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Gold Smuggling Increases 7x In India And Surpasses Illegal Drug Trade

Tyler Durden's picture





 

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

The absurd “War on Gold” that India has launched this year has been covered many times on this site. From the moment I read about it, it was obvious that if Indians want their gold, the Indians will have their gold. You can’t break thousands of years of tradition and culture because of the ignorant whims of a few bureaucrats.

Earlier today, Reuters published an article detailing the extent to which Indian smugglers will go in order to bring the money of kings into the country. This includes hiding it in underwear, swallowing it whole and even painting gold staples gray. What is most disturbing is the lengths authorities are willing to go to in order to stop a supposedly free people from buying a brick of metal. From Reuters:

(Reuters) – Indian gold smugglers are adopting the methods of drug couriers to sidestep a government crackdown on imports of the precious metal, stashing gold in imported vehicles and even using mules who swallow nuggets to try to get them past airport security.

 

Stung by rules imposed this year to cut a high trade deficit and a record duty on imports, dealers and individual customers are fanning out across Asia to buy gold and sneak it back into the country.

 

Sri Lanka, Thailand and Singapore are the latest hotspots as authorities crack down on travelers from Dubai, the traditional source of smuggled gold.

Stop one and another will rise. As always.

In a sign of the times, whistleblowers who help bust illegal gold shipments can get a bigger reward in India than those who help catch cocaine and heroin smugglers.

Because that makes a so much sense.

“There has been a several-fold increase in gold smuggling this year after restrictions from the government, which has left narcotics behind.”

 

That suggests official data showing a sharp fall in gold buying, which has helped narrow India’s current account gap, may significantly underestimate the real level of gold flows.

 

Last week, Sri Lanka limited the amount of jewellery its residents can take out of the country and it will try to monitor whether they bring it back. Pakistan banned all gold imports in August for a month as it believed much was being smuggled on into India.

 

Indian gold premiums have soared to $130 an ounce over London prices due to the supply crunch, compared with about $2 an ounce in Hong Kong, Singapore and Thailand.

 

In June, a passenger flying from Dubai was caught at New Delhi airport with about 755 grams (1.7 lbs) of solid gold staples painted grey. Officials stopped the man because the cardboard boxes he was carrying were stapled far more than seemed necessary.

Simply genius.

“We are trying to plug all the loopholes. We have strengthened our anti-smuggling staff and installed door metal detectors,” said S.A.S. Navaz, deputy commissioner of customs in the south Indian city of Kochi. “We are spending sleepless nights.

Sleepless nights because citizens want to buy a piece of yellow metal. You might have bigger problems than gold champ.

In an effort to change that, Mumbai customs offers a reward of up to 50,000 rupees per kg of bullion seized for informers in gold smuggling cases. Cocaine and heroin informers get only up to 40,000 rupees and 20,000 rupees respectively.

Idiots.

Full article here.

 


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Wed, 12/04/2013 - 23:20 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Once again, thank the Good Lord for the NSA helping us stop all of this terrorist activity abroad.   We must stop them from buying gold over there, or we'll have to stop them from buying gold over here.  The South African yellow coin trade is especially troubling.  

Wed, 12/04/2013 - 23:26 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Serious threat to National Security. If they couldn't continue to counterfeit paper currency they would actually have to work for a living. We can't have that now can we?

Wed, 12/04/2013 - 23:39 | Link to Comment Pladizow
Pladizow's picture

Why not simply fly to India, looking like Mr.T?

Wed, 12/04/2013 - 23:47 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

According to the author it would be safer to hide it in cocaine or heroine...

Wed, 12/04/2013 - 23:59 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Pretty soon it will come down to drugs, gold and our money.

1) Drugs, well, because we cannot have any of that!

2) Gold, even worse than drugs!  National Security and all...

3) It's not our money anyway...

EDIT:

GUNS fit into this equation somewhere, but I never got far enough into math to tell exactly where.

Thu, 12/05/2013 - 03:13 | Link to Comment dryam
dryam's picture

Governments are not worried about a barbaric relic.

What governments are worried about is the truth.  Gold is a revealer of truth (when it's not manipulated) & thus, the arch enemy of the contrived world we live in.  The system falls apart at some point as the lies continually increase in an exponential fashion to cover all of the previous lies. 

 

Thu, 12/05/2013 - 03:51 | Link to Comment PT
PT's picture

No, I've already told you.  Just because they banned gold, doesn't mean they don't want you to import gold.  They know the Indians will continue to import gold.  They want the Indians to continue to import gold.  But now the govt doesn't have to pay for it.  They just confiscate it as they find it.

Thu, 12/05/2013 - 06:02 | Link to Comment zhandax
zhandax's picture

The truth will come out.  Only the cost goes up.

Thu, 12/05/2013 - 06:04 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Wake me when they start smuggling bitcoins......cause smuggling gold is pretty normal.

 

They're been doing that crap for years now.

Thu, 12/05/2013 - 06:56 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

have you heard of the latest rival to Bitcoin? It has all the properties of Bitcoin except it can, by virtue of really smart technology called metallurgy, be physically held in your hand!!!

They call it CoinCoin. Its made of precious metals.

Thu, 12/05/2013 - 10:50 | Link to Comment mick_richfield
mick_richfield's picture

I've heard of this.

This "physicality" property is interesting.  But who implemented it?  How do we know we can trust it?

Aren't there some of these "metals" that can spontaneously change into other "metals" ?

Seems confusing....

Thu, 12/05/2013 - 11:41 | Link to Comment TwoCats
TwoCats's picture

You're confused.  I think you mean New Gold.

Thu, 12/05/2013 - 14:05 | Link to Comment MarsInScorpio
MarsInScorpio's picture

Mick:

 

I think many readers missed your "metals" change line.

 

Yes, it's true - there is a high degree of certainty that the gold held at the FRBNY, and at Ft. Knox, has mysteriously changed into tungsten with a thin remenant of the original metal appearing as a plating on the outside surface of the tungsten for the effect of looking like solid gold bricks . . . no one is at fault for stealing the gold because it occured from the inside and moved outward within the bricks - therefore, no one could see the changes as they took place.

 

Everyone has "clean hands" because, in effect, it just "vaporized" . . . which means there will be NO investigation or criminal charges filed against anyone.

 

To avoid panic, the FED has prohibited an audit and testing because the general public wouldn't understand how alchemy has, in fact, proved to be true when using the secret incantations of the FED chair, who like the High Priest of the Temple of Moses, and Solomon, utters it once annually in the presence of his/her heir-apparent while ordering the release of goats just outside the NY city limits to carry off the sins of the banksters.

 

(I hate to think anyone fails to see the /sarc of this post, but this is a /sarc post, in case you didn't.)

-30-

 

Thu, 12/05/2013 - 18:23 | Link to Comment BigJim
BigJim's picture

-1 for the sarcasm. Shame on you!

Thu, 12/05/2013 - 20:02 | Link to Comment mick_richfield
mick_richfield's picture

Oh yeah.  We don't use sarcasm around here.  Right.

Thu, 12/05/2013 - 06:56 | Link to Comment Peter Pan
Peter Pan's picture

If the Indian authorities put as much energy into fighting corruption in their country they just might realise their potential.

Instead they fight the importation of real money.

The funny thing is that rupee means wrought silver.

Thu, 12/05/2013 - 07:15 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I'm forwarding your idea to Eric Holder.

 

I doubt he'll do anything.....but who knows?

Thu, 12/05/2013 - 11:16 | Link to Comment ejmoosa
ejmoosa's picture

Had they put as much energy into growing their economy, they would not be concerned about gold or silver.

Thu, 12/05/2013 - 06:15 | Link to Comment Crash N. Burn
Crash N. Burn's picture

"They want the Indians to continue to import gold."

 

 Actaully they want Indians to buy the One Banks' paper-called-gold. Won't work 'cause you can't wear GLD. End result of trying to suppress the Indain gold market? Decoupling - official gold price - and Indian gold price.

 

 Stay tuned sportfans, this should get interesting.

Thu, 12/05/2013 - 08:36 | Link to Comment DanDaley
DanDaley's picture

Where's Golfinger when you need him...just turn that Rolls Royce into gold, pay off the customs officials and, voila.

Thu, 12/05/2013 - 08:26 | Link to Comment SAT 800
SAT 800's picture

D+G=(-)M+Guns=you're fucked; Govt. wins. I think that's the equation.

Thu, 12/05/2013 - 01:21 | Link to Comment fonestar
fonestar's picture

My Bitcoins have never been soiled by poop while crossing Kashmir.

Thu, 12/05/2013 - 03:21 | Link to Comment Double.Eagle.Gold
Double.Eagle.Gold's picture

One thing I don't understand about bitcoins,

how do you use them without electricity?

Thu, 12/05/2013 - 05:49 | Link to Comment PT
PT's picture

Same way you use your credit card without electricity.

Better hope you got enough warning so you can get to the ATM in time. 

Thu, 12/05/2013 - 06:22 | Link to Comment zhandax
zhandax's picture

The ugly truth.  Bitcoin is worthless when the lights go out.      http://www.youtube.com/watch?v=nEzz4QTvItA

 

Thu, 12/05/2013 - 06:33 | Link to Comment PT
PT's picture

And magically comes back on again when the lights come back on.  Granted, this gives PMs the advantage over bitcoin, but just as some don't know their tungsten from their gold from their fools gold, some don't know how to network computers or how to turn on a generator.  Something tells me that the lights will only go off for the little people.  Why would TPTB deprive themselves of electricity and WiFi?

On the plus side, if the power goes off then you won't be able to swap your last bitcoin for the last loaf of saw-dust encrusted bread.  You may be tempted to swap your last ounce, if you're hungry enough.

In the mean time, you can't deny that bitcoin has been a great speculation.  Did tulip bulbs crash and then rise again?  How many times now has bitcoin crashed and then re-risen? 

Note, I am not pro- or anti- bitcoin.  I just want to see better arguments.  And on that note, where is the source code?

 

Thu, 12/05/2013 - 06:59 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

the grid can go down because when the shit hits the fan, you will have factions of TPTB that want to or have to turn on other factions of TPTB, so the shit will really hit the fan - it wont be a neat little orchestrated mini collapse

 

Thu, 12/05/2013 - 08:30 | Link to Comment SAT 800
SAT 800's picture

You want better arguments? Read Euclid's Elements; all the arguments are perfect.

Thu, 12/05/2013 - 12:14 | Link to Comment scrappy
scrappy's picture

Balderdash.

Thu, 12/05/2013 - 08:29 | Link to Comment SAT 800
SAT 800's picture

And they're not worthless before the lights go out? now, that's a revelation. I never thought I'd live to see so much silliness on the part of grownups.

Thu, 12/05/2013 - 11:18 | Link to Comment ejmoosa
ejmoosa's picture

Dude:  I need to charge up my laptop

Clerk: That's .02 bitcoins in advance.

Dude: I can pay you as soon as I charge my laptop,

Clerk: Sorry, you must pay in advance.

Dude: I can't

Clerk: You're fucked. Next!

 

Fri, 12/06/2013 - 14:26 | Link to Comment PT
PT's picture

Here, let me use my credit card ... What?  What???

... and this is the last loaf of bread in town.  That guy over there offered me his stash, his Rolex and his daughter for it but the other guy offered to not give me 3 pieces of high speed lead.  The next flour truck isn't due to arrive until next week, but that is assuming it manages to negotiate all the mobile speed humps on the way here.  I'd lend you my truck and you could pick up some more flour yourself but I've run out of diesel.

Thu, 12/05/2013 - 06:43 | Link to Comment Martel
Martel's picture

 

Bitcoin and India would be a perfect match.

  • high inflation
  • capital controls
  • punitive taxes on gold
  • punitive taxes on everything
  • lots of unbanked people
  • relatively good smartphone penetration
Thu, 12/05/2013 - 11:16 | Link to Comment ejmoosa
ejmoosa's picture

Your bitcoins have not even faced a real test yet....

Thu, 12/05/2013 - 11:56 | Link to Comment TwoCats
TwoCats's picture

Hi Fonestar, keep up the good fight, man.

As I see it there have been three main positions on bitcoin on ZH lately:

1) Bitcoin is a ponzi/pyramid/bubble/tulip scheme, and will permanently crash soon.

2) Bitcoin is a threat to central bankers, and is going to be squashed by TPTB

3) Bitcoin is going to become the world's reserve currency.  Anyone who buys now will be rich!

I find myself thinking that TPTB will try to suppress bitcoin a bit more actively when it gets to a larger market cap.  I honestly don't know how that would turn out.

Try this one, Fonestar:  What would happen to Bitcoin if TPTB closed BitPay's bank account, along with any similar payment services.  This wouldn't require a law or regulation, just for the banks to declare that bitcoin businesses are too "risky" to do business with, so it could happen at any time.

DISCLOSURE: I own >10 BTC.

Thu, 12/05/2013 - 18:26 | Link to Comment BigJim
BigJim's picture

What happens to bitcoin when the IMF - and all the other unelected little hobgoblins that bring such pleasure to our days - bring out SDRcoin and you can pay your taxes with it?

Wed, 12/04/2013 - 23:26 | Link to Comment Skateboarder
Skateboarder's picture

What is the best way to take all of your PMs overseas for good? And will you be assraped by steep duty charges?

Wed, 12/04/2013 - 23:30 | Link to Comment LetThemEatRand
LetThemEatRand's picture

You need to go bars deep, no lube.

Wed, 12/04/2013 - 23:34 | Link to Comment fonzannoon
fonzannoon's picture

"the way your dad looked at it, these bars was your birthright. He'd be damned if any slopes gonna put their greasy yellow hands on his boy's birthright, so he hid it, in the one place he knew he could hide something: his ass. Five long years, he wore these bars up his ass. Then when he died of dysentery, he gave me the bars. I hid these uncomfortable pieces of metal up my ass for two years. Then, after seven years, I was sent home to my family. And now, little man, I give these bars to you."

Wed, 12/04/2013 - 23:36 | Link to Comment LetThemEatRand
LetThemEatRand's picture

I've got a fever.  And the only prescription, is more goldbell.

Thu, 12/05/2013 - 00:56 | Link to Comment Skateboarder
Skateboarder's picture

Food almost ended up on the screen...

Was asking a serious question though. I do plan on leaving at some point in the coming few years, and do want to take my gold with me.

I've bought some Au/Ag for the folks but never for myself yet. I got one oz right now from my folks haha. I might hit a kg by the time I bounce.

edit: Am hesitant to move more than a kg lol, so I won't bother buying more than that. Am glad to put my money in land for the long term. I don't want to be hassled - I'm just a regular guy going from point A to point B motherfuckers, and I don't want to pay 100% duty to move some shiny.

Thu, 12/05/2013 - 02:36 | Link to Comment Vlad Tepid
Vlad Tepid's picture

Depends on where you're going.  A "coin collection" gets scrutinized less than bullion, a  financial instrument, (except when TPTB say it isn't).  If you're going somewhere sufficiently first world, you can always trade the collection back to oz if sheer weight is your goal.

Find a supplier that you trust where you want to end up and buy from them.  That works too.

Thu, 12/05/2013 - 06:39 | Link to Comment zhandax
zhandax's picture

In the environment we have now, keep it in equities, buy gold futures contracts,  and collect the premium on cash over delivery.  Until you really want metal.

Thu, 12/05/2013 - 07:07 | Link to Comment Winston Churchill
Winston Churchill's picture

Too late to go that route my friend, unless you are liquid and quick.

Have you tried to move money internationally lately.De facto capital

controls are already in place,The system is set up, just waiting on

the word from on high to stop all flows.

Thu, 12/05/2013 - 07:15 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

maybe exchange some emails with a jeweller in the destination country, elicit from him an agreement /undertaking to bring them some gold to smelt/convert into jewellery. Even talk about some jewellery designs etc, and so then if the customs guys wanna know why you're moving the metal, you can tell them its for a jewellery business , show them the emails in proof. 

Thu, 12/05/2013 - 09:11 | Link to Comment Ignorance is bliss
Ignorance is bliss's picture

I've given this some thought. A fishing trip to a foreign destination use your own boat, fly your own plane to the Bahamas for instance, charter a plane to Panama. Maybe a drive to Mexico and then to destinations unknown. The curtain was created for ships and planes entering the U.S. not leaving. The U.S. is too big. Confiscation through taxation would just drive wealth out of the country or into a deep hole somewhere. We would experience a similar situation as the people of India.  

Thu, 12/05/2013 - 08:12 | Link to Comment zeroheckler
zeroheckler's picture

Tungsten coated bars or balls!

Thu, 12/05/2013 - 10:54 | Link to Comment mick_richfield
mick_richfield's picture

Oh, that's really funny.

"You bastard!  This isn't real tungsten, it's gold!"

The photo-inverse of Fort Knox.

Thu, 12/05/2013 - 08:32 | Link to Comment SAT 800
SAT 800's picture

bullionvault.com/ it's on google. read all the information. The Perth Mint; represented by Kitco; no I don't like kitco, they're a business connection. Small Austrian Private Banks; that you'll have to locate for yourself; when you're in Austria on a Tourist Visa. Etc.

Wed, 12/04/2013 - 23:28 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

But, but, but you can't smoke gold.

Wed, 12/04/2013 - 23:34 | Link to Comment akak
akak's picture

Funny, you can't smoke fiat currency either, yet so much of it ends up in smoke anyway.

Thu, 12/05/2013 - 11:22 | Link to Comment Citxmech
Citxmech's picture

You can roll a pretty tight cigarette/joint with it though.

Wed, 12/04/2013 - 23:35 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Try zigzags

Wed, 12/04/2013 - 23:41 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Homeland Security Officer:  "WHERE IS YOUR UNDECLARED GOLD, CIVILIAN?!"

Me:  "I put it in a zigzag and smoked it.  It melted, then my boat sank."

Thu, 12/05/2013 - 01:07 | Link to Comment Larry Dallas
Larry Dallas's picture

I read on ZH here that the 10 gram gold bars (the tola?) were created to be smuggled in a person's ass.

Everytime I look at my stacks, I think and wonder to myself "How mamy filthy dirty Indian asses have these things been shoved up into".

I've even done the sniff test. Nothing.

 

Thu, 12/05/2013 - 03:11 | Link to Comment Colonel Klink
Colonel Klink's picture

Taste test is the only way to be sure.

Thu, 12/05/2013 - 07:47 | Link to Comment BidnessMan
BidnessMan's picture

How do you know how it tastes?

Thu, 12/05/2013 - 15:16 | Link to Comment akak
akak's picture

Corn is corn the world around.

Wed, 12/04/2013 - 23:22 | Link to Comment AUD
AUD's picture

The idea that gold is the "money of kings" is absurd. Credit is the money of kings, that's how the king always attempts to shaft his subjects, by passing dud cheques.

Gold is in fact The King of Kings.

Thu, 12/05/2013 - 08:33 | Link to Comment SAT 800
SAT 800's picture

Excellent grasp of history.

Wed, 12/04/2013 - 23:19 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Why are all governments so threatened by such an old relic?

Wed, 12/04/2013 - 23:22 | Link to Comment AUD
AUD's picture

I just told you

Wed, 12/04/2013 - 23:54 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Or was it ancient relic?

Thu, 12/05/2013 - 01:48 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

Thought it was obvious. It's because Governments are a barbaric relic.

Thu, 12/05/2013 - 08:36 | Link to Comment SAT 800
SAT 800's picture

Wow. Yeah. that's so cool. just stand it on its head and it comes out right. there's no place like Zero Hedge.

Thu, 12/05/2013 - 08:37 | Link to Comment SAT 800
SAT 800's picture

Reading challenged, evidentally. and; You sure did.

Wed, 12/04/2013 - 23:21 | Link to Comment fonzannoon
fonzannoon's picture

It is simply amazing. If India really wanted their gold so bad without restirction the rewards would be placed on government officials swinging from lamp posts (on a swing of course).

Wed, 12/04/2013 - 23:50 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Maybe we should start up a fund so that our politicians can swing from light poles here too

Wed, 12/04/2013 - 23:57 | Link to Comment Al Huxley
Al Huxley's picture

Yes of course, on a swing...

Thu, 12/05/2013 - 08:42 | Link to Comment SAT 800
SAT 800's picture

I suppose everyone here is well educated in modern history and knows that there's a long tradition of smuggling Gold into India; the main route is across the Indian Ocean from various ports in Arabia; in Dhows, I believe it's spelled. Single masted sailing vessels. This has been a major business concern for all of the twentieth century; until very recently when India began allowing gold purchases; so now they're reverting to a former official posture. The Indian economy is extremely fragile; and the money is in an inflationary spiral.

Wed, 12/04/2013 - 23:27 | Link to Comment The Wisp
The Wisp's picture

They Take My Gold.. All I will have left is My Brass & Lead...

Wed, 12/04/2013 - 23:36 | Link to Comment akak
akak's picture

I am not wanting you to be doing the making of the buying and the importing of the golds!

Gold is very bad!  Very, very bad!

Wed, 12/04/2013 - 23:37 | Link to Comment fonzannoon
fonzannoon's picture

stupid talkings!

Thu, 12/05/2013 - 00:03 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Ha habing, Americanism citizens!  Gord is velly bad!

Thu, 12/05/2013 - 07:20 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Gord is not all that bad with a little brown sugar and butter on it.

Thu, 12/05/2013 - 00:08 | Link to Comment Bay of Pigs
Bay of Pigs's picture

I notice the bitcoiners dont post much on the threads dealing with actual worldwide physical demand of PMs.

Not too surprising I guess.

Thu, 12/05/2013 - 01:28 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Bigtime Gold Fan Bearing has been posting about his education into BTC.  Soon, I may have built a good BTC to Au highway.  IMO, at least for the moment, BTC and gold complement each other.  As my education improves, I hope to spread more info (that I hope will be true).

We will see, and you my friends will hear of my experiences.

Thu, 12/05/2013 - 08:45 | Link to Comment SAT 800
SAT 800's picture

As an engineer and a life long admirer of the rolling element bearing; I can't help but sympathize with you. I think you should diversify into Silver and leave the binary games to the computer geeks; it seems virtually inevitable they're going to come a cropper with this scheme.

Thu, 12/05/2013 - 02:54 | Link to Comment Alpha Monkey
Alpha Monkey's picture

Maybe you missed how PM's were some of the most purchased items over the black weekend holiday sales by Bitcoiners.  No suprise really, many of us do understand the concept of value for tangible and intangible assets.  Now that wealth is being transferred our way, we are taking advantage and moving the shiny stuff from the hands of the banksters to those who value it more. 

The last time I spent bitcions, a year ago, I was able to buy burgers and beer for myself and two friends.  For almost the exact same quantity of bitcoins this year, I was able to buy 4.5oz of gold.  I expect with more time I'll be able to stack a few more in exchange for the BTC.  I think BTC will outperform gold for a little while into the future, but the global demand, bitcoiners included, will bring the price of gold back to where it belongs, at or above BTC price.

http://www.coindesk.com/bitpay-sales-bitcoin-black-friday/

"Merchants with the most transactions on Black Friday were Swedish bitcoin mining equipment company KNC Miner, American digital gift-card platform Gyft and gold and precious metals retailer Amagi Metals."

Thu, 12/05/2013 - 05:51 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

The mattering point being the authorities who are Indians are having many angries from the smugglings of the golds. Even more angries authorities who are Indians are having when duties are including searchings of the crustiest bits from the bitcolon wallets.

Thu, 12/05/2013 - 18:35 | Link to Comment BigJim
BigJim's picture

I sense a new ZH theme evolving here... the elucidation of Indian citizenism, it is, oh yes.

Wed, 12/04/2013 - 23:49 | Link to Comment NIHILIST CIPHER
NIHILIST CIPHER's picture

At least the population of India has gold, only 1% of Amerikans own gold. They learned their lesson the hard way over thousands of years. We are about to learn our lesson here in the not too distant future.

Thu, 12/05/2013 - 12:57 | Link to Comment scrappy
scrappy's picture

That's EXACTLY why I advocate greenbacks, not enough gold held publicly or privately in a dispersed fashion. You gold bugs are rooting for a different form of serfdom, yes I own a little of ag and au, but my society will be in ruins.

I do not want that, too many innocent people.

We must rewrite the fake history books and rebuild.

 

Thu, 12/05/2013 - 18:37 | Link to Comment BigJim
BigJim's picture

Please remind us all how fiat currency - an endogenous, debt-based money the amount of which is directly controlled by our oligarchs - is somehow more a 'money of the people' than gold?

Wed, 12/04/2013 - 23:52 | Link to Comment Al Huxley
Al Huxley's picture

That can't be true - I've read at least 2 different MSM financial news articles explaining that the import restrictions have significantly reduced gold demand in India.

Thu, 12/05/2013 - 00:04 | Link to Comment ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I must read a better class of print publication than you because I hear tell, the collapsing rate of Indian gold imports indicates a lack of demand.   More dubious sources think that more than the difference went straight to China, but the IMF doesn't see it that way at all, and they are the official source of all gold related information.

Thu, 12/05/2013 - 00:08 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

You have to be the stupidest troll ever

Thu, 12/05/2013 - 00:16 | Link to Comment ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

your humourless, illiterate anger nourishes me

Thu, 12/05/2013 - 09:54 | Link to Comment sunnyside
sunnyside's picture

Bob Toll enjoys shoving gerbils up his ass.  So did Zvi and now Doug Yearley.  It nourishes them.

Wed, 12/04/2013 - 23:58 | Link to Comment Al Huxley
Al Huxley's picture

Maybe India should declare a 'war on gold'.

Thu, 12/05/2013 - 00:03 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

If it wasn't for that shiny yellow relic there would be peace on earth...

/sarc

Thu, 12/05/2013 - 00:13 | Link to Comment ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

The sad thing is, as much as the media has played up "collapsing" Indian demand, they will completely ignore the official rebound when the government removes the restrictions.

Thu, 12/05/2013 - 00:49 | Link to Comment Bunga Bunga
Bunga Bunga's picture

they will declare it "war on terror"

Thu, 12/05/2013 - 02:26 | Link to Comment slvrizgold
slvrizgold's picture

Good.  Let the govt declare war.  So they can LOSE.  Like they always do.

Thu, 12/05/2013 - 08:51 | Link to Comment SAT 800
SAT 800's picture

India had a war on gold for most of the twentieth century. The result was a huge smuggling industry. Basically, India Lost. Now they're sort of trying it on again; I wouldn't expect any particular level of success.

Thu, 12/05/2013 - 18:39 | Link to Comment BigJim
BigJim's picture

Given that India is a democracy... and gold is almost universally popular there: isn't banning gold a one-way ticket to electoral failure?

Or have the banksters co-opted the entire Indian political class? Like they have everywhere else?

Thu, 12/05/2013 - 00:24 | Link to Comment W74
W74's picture

Demand is all that matters.  You can't prevent demand with silly laws.  If Indians demand gold (and they do) they're going to find ways to get it. 

And to that you can drink a toast of your favorite alcoholic beverage!

Thu, 12/05/2013 - 04:20 | Link to Comment PT
PT's picture

Like I said, the laws are not there to stop demand.  The laws are there to enable theft by a particular group of players.  Pay attention.

Thu, 12/05/2013 - 00:28 | Link to Comment Never One Roach
Never One Roach's picture

Market Forces ultimately win. I suspect the New Millionaires in India will be Customs Officials.

Thu, 12/05/2013 - 00:28 | Link to Comment ebworthen
ebworthen's picture

I just love to see individuals thwart the heavy hand of a corrupt state.

Thu, 12/05/2013 - 08:55 | Link to Comment SAT 800
SAT 800's picture

Well you'll like India then; everybody who gets anything at all done is heavily involved in thwarting the heavy hand of a corrupt, (and terminally stupid) state. Most peoples reaction is actually revulsion, irritation, and capitulation. ie. leaving.

Thu, 12/05/2013 - 00:53 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

I think it's safe to say the Indian Government courtesy of the arm twisting "from outside" hates stackers with a vengeance.

And India will most certainly comply in promoting the PR campaign as best they can because like China they are getting all the "jobs" from Uncle Sam that matter plus the ongoing freebee in the fixed price of PM.

One thing is guaranteed. This won't end well for them or us.

Thu, 12/05/2013 - 00:55 | Link to Comment Hongcha
Hongcha's picture

Gold is like the Mercury in the inflation thermometer and the govts. are doing their best to keep it down.

Skateboarder, no easy answer.  I'm not sure what the legal non-declarable amount that can be taken out, is.  Start with that.  If too low, maybe turn it into 24-carat bling and wear it around yer neck.  Seriously.

I have thought about a gold carry trade to India.  I'm not going to do it b/c I don't want the hassle and a ruined trip and don't have enough to make it pay.

If you want to really do it, make some family connections stateside here.  Fave Indian restaurant should be a good start, or another merchant.

Get to know some Indian traders and stow it in a container, something like that.

Or wait; Chinese will be coming over here in a few years to buy OUR bullion when it dries up over there; and you better believe they have connections wherever needed.  Hang on and let them pay you cash and take it on.

Thu, 12/05/2013 - 01:08 | Link to Comment Skateboarder
Skateboarder's picture

If current PM levels can be sustained through the next crash + rise (leading to hyperinflation), I would really love to buy the crash and sell high for lots of Au/Ag.

You're correct about the Chinese though. They're showing up here with suitcases and buying up real estate. Won't be long before they're squeezing for gold.

Thu, 12/05/2013 - 18:43 | Link to Comment BigJim
BigJim's picture

Wait until the munis/states/fedgov start charging higher land taxes to non-citizenz... for the children, you know?

Thu, 12/05/2013 - 02:53 | Link to Comment ivars
ivars's picture

War by governments in gold markets is never absurd as it always yields net results. Total amount of gold imported to India has decreased, especially since August and that was the aim (Including illlegal) .

If your country like Thailand is not active enough in trying to stop gold smuggling, there happens small revolution. Nothing is left to chance, and those trafficing paths are also taken care of. 

Any total demand ton that can be reduced requires less official gold to be sold in London to suppress gold price, so is worth the planning and ecxecution efforts. 

 

 

Thu, 12/05/2013 - 04:43 | Link to Comment fijisailor
fijisailor's picture

My question is why India got the "message" to suppress gold imports and China did not.  Must only be related to deficits which the Chiinese don't have.  Which idiotic govts think that thousands of years of tradition can be stopped?  I do know one thing from experience and that is that nearly all Indian govt officials are corrupt and the gold flow will continue.  One final question.  What are the actual tonnage values of illegal gold into India?  7X sounds great but 7X what?

Thu, 12/05/2013 - 05:09 | Link to Comment lakecity55
lakecity55's picture

I guess 7X their usual import. They  know the jig is up.

Thu, 12/05/2013 - 05:15 | Link to Comment fijisailor
fijisailor's picture

Nice to see you with insomnia also.  Are you in Lake City FL?  I'm in FL.

Thu, 12/05/2013 - 08:41 | Link to Comment Quinvarius
Quinvarius's picture

I think the Indian's got involved in something bad when they agreed to do a deal with the IMF for 200 tons.  It is probably something like the IMF refuses to deliver the gold until they can actually buy it for less than the cost they promised it to India.  So the Indians are too humilated to admit they were swindled and are going along with the ponzi.  After a while they will realize the IMF will never deliver their gold...ever. 

Thu, 12/05/2013 - 05:07 | Link to Comment lakecity55
lakecity55's picture

The shields are breaking down, Captain!

More Fiat, Scotty!

The DiLithium crystals will fracture, Captain!

Captain, it is logical Gold is preferable to Fiat.

Not now, Spock! We have Orders from the Federation!!

Those Orders are illogical, Captain. I suggest we collect the Gold.

Thu, 12/05/2013 - 08:59 | Link to Comment SAT 800
SAT 800's picture

Something like that.

Thu, 12/05/2013 - 05:09 | Link to Comment fijisailor
fijisailor's picture

Every fucking day there is an early morning smack down in AU.  Must be a way to play that for a profit.

Thu, 12/05/2013 - 06:42 | Link to Comment Iam Yue2
Iam Yue2's picture

"In the latest such incident, Customs officers found a Sri Lankan passenger bound for Chennai carrying four pieces of gold hidden inside his rectal cavity. The four pieces weighed 387 grams valued at Rs. 1.9 million. The gold was wrapped in carbon paper to escape metal electronic detectors, Gamini said. The arrested man has confessed that he is a trishaw driver and has travelled to India seven times during the year. The suspect has also said that he had smuggled gold to India on previous occasions undetected."

Thu, 12/05/2013 - 07:10 | Link to Comment Peter Pan
Peter Pan's picture

Rupee means "wrought silver."

Next question.

Thu, 12/05/2013 - 07:35 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Hire a porn star and jam two 1kg bars up her ass and snapper. 

Thu, 12/05/2013 - 08:35 | Link to Comment Quinvarius
Quinvarius's picture

Because no one would ever want to look at a Porn star's snapper or ass, much less get inside of them?  I think you have taken the concept of hiding things in plain sight to absurdity.

Thu, 12/05/2013 - 15:07 | Link to Comment scrappy
scrappy's picture

Add a bit coin credit card swipe in one of those cracks for convenience sake please.

Thu, 12/05/2013 - 07:41 | Link to Comment Peter Pan
Peter Pan's picture

Personally I welcome what the Indian government is doing. If they can reduce the demand for gold and knock down the price then the cost of buying insurance against a total collapse has all of a sudden become much cheaper.

Thu, 12/05/2013 - 09:16 | Link to Comment q99x2
q99x2's picture

Wonder why the tax on cocaine is larger than the one on heroin.

Thu, 12/05/2013 - 09:56 | Link to Comment sunnyside
sunnyside's picture

Beurocrats family is the main importer of heroin.

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