think that the world is increasing its production of goods and services every time there is a CB QE, then the % of the produce that goes to the Asset goes down), and given that produce becomes more and more scarce, anything that can't produce anything, like gold, will go in value to zero (future cash flows created by Gold = 0). Why did it have value before, well simple, because, it could be used as collateral and leverage upon it to buy other cash flow producing assets. Thanks to the generosity of CBs QEs there is no need any more to hold GOLD as your collateral since they are allowing any garbage asset to be used as collateral (they have no choice whatsoever), holding GOLD becomes a drag if it ties up your capital, since you don't need it any more for leverage. This is related to another question that even my finance professor couldn't figure out the answer, why do we have negative real interest rates being accepted by investors. Well the answer is the same, it is the only way for them to leverage their capital on the way to QE infinity. They need to have it in a financial institution to be able to leverage it. And yes, they may loose it but if they can levarage 10:1 and extract 10% for the 10, they are doubling their capital every single year that this lasts!!! All they need to do is to diversify at the end of each year and start again but from a wider base. That is why they are willing to receive negative real interest rates. In the meantime we all like fools stay on the side lines bitching about Bernanke and just watch while our savings are completely wiped out.

I know it is incredibly unfair, but it is what is happening. What actions can you take? Exchange your PMs while they still have value for goods producing assets, whatever it is, focus on how can you provide value to your local community by transforming your PMs into assets and do it before their value goes up in a sudden spirol as it will without doubt at some time in the future. In the mean time, everything that can not be leveraged will go down in value --> deflation, until the music stops, at that point you will have hiperinflation and recession/depression. Where the only ones that have survived are the ones that leveraged/doubled up/diversified and started again until the end. Remember that as you do this, you coudl diversify into: Land; Weapons; Bullet production Machinery; Tractors, Tanks, etc.

Until next time,

Engineer

Mon, 05/20/2013 - 10:05 | Link to Comment Bindar Dundat
Bindar Dundat's picture

I think the run from paper is driving down the physical price.  One question. Can we out gun the banksters?

Mon, 05/20/2013 - 10:07 | Link to Comment Olephant
Olephant's picture

Not if they are backed up by the U.S armed forces.

Mon, 05/20/2013 - 10:10 | Link to Comment LawsofPhysics
LawsofPhysics's picture

The U.S. armed forces is a volunteer military.  Volunteers will not turn on their neighbors (especially those well-armed neighbors they see on a weekly basis at the shooting range), perhaps the paper-pushers should have thought this through a bit more carefully...

Mon, 05/20/2013 - 10:13 | Link to Comment astoriajoe
astoriajoe's picture

a regular paycheck represents a powerful incentive when unemployment is high.

Mon, 05/20/2013 - 10:17 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

The average GI Joe is paid in BennyBux, gets no special mortgage relief, has seen his/her VA benefits cut, and oh yeah is sent to fight unwinnable battles.

Earners will earn and looters will loot, that won't change.

Mon, 05/20/2013 - 10:54 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Are they being paid in PMs?  What happens when the paycheck doesn't buy shit again?  Again big fucking difference between theory and practice.

Mon, 05/20/2013 - 11:41 | Link to Comment spine001
spine001's picture

You guys/gals have missed all the informatio about robotic weapons!!! They don't need people any more, only very few controllers and programmers, the destruction machines can be set in full auto!

Robots are not science fiction any more!

A cruise missile was a robot, run by a very simple microprocessor with only a few kilobytes of RAM, now they can use 16 cores with Terabytes of RAM to guide anything. REmote controller are only needed for political reasons, those could evaporate in a flash.

Full battleships could be run robotically, the limit today is anybody's imagination

Until next time,

Engineer

Mon, 05/20/2013 - 15:05 | Link to Comment MagicHandPuppet
MagicHandPuppet's picture

Sounds like you have a thoery about practice to me.

Mon, 05/20/2013 - 10:18 | Link to Comment pazmaker
pazmaker's picture

LoP, I like your post and think you are usually on the money, but I think your wrong on this one.

 

There are so many young naive brainwashed soldiers, marines etc I wouldn't put it past them to blindly follow orders.   Also the opportunity for them and their families to be taken care of is a strong motivator.

Mon, 05/20/2013 - 10:52 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Are there not many old, wiser veterans?  There sure as hell are in my neighborhood.  Where exactly are they going to "keep their familes safe" again.  Please.  grow up.

Mon, 05/20/2013 - 11:05 | Link to Comment pazmaker
pazmaker's picture

Yes, I am one of them!(older wiser veteran), but we were talking about our current military who are not mostly older and wiser.  How they going to keep their families save and fed?  On a military compound that's how.  I personally know it has been done before at Fort Bragg, NC for certain military units.

  No need for personal attacks by telling me to grow up because I disagree with you.  You probably would find we think very much alike.  Peace

 

PS: will they pay in PM's?   Most likely not, but they will be fed and clothed and will not go hungry as lon as they support the pwers that be.

Mon, 05/20/2013 - 11:17 | Link to Comment LawsofPhysics
LawsofPhysics's picture

So am I, and so are many of the members of my farming Co-op.  fed by whom? Clothes from whom?  If the bullshit paper we are getting paid by our commanders becomes wortheless.  All bets are off delivering any food to anyone outside of this Co-op.  Prepare pazmaker, it will come to this.  Again, theory and practice are two different things.

Mon, 05/20/2013 - 14:01 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Oath Keepers and others having NO influence on things?  Seems like there was a growing awareness of what was happening in this country and a conscious move on the part of those who thought about such things NOT to be a part of it.

Mon, 05/20/2013 - 10:54 | Link to Comment i-dog
i-dog's picture

+1

The only military "friends" I've spoken to ALL say that they will "follow any lawful order to shoot whomever". I suspect they'd especially relish the opportunity for a "lawful" order to shoot me!

They certainly followed Roosevelt's order to tear up the Bonus Army in Washington, DC in 1932 (ie. similar conditions as now) ... headed by McArthur, Patton and Eisenhower with tanks, chemical weapons, and a cavalry charge with fixed bayonets!!!

Mon, 05/20/2013 - 10:56 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Lawful orders, riiiiiggghhhht.  This is not Roosevelt's time.  When the dollar collapses and buys nothing, what will be the motivation for these folks again?  Will they be paid in PMs?

Mon, 05/20/2013 - 13:04 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

I think the USSR military experience post-collapse back in 1991 is a useful example here.  There's a reason a whole lot of them turned mafia, gotta go where the food/clothing/shelter is.  

Mon, 05/20/2013 - 13:12 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Great point.  I was in Moscow in 1991 as a teenager on a student "diplomat" trip, and we met plenty of ex-military who crowded the tour buses to sell whatever they could get their hands on for the hard currency* we had (*it's all a matter of degrees here, I guess). 

Mon, 05/20/2013 - 10:44 | Link to Comment Lebensphilosoph
Lebensphilosoph's picture

The last time I checked, the militarized police swarming through Boston were also 'volunteers'.

Mon, 05/20/2013 - 11:18 | Link to Comment LawsofPhysics
LawsofPhysics's picture

It will be "neighborhood" dependent, I don't live in one of those "slums".  Yes, the slums will be overrun with government goons.  Hint; don't live there.

Mon, 05/20/2013 - 14:08 | Link to Comment cynicalskeptic
cynicalskeptic's picture

I expect the troops will be where the rioting is.  

Used to think the FEMA camps and such were bad dreams.... no so much anymore.    From a purely pragmatic pov, what happens when you can't pay off the unemployed hungry masses anymore?   What happens when there's no moer unemployment, welfare or food stamps?  

We missed the chance to set up something like the WPA or CCC to put people to work in exchange for wages.  We simply paid people NOT to work for as long as possible, until the benefits ran out and they officially gave up looking for work.  They're stillout ther eand still unemployed, even if not counted.  Many are now collecting disability - those numbers have shot up in direct correlation to the unemployed.

But eventually Rome couldn't afford the bread and circuses.  We can't keep it up forever.   The question is do we have WWIII first - neverending war in the Middle East to try and prop up the $US for a little longer and put the unemployed to work or do we descend into chaos first, unable to afford another war?

Mon, 05/20/2013 - 10:15 | Link to Comment JustObserving
JustObserving's picture

Rs. 180 invested in gold in 1965  is worth Rs 90,000 today.  Keep inflation under control, Mr Chidambaram, and people will stop buying gold.

India has been importing an average of 800 tonnes of gold for the past decade.  Those 8000 tonnes, bought at prices as low as $300, have added immensely to the wealth of the country.  Get on your knees and thank those Indians, Mr Chidambaram.

Mon, 05/20/2013 - 11:01 | Link to Comment rottor
rottor's picture

Indians are pouring their hard earned money into unproductive metal, instead of building roads and manufacturing, no wonder it is one of the poorest nations in the world

 

Mon, 05/20/2013 - 11:26 | Link to Comment JustObserving
JustObserving's picture

USA is spending trillion dollars on the military every year - about 47% of global spending.  And $4 to $6 trillion on  wars in Iraq and Afghanistan.  And trillion dollars on 30,000 drones to patrol American skies.

That is why USA is so rich.

Mon, 05/20/2013 - 11:30 | Link to Comment rottor
rottor's picture

military doesn't produce economic output, same as gold ... but military offers protection of US economic interests, which cannot be said of gold

 

Mon, 05/20/2013 - 13:13 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Yes, US economic interests in the opium poppy trade, the better to dope down its population with, my little pretty.

Mon, 05/20/2013 - 13:51 | Link to Comment rottor
rottor's picture

US Economic interest in the USD issuance seigniorage

 

.. pretty, but not little, thanks for the compliment anyway

 

Mon, 05/20/2013 - 11:53 | Link to Comment tbd108
tbd108's picture

Largely they are poor because the government is run by crooks like the finance minister and if you listen to people like him you would stay poor and he would stay rich and still have poor roads.

Mon, 05/20/2013 - 12:11 | Link to Comment Dubaibanker
Dubaibanker's picture

Poor people cannot rely on their Govt nor women rely on their husbands for whom dowry given by the woman's father is the only hope if the husband does not care for her, are traditions that have been there for centuries, which have made it a 'religion' in poorer nations like China and India to accumulate gold at any happy occassion, be it a birth, wedding or a child's baptism like ceremony. It is so ingrained in thier culture that price movements only make them flood in more heavily because gold demand in India is price inelastic anyways due to the factors above.

Mon, 05/20/2013 - 12:23 | Link to Comment rottor
rottor's picture

I know it is because of cultural/religion reason, but this cultural/religious habit makes them poor, they are giving away products of their hard work for a metal that lies in the coffer or is carried on as a jewellery

if they exchanged a gold bar for a tractor, they'd much better off

 

Mon, 05/20/2013 - 17:00 | Link to Comment debtandtaxes
debtandtaxes's picture

And that is where North America is heading as the corruption that forces Indian citizens to protect themselves by investing in unproductive metal moves worldwide.

Mon, 05/20/2013 - 10:05 | Link to Comment Badabing
Badabing's picture

they can't buy it from the HKMEx any more!

Mon, 05/20/2013 - 10:06 | Link to Comment achmachat
achmachat's picture

does this go in the same vein as: 

"it's confirmed when officially denied"?

so... when the finance minister begs you not to buy something, you should sell your goat and cat to go and buy it!

Mon, 05/20/2013 - 10:36 | Link to Comment JustObserving
JustObserving's picture

In India, it is your holy cow who is considered a family member.  Goats and cats - not so much. No gold in goats and cats. No silver either.

Mon, 05/20/2013 - 12:26 | Link to Comment tbd108
tbd108's picture

Indians do not have the wealth to fatten cows with 10 times the grain that you get back in meat protein. Also the cows give them milk and curds to eat. Not eating them is an extremely practical choice. Finally, the "holy" business has more to do with respect for life generally.

Mon, 05/20/2013 - 10:07 | Link to Comment Yellowhoard
Yellowhoard's picture

Cue Kevin Bacon scene from the end of Animal House.

? 0:20? 0:20
www.youtube.com/watch?v=zDAmPIq29ro
Jan 31, 2009 - Uploaded by jovichick7908
Hilarious Kevin Bacon scene from the end of 'National Lampoon's Animal House' [Note: I ...

Mon, 05/20/2013 - 10:06 | Link to Comment unwashedmass
unwashedmass's picture

 

No. Our wonderful planners are trying to put us, the US, flat on our collective asses --- as the vast majority are peasants, and the vaunted 1% will be leaving for other shores as the collapse looms.  They literally don't care they are destroying the country, and the sooner we all start to understand this, ..... but we won't.....

because the vast majority of peasants still believe the government is there to "help" them. 

Mon, 05/20/2013 - 10:07 | Link to Comment glenlloyd
glenlloyd's picture

More yacking from the idiots. I would guess that telling people to refrain from buying gold will have the opposite effect, especially if the govt intends to look for new ways to curtail purchases.

Mon, 05/20/2013 - 10:09 | Link to Comment duo
duo's picture

If it gets cash our of bank accounts and into the economy, what is so bad about that?  The gold dealers don't just sit on the money, do they?

Mon, 05/20/2013 - 10:07 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Supreme irony is the Fed Folk taking the Hunt Bros. to the woodshed in the 80's, vowing "never again!" and laying seige to the precious metals, and now 30 years later, we have 3 billion Hunt Brothers.

Mon, 05/20/2013 - 10:44 | Link to Comment swissaustrian
swissaustrian's picture

Basicly none of the small buyers in Asia are using leverage, try stopping them with margin calls.

Also try to convince an Indian girl to give back her wedding presents...

Mon, 05/20/2013 - 10:08 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Stop "begging" and start "confiscating", I mean, after all it has worked out so well in the past. < sarc off >

Mon, 05/20/2013 - 10:10 | Link to Comment Quinvarius
Quinvarius's picture

Then let the price go up naturally moron.  Cripes.  How in the F did this guy get his job with zero market knowledge?  The money supply is blowing up 100% per year over the 2008 total and the price of gold is up 50% in 40 years.  Stop being stupid. 

Mon, 05/20/2013 - 10:09 | Link to Comment Gringo Viejo
Gringo Viejo's picture

It's just a matter of time. And time is short.

Mon, 05/20/2013 - 10:09 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

What's that flashing?

We're losing a deflector shield.

Mon, 05/20/2013 - 10:10 | Link to Comment Herodotus
Herodotus's picture

He could solve his problem by peging the rupee to gold and makeing it convertible into gold by presenting it at any bank.

 

 

Mon, 05/20/2013 - 10:24 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Where would the Banks get all the Gold it's citizens would demand when they turn in all their paper for physical Gold on the day that took effect?

Mon, 05/20/2013 - 10:31 | Link to Comment Captain Benny
Captain Benny's picture

Well thats why they must peg the price MUCH MUCH MUCH higher.... ie: in the US it would be $5000-25000 USD if such a peg were introduced.

Mon, 05/20/2013 - 10:10 | Link to Comment Rory_Breaker
Rory_Breaker's picture

I hate this government. And what I hate more is the morons who agree with what the FinMin is saying.

Mon, 05/20/2013 - 10:10 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

You really can't make this shit up...its semi-hysterically funny.

Mon, 05/20/2013 - 10:11 | Link to Comment SheepDog-One
SheepDog-One's picture

As long as the Maniacal Monetizers keep flooding in more worthless paper, the demand for PM's, firearms, etc will keep rising. 

Mon, 05/20/2013 - 10:14 | Link to Comment Inthemix96
Inthemix96's picture

BREAKING NEWS,

"Indias Population Tells Indias Finance Minister To Fuck Off"

Mon, 05/20/2013 - 12:30 | Link to Comment tbd108
tbd108's picture

I just wish the American population were so inclined.

Mon, 05/20/2013 - 10:19 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

yesterday at 4 pacific coast time i peeked to see what Silver was doing pre Asia and saw the Globex bullshit smash... add this story to the mix and all i can do is sit back and laugh at the total joke all markets have become as the sociopath bankers flail away trying to preserve their doomed debt based currecy paradigm...

those who r shook by these phony paper price manipulations so blatant in nature were never in for the right reasons....this is a war and the weak need not apply...

every ounce purchased since 2007 sits securely in my possesion 100% free of counterparty risk....the TRUE VALUE of Physical Gold and Silver we dont even know yet but bet your fucking asses its WAY FUCKING MORE than the debt coupon dollar paper price!!!

ya'll mother fuckers can fold, or chill the fuck out and get some mo' metal....thats what im doin...

 

FUCK YOU BERNANKE  & ALL YOU OTHER SOCIOPATH BANKER COCKSUCKER MOTHER FUCKERS...I'M RIDING ON ALL YA'LL.....

Mon, 05/20/2013 - 10:37 | Link to Comment emersonreturn
emersonreturn's picture

KS, you're right, the Bankocracy are scrambling to beat and collect.  panic only if one wants to play their mullet.

Mon, 05/20/2013 - 11:31 | Link to Comment Snoopy the Economist
Snoopy the Economist's picture

+100

Mon, 05/20/2013 - 10:14 | Link to Comment aleph0
aleph0's picture

 

 

Next up ....  Bernanke will soon be accusing us all .... of being Barbarians ... at the gate.

Mon, 05/20/2013 - 10:20 | Link to Comment Divine Wind
Divine Wind's picture

 

 

 

Simple Response:

 

No, I will not control my passion for gold.

Mon, 05/20/2013 - 10:21 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Paper Gold and Paper Silver will continue to fall until both have no value at all. The only real question is when Physical Gold and Physical Silver for delivery will disconnect value discovery from the Paper Scam.

Mon, 05/20/2013 - 10:22 | Link to Comment stateside
stateside's picture

Below is a typical press release now a days.  Gold project uneconomical at these prices so no development will occur.  Glad the tungsten mines are still being developed or we would have a real gold shortage on our hands.

stateside

Toronto, Ontario CANADA, May 17, 2013 /FSC/ - California Gold Mining Inc. (CGM - TSX Venture), ("California Gold" or the "Company") announces that it has filed a technical report titled "Technical Report on the Preliminary Economic Assessment of the Dingman Gold Project, Madoc, Southern Ontario, Canada" prepared by Roscoe Postle Associates Inc. ("RPA") dated April 30, 2013 on SEDAR that constitutes a preliminary economic assessment (as defined by NI 43-101) (the "Preliminary Economic Assessment"). The Preliminary Economic Assessment concludes, in part, that the life of mine plan for the Dingman Project indicates that mining and processing of 10.64 Mt at an average grade of 0.92 g/t Au with a mine life of five years, has the potential to produce approximately 290,000 ounces of gold. RPA estimated that the break-even pre-tax undiscounted cashflow for the Dingman Project could occur at a gold price of approximately US$1,650 and that using a gold price of US$1,825, the Dingman Project could achieve an internal rate of return of 15%. At a base gold price of US$1,500/oz, the Preliminary Economic Assessment concluded that the Dingman Project is not expected to be economically feasible.

"Gold prices are fluctuating. Under the right economic conditions the Dingman Project could, upon permitting approval and funding, provide a near term production scenario. The Company will be reviewing its options and permitting opportunities," said Mr. Michael Churchill, President of the Company.

The Preliminary Economic Assessment is based upon the mineral resource estimate contained in the technical report prepared by Scott Wilson Roscoe Postle Associates Inc. dated as of January 31, 2011 and filed on SEDAR on February 8, 2011. The Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Economic Assessment will be realized. The basis of the Preliminary Economic Assessment included conventional open pit mining carried out by contractors, and processing of 6,100 tonnes per day by gravity and flotation concentration, followed by leaching. Key economic inputs included a gold price of US$1,500/oz, metallurgical recovery of 92.3%, initial capital costs of C$152 million, and life-of-mine operating costs averaging C$27 per tonne milled. Total cash cost was estimated to be US$1,071, and total production cost was estimated to be US$1,573. The above information reflects only part of the information set out in the Preliminary Economic Assessment which is meant to be read as a whole. Readers are encouraged to review the entire Preliminary Economic Assessment on SEDAR.
Eric Moeller, RPG (SC374), is the Qualified Person under NI 43-101 who has reviewed the contents of this release.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of California Gold contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause California Gold's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding the information provided by the Preliminary Economic Assessment and the Company's intentions regarding its plans for the Dingman Project. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward looking statements. Any factor could cause actual results to differ materially from California Gold's expectations. California Gold undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:

Michael Churchill
President
647-977-9267 x101

Martin Shefsky
Chief Executive Officer
647-977-9267 x222

Website: www.caligold.ca

To view this press release as a PDF, please click on the following link:
http://www.usetdas.com/pr/californiagold05172013.pdf

Mon, 05/20/2013 - 10:27 | Link to Comment Buzzworthy
Buzzworthy's picture

Tylers ... Paper is not supressing PMs.  Paper contracts are being sold off because they cannot be filled.  The sooner you and all the other goldbugs realize this you will begin to understand what is actually happening.  There will not be a rebound in the paper gold price.  Its only down from here until the revaluation comes.

Mon, 05/20/2013 - 10:33 | Link to Comment Vooter
Vooter's picture

We count our PMs in ounces, not dollars or any other counterfeit currency. What don't you get?

Mon, 05/20/2013 - 10:34 | Link to Comment fonzannoon
fonzannoon's picture

"Paper contracts are being sold off because they cannot be filled"

I think and hope you are right. That has been my thinking all along. I just hope I have not deluded myself by thinking this.

Mon, 05/20/2013 - 10:56 | Link to Comment Quinvarius
Quinvarius's picture

That only makes sense in terms of an exchange default where prices are rigged so badly that the only solution to a massive short sqeeze and actual price discovery is to blow up the exchange.

The issue with that is that it is a global market.  The honest exchange will be the last one standing and it will have all the contracts as well as true price discovery.  They pass that book all day and all night.  Where it stops is where the market price will be.  For example, if I was cashed out in HK last night, I could buy back in the USA today with little friction.  The fraud cannot be maintained as long as one honest exchange stands. 

Even if some exchange did some liquidation sale only nonsense, it would be a lateral move to another exchange with delivery.  That liquidating exchange would merely die as the buys continued elsewhere.  They have no control over the global market anymore.  The ponzi is unprepared unable to cope with the global reality they have created.

Mon, 05/20/2013 - 11:14 | Link to Comment InTheLandOfTheBlind
InTheLandOfTheBlind's picture

does kinda feel this way

Mon, 05/20/2013 - 10:59 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Please, our holdings are not "counted" they are weighed.  I have not purchased any physical since 2004.  Bring on the "revaluation" motherfucker!  Standing by with dry powder...

Mon, 05/20/2013 - 10:28 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

instead of begging the Indian people, he should be on a plane en route to Dulles with a limo waiting for him to take him to 20th St. & Constitution Ave. so he can drop to his knees and plead with Bernanke to stop.

Yellen can't watch though, or she has to pay $1000.

 

Mon, 05/20/2013 - 10:37 | Link to Comment Monedas
Monedas's picture

Racism has nothing to do with skin color .... some of our Aryan Cousins of the Sub-Continent .... are darker than molasses .... but they are hoarding more gold than Ugandans or Detroitans !   They know how to ride on the back of the elephants .... not coiled up in the elephants trunk .... even African elephants don't like Africans ! 

Mon, 05/20/2013 - 11:26 | Link to Comment Skateboarder
Skateboarder's picture

The further south in India you go, and the longer you stay there, the darker you and your kids will get. Simple as that lol. Most Indians are Aryan or Aryan/Dravidian mixes.

Mon, 05/20/2013 - 10:40 | Link to Comment Son of Loki
Son of Loki's picture

Check out the gold stores in HK....OMG!...incredibly busy with oild and ong Chinese, Arabs, Indians, Pakis, Africans, abd on an don buying as much as they can carry out...all 24K dragons, peacocks, etc.....pretty incredible.....physical reality is very different then the paper market.

Mon, 05/20/2013 - 10:43 | Link to Comment fonzannoon
fonzannoon's picture

link?

Mon, 05/20/2013 - 10:51 | Link to Comment Son of Loki
Son of Loki's picture

HK gold retailers overwhelmed by mainland shoppers

 

 

http://www.chinadaily.com.cn/cndy/2013-05/02/content_16466595.htm

 

It's also on news channels, even BBC had it on the other day.

Mon, 05/20/2013 - 11:14 | Link to Comment Handful of Dust
Handful of Dust's picture

Holy Moly, get this:

 

Chinese housewives buy 300 tons of gold

May 2, 2013, 1

 

 

It’s not just housewives in China. The China Daily also reported Thursday that Hong Kong retailers were overwhelmed by all sorts of shoppers from the mainland seeking cheap gold over the three-day May Day holiday, with long lines outside gold shops, blocking streets and sidewalks. That echoes what happened in the wake of that historic gold drop on April 15, with shoppers reportedly swamping jewelry stores across Asia. Writing for the South China Morning Post on April 16, George Chen, whose penname is “Mr Shangkong,” wrote of China’s love affair with the shiny stuff.


 

http://blogs.marketwatch.com/thetell/2013/05/02/chinese-housewives-buy-3...

Mon, 05/20/2013 - 10:40 | Link to Comment Lebensphilosoph
Lebensphilosoph's picture

I was about to say somethign less than flattering about Indian politicians, but then I realised that would constitute discrimination based upon both race and an affiliation, namely one with the Indian government.

Mon, 05/20/2013 - 10:59 | Link to Comment Uncle Remus
Uncle Remus's picture

Douche in Delhi.

Mon, 05/20/2013 - 10:44 | Link to Comment Mad Mohel
Mad Mohel's picture

Maybe they should challenge that prick to stop eating curry, then maybe we can discuss the gold situation. Dirty bastard.

Mon, 05/20/2013 - 10:51 | Link to Comment skm
skm's picture

http://in.finance.yahoo.com/news/chidambaram-more-steps-cut-gold-134555444.html

how does increasing current account deficit limit monetory easing?

Mon, 05/20/2013 - 11:11 | Link to Comment adventure007
adventure007's picture

FUCCCCCCCCCCCCCCKKKKKKKKKKKKKKKKKKKKKKK YOU CHIDABARAM. I am going to heat the metal up and shove it in your ass.

 

 

Source: Wikipedia

More and more households should be encouraged to save in financial instruments rather than in gold.

- P. Chidambaram, Finance Minister, 16 Aug 2012

And today, he got support from the industry.

The government is planning and CII is fully supportive of better incentive for investment in mutual funds and equity so that people do not invest that much money in gold which could also help in improving balance of trade.

- Adi Godrej, Confederation of Indian Industry (CII) president, 28 Aug 2012

 

Mon, 05/20/2013 - 11:18 | Link to Comment cloudybrain
cloudybrain's picture

its shaking now..

Mon, 05/20/2013 - 11:37 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Gold is the only defense that the common man has against powerful government.

 

Mon, 05/20/2013 - 11:50 | Link to Comment spine001
spine001's picture

Despite what I said, what Stuck on Zero says is absolutely true. There is NO other way to keep the value of your savings if you have excess and don't have access to reinvest it in productive assets... It is a sad reality, since it is also true that the value of what you have is fully dependent on the capacity it has of feeding and clothing you in the future...

 

Until next time,

Engineer

Mon, 05/20/2013 - 11:41 | Link to Comment andrewp111
andrewp111's picture

Obviously, India's politicians are worried about the exchange value of the Rupee. The Rupee is a controlled currency and cannot be exported, so foreign transactions to import gold require foreign currency. India must be having a depletion of foreign exchange reserves.

 

China has the opposite problem. China needs its people to buy gold instead of buying empty apartments as a store of wealth.

Mon, 05/20/2013 - 11:47 | Link to Comment They Tried to S...
They Tried to Steal My Gold's picture

Indians are buying gold and hedging positions with Chutney...

Mon, 05/20/2013 - 12:11 | Link to Comment Carnegie_IB
Carnegie_IB's picture

why would a finance minister advise the citizens about investment decisions? since when is a government operation qualified to offer investment advice. this cannot be a good thing, or in the best interest of the citizens if they were to take that advice. EOD one needs to make independent investment decisions, regardless of who's opinion it is. Everyone has an opinion. 

Mon, 05/20/2013 - 12:42 | Link to Comment JPMorgan
JPMorgan's picture

Way to go India.

Those chaps will never stop buying gold, for them it exactly is a TRADITION.

I think this is all going terribly wrong for bullion banks, the paper price take downs are not having the desired effect.

Mon, 05/20/2013 - 12:42 | Link to Comment Volaille de Bresse
Volaille de Bresse's picture

They're panicking... GOOD!

Mon, 05/20/2013 - 14:26 | Link to Comment auric1234
auric1234's picture

Your government told you not to own gold. Is there a better reason to buy some?

 

Do NOT follow this link or you will be banned from the site!