Gold Surges On Speculation India May Ease Import Restrictions; China Reports Gold Reserves Unchanged

Tyler Durden's picture




 

Over the past year India's attempt to impose price controls on gold imports has only achieved one thing: forced citizens to find ever newer and more creative means of smuggling gold. It has gotten so bad Indians are now smuggling the yellow metal through Pakistan, on airplanes, and has now even surpassed the illegal drug trade. Which perhaps is why the biggest news in the commodity space overnight was the appeal by India's Congress party chief, Sonia Gandhi - widow to Rajiv - to the government asking for a cut in the record import duty on gold and for other restrictions to be eased, television channel CNBC Awaaz said citing sources that it did not identify. Reuters adds that "the coalition government, led by Congress, is considering easing restrictions, which include a 10 percent import duty and a rule that says 20 percent of all imports must leave the country as exports, government sources told Reuters earlier this month. India used to be the world's biggest buyer of bullion until the government introduced the curbs in order to contain a record current account deficit."

Judging by the spike in gold on the news, two things are apparent: Gandhi may just get her wish granted, as nobody buys the official story scapegoating gold as the reason for the relentless Indian trade deficit. Second, India may soon regain its role as dominant buyers of gold, after massive pent up demand by Indian retail buyers is unleashed on the world, sending the price of gold soaring.

Should that happen, the holdings of the GLD ETF may need to slide below zero in order for sales of imaginary paper gold to offset ever rising demand for physical.

And in other, far more humorous news, China announced that its gold reserves remained unchanged at the end of 2013, at 33.89 million troy ounces, the same as it has been for the past 5 years.

Needless to say, absolutely nobody believes this particular Chinese number.

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Thu, 01/23/2014 - 09:17 | 4358389 Manthong
Manthong's picture

the officials do not realize how powerful gold cuffs are.

Thu, 01/23/2014 - 09:31 | 4358427 GetZeeGold
GetZeeGold's picture

 

 

Billions of Chinese scrambling for the one pair of cufflinks......I just can't see this ending up well.

 

Maybe Obama was a little quick on outing Jim Garrow......we could use him right about now.

Thu, 01/23/2014 - 10:07 | 4358561 SoilMyselfRotten
SoilMyselfRotten's picture

Those dirty SOB's, always manipulating to the upside

Thu, 01/23/2014 - 10:14 | 4358594 eclectic syncretist
eclectic syncretist's picture

The Chinese saying their reserves haven't changed merely means the policy of accumulation is still going on. 

Thu, 01/23/2014 - 10:33 | 4358661 Troll Magnet
Troll Magnet's picture

Filthy bastards...

Hey, maybe all that "gold" they've been buying turned out to be tungsten MADE IN CHINA?

Thu, 01/23/2014 - 10:37 | 4358678 outamyeffinway
outamyeffinway's picture

Remember though when they last announced it they had been holding the gold somewhere and then moved it onto the books of the PBOC....something like that.

So they have it in room A while the official gold is in room B. So why talk about it and run up the price when there's more Western gold to acquire?

Thu, 01/23/2014 - 11:03 | 4358758 BaBaBouy
BaBaBouy's picture

CHINA Has Been ""EATING"" All The GOLD They've Been Buying!

Yes Folks, All That GOLD Is GONE, MANGER, EATEN !!!!!!!

Thu, 01/23/2014 - 12:19 | 4359077 americhinaman
americhinaman's picture

or it means that private chinese folks have bought all the gold imported into china.

if this is true, the implication for gold is MUCH more bullish... it means the demand for gold ex-government purchase demand is already at massive levels.  what happens if the govt starts buying?

Thu, 01/23/2014 - 10:09 | 4358573 Jannn
Thu, 01/23/2014 - 11:06 | 4358743 douglas
douglas's picture

Reflecting on how significant up-days scare me more, here's a (slightly modified) post of mine from a down day in metals...

If at this stage you are not COMPLETELY conviced that PM's are highly manipulated to maintain control of a colapsing fiat monetary system then you probably have no business owning any precious metals besides personal jewelry - I would recommend that at this point you stop reading here, close out Zero Hedge and turn on MSNBC.  

If on the other hand you are awake and can see that not only are we waist-deep in manipulation but ever-nearer to a Global Monetary Colapse, then you should be COMPLETELY convinced that it's only a question of time before TPTB lose the ability to continue said manipulation.  If this is the case you should like me be rooting for the price of PM's to go down so you can acquire more.  Rather than complaining about the manipulation, be thankful for it and continue to increase your holdings. After all, the day TPTB finally lose control, the world will become a much sadder place and comforts which we now enjoy will go away for the majority of the people of this world - in fact I suspect there will be significant loss of life...

Something to think about... The best part of all this is that even if we are wrong about the current economic situation (which all evidence proves we are not) your life will be no worse for having a large horde of Gold and Silver, on top of that you'll sleep much better...

Thu, 01/23/2014 - 11:48 | 4358943 Greenskeeper_Carl
Greenskeeper_Carl's picture

very true. unlike many on this site, im not cheering for a dollar collapse and reset. it would result in a lot of misery for a lot of people, mostly the poor and middle class. the people who will have caused it will mostly get through it unscathed. like it or not, most people use the dollar to conduct their day to day business. a soaring gold/silver price would likely mean the dollar is on its way out. and as you said, even without any kind of collapse, you will be better off with a large ammount of gold and silver, as it will surely be worth much more than it is right now in years to come. I am under 30, and i hope they keep their little paper game up for years to come, cuz i will buy all i can at these levels

Thu, 01/23/2014 - 14:22 | 4359608 Mad Mohel
Mad Mohel's picture

Fuck the dollar and every last dirty motherfucker that plays the game!

Thu, 01/23/2014 - 10:16 | 4358606 thunderchief
thunderchief's picture

The Chinese numbers are official when you consider how corrupt the politicians are.  They will steal it all, just like they are parking billions overseas. 

Thu, 01/23/2014 - 10:47 | 4358705 BigJim
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I'm told the FRBNY vault is particularly secure - maybe they should consider storing it there?

Thu, 01/23/2014 - 09:18 | 4358390 Mr. Magoo
Mr. Magoo's picture

Fatfinger is already on the case

Thu, 01/23/2014 - 09:24 | 4358407 jbvtme
jbvtme's picture

goo, that you from the den?

Thu, 01/23/2014 - 09:41 | 4358460 Quinvarius
Quinvarius's picture

And one of these days he is going to pull back a stump from the elbow down.  Even his wedding ring will be gone.

Thu, 01/23/2014 - 11:26 | 4358838 BigJim
BigJim's picture

There was major dumping over the last couple of days. Now we're back where we were two days ago. Whoopee.

I think Mr FatFinger had advance notice of this news, and squashed it down so the news wouldn't lead to a break of the 1260/1270 resistance.

Now... what do you bet India will announce it's not relinquishing its import duties on gold, and POG will plummet again? Maybe even further?

Fucking PTB.

Still, as you say, one of these days... fuckers can't keep it up forever. Just feels like they can!

Thu, 01/23/2014 - 09:22 | 4358401 pan
pan's picture

Make your peace with Gold!

Thu, 01/23/2014 - 09:40 | 4358463 DeadFred
DeadFred's picture

There's not much room to move between the lowering trend line and the solid floor. I put the trend line at about 1254 today. If it goes through to 1260 how many minutes until 1300? Or will it be beasured in seconds? Times they be be a changin'

Thu, 01/23/2014 - 09:56 | 4358533 TeamDepends
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Just got a (golden) tingle up our leg, Fred.  We're walkin' on sunshine!!!

Thu, 01/23/2014 - 10:57 | 4358738 BigJim
BigJim's picture

I love you guys' optimism!

I'm sure that day will come, but I very much doubt it's this day.

Thu, 01/23/2014 - 11:07 | 4358765 DeadFred
DeadFred's picture

What is life without hyperbole and satire? For those of us on the left coast. The clock started ticking at 6:59.

Thu, 01/23/2014 - 09:23 | 4358406 youngman
youngman's picture

Wonder where all that Chinese gold is going????

Thu, 01/23/2014 - 10:11 | 4358581 Ignatius
Ignatius's picture

'Outrageous Lies' for a thousand, Alex

What is "China"?

Thu, 01/23/2014 - 15:37 | 4359913 Againstthelie
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I'm wondering if there is something completely different behind this gold story.

First India followed with the Gold "ban" after US visit.

But then something seems have to gone not as wanted:

Western media start reporting mass rapings in India as if it was something new.

Then the ridiculous story about Indian embassador, not paying his employees is brought.

And now India is discussing to stop the gold "ban"?

Thu, 01/23/2014 - 09:24 | 4358410 youngman
youngman's picture

Must be all those medals in Sochi.....

Thu, 01/23/2014 - 09:27 | 4358424 Bearwagon
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That's just gold-plated sheet steel, and you know it ...  ;-)

Thu, 01/23/2014 - 09:32 | 4358438 GetZeeGold
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If I worked that hard and found that out......I'd be sooooooo pissed.

Thu, 01/23/2014 - 09:39 | 4358456 krispkritter
krispkritter's picture

Well you'll be mostly pissed, they are gold and silver... http://chemistry.about.com/od/metalsalloys/f/what_are_olympic_medals_mad...

Thu, 01/23/2014 - 09:41 | 4358466 GetZeeGold
GetZeeGold's picture

 

 

Is there a strict limit on them?

Thu, 01/23/2014 - 14:55 | 4359733 it aint easy
it aint easy's picture

Yea gold medals are usually plated sterling i think.

But hey, silver bitchez!

Thu, 01/23/2014 - 09:26 | 4358415 NoDebt
NoDebt's picture

Quick, somebody hit the "gold slamdown" button before this spirals out of control.

Thu, 01/23/2014 - 09:30 | 4358431 Bearwagon
Bearwagon's picture

Do it yourself man! Just ring 'em up and tell that you wanna sell like 200 tons all at once now! They wouldn't even ask your name ...

Thu, 01/23/2014 - 09:28 | 4358416 IridiumRebel
IridiumRebel's picture

Perhaps you would be liking some gold with your purchase of Hustler Magazine? Thank You! Come again!

Thu, 01/23/2014 - 09:32 | 4358429 fijisailor
fijisailor's picture

In New Orleans I was asked if I would like a joint with my burger and fries at McDonalds.  True story.

Thu, 01/23/2014 - 09:33 | 4358443 IridiumRebel
IridiumRebel's picture

In my drinking and drugging days, when in a new town, I would ask the 7/11 clerks. They would get it for me everytime. 

Thu, 01/23/2014 - 09:37 | 4358455 GetZeeGold
GetZeeGold's picture

 

 

Dude....the secret menu is not secret if you tell everyone.

Thu, 01/23/2014 - 09:41 | 4358467 IridiumRebel
IridiumRebel's picture

7/11 herbal salad please?

Thu, 01/23/2014 - 09:42 | 4358477 GetZeeGold
GetZeeGold's picture

 

 

Do you need a pack of matches to go with that?

Thu, 01/23/2014 - 09:43 | 4358481 IridiumRebel
IridiumRebel's picture

Yes, I see you are out of lighters in the crack supplies aisle.......

Thu, 01/23/2014 - 09:26 | 4358417 fijisailor
fijisailor's picture

One good question is how much of the gold imported to China is smuggled over the border to India?

Thu, 01/23/2014 - 09:32 | 4358434 29.5 hours
29.5 hours's picture

apparently ALL of it, since there was no increase in gold reserves in China...

 

 

 

 

Thu, 01/23/2014 - 09:34 | 4358444 fijisailor
fijisailor's picture

Yea that's like the Chinese .gov just issuing a statement admitting they are liars.

Thu, 01/23/2014 - 10:32 | 4358667 ltsgt1
ltsgt1's picture

Well, we are in the midst of a currency war. I infer this blatant lie is just part of war. The fed is in the trenches and the Chinese are messing with their heads.

Thu, 01/23/2014 - 09:46 | 4358487 KickIce
KickIce's picture

No kidding, maybe taking a page out of ZH and claiming a boating accident

http://www.zerohedge.com/news/luxury-chinese-boat-launches-sinks-immedia...

 

But more likely just following Rothschild orders.

Thu, 01/23/2014 - 09:32 | 4358437 e_u_r_o
e_u_r_o's picture

getting really sick of it. I either want it to go down more to buy or go up more to be happy.

 

This breakeven BS is driving me mad.

 

Thu, 01/23/2014 - 09:48 | 4358503 29.5 hours
29.5 hours's picture

 

"This breakeven BS is driving me mad."

If that is true, then you are one of those people called a "weak hand" by the gold price manipulators. One of the goals of their maneuvers is to shake physical gold out of the possession of those who cannot run the full course of the race.

 

 

Thu, 01/23/2014 - 11:00 | 4358749 BigJim
BigJim's picture

Sad but true... to an extent. But I think they mainly want to stop the USD/Euro/Yen/Yuan etc looking like the toilet paper that they are.

Thu, 01/23/2014 - 13:04 | 4359248 e_u_r_o
e_u_r_o's picture

Weak hand? Cmon, the opposite of that. I want to see some action.

 

Either up or down is fine by me.

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