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With 50 Tonnes Of Gold Smuggled In 10 Days, India's Physical Gold Premiums Set To Double
As the price of precious metals that is eschewed daily by status-quo-hugging talking-heads on business media as indicative of the days of hard money being over continues to come under 'pressure', demand for physical gold remains extremely high. With India's festive season about to begin, The Hindustan Times reports a massive surge in gold smuggling in the last 10 days as heavy demand for gold during Dussehra (for which booking and supply starts today when Navratri begins) has dragged 50 tonnes of gold across the borders to avoid the government's capital controls. As Bloomberg adds, physical gold premiums may double by the end of October.
As The Hindustan Times reports,
About 50 tonne gold has been smuggled into the country in the past 10 days, and subsequently pushed into the market to cater to a surge in demand for the precious metal in the festive season. There is a heavy demand for gold during Dussehra, for which booking and supply will start from Thursday, when shradh ends and Navratri starts.
Market sources said that 30% of the smuggled gold has been supplied in Mumbai to unscrupulous jewellers, while the rest was distributed to different parts of the country.
Sources said that illegal gold is finding a place in the market because of below average import resulting from the 80:20 scheme and 10% import duty. Against the average monthly demand of 80 tonne, the import is presently around 51 tonne in the country.
Sources said that gold was smuggled into the country through the land route, via Nepal, Bhutan, Bangladesh and Pakistan. “This is because airports have tightened security, restricting the smuggling of gold by the air route,” said a market expert. The Mumbai airport customs, which has started a serious crackdown on gold smugglers, has seized around 529 kg gold from April to August this financial year.
Experts fear that more gold will be smuggled from similar land routes in days to come, as the demand will shoot up once the marriage season begins, in the later part of November. “There will be huge demand because of the festive season, and also the low price at which gold is presently being traded,” said Kumar Jain, vice-president of Mumbai Jewellers’ Association.
Jain said, “The government should immediately bring down the import duty and relax the 80:20 scheme, so that official import goes up. That will bring down the smuggling.”
Rajiv Popley, director Popley Group, said, “Smuggling of gold has been on the rise for the last eight months, due to irrational supply issues. The officially available gold was at a premium, which was higher than anywhere else in the world.”
Popley said that the demand for gold is increasing with the onset of festivities. “Both Dussehra and Diwali are auspicious festivities to invest in gold,” he said.
Gold premiums in India, the biggest user after China, may double by the end of October as the fourth straight quarterly decline in local prices spurs jewelry purchases before the nation’s main festival season.
The fees that jewelers pay banks and dealers may increase to $20 an ounce over the London cash price by the Diwali festival, a level last seen in early July, Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation, said by phone from Kolkata. The nation celebrates the Hindu festival of lights on Oct. 23 this year.
“Consumers have realized that the government will not take any measures to ease import restrictions soon, so they will stop postponing purchases. Price is the most important factor.”
“We expect premiums to rise but they will still be lower than last year and therefore won’t trouble consumers much,” said Bamalwa. The fees were about $120 an ounce last Diwali and peaked at $160 in December, he said.
* * *
While premiums for physical gold surge, we can only imagine the "thanks" the people of India are offering up to Western Cartel banks in lowering their purchasing prices...
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So, gold takes another dump, why? Goldfinger??? Disparity...
Goldmember...
Navratri = 9 nights = 9 forms of Durga, wife of Lord Shiva. This is the Hindu philosophy. It is less a religion, than a philosophy, and is what all religions should strive to be. Because religion, is straight up bullshit.
A little cultural wisdom for you guys.
Not to quibble, but who keeps smuggling records? I'm taking this report with a big grain of salt.
And the costs of miners keep rising - either we see a higher gold price now or miners go out of business and we see one later:
http://seekingalpha.com/article/2492875-complete-second-quarter-gold-all-in-costs-show-that-peak-gold-may-be-a-reality
just keep the price down a lil longer for me pls
who keeps smuggling records? Why the OAS of course !!!
/Organzation of Accounting Smugglers...
Becuase of my deep insider connections I have tomorrows Bloomberg headline:
"Indian Gold demand set for sudden collapse after festival season - say market experts".
As a philosophy exercise how long until the different cost of physical gold goes from being considered a "premium" to paper being sold "at a discount"?
In the last few weeks, Ive come to believe there is no reason the Comex cannot simply stop delivering any gold at all while still continuing to control the price for a long time. The media will just talk about the "premium" to the official price and experts will puzzle at why anyone would pay it.
Well, if X is the average monthly demand at this time of the year, and Y is the actual imported supply, and if premiums haven't gone up much, then
X - Y (81 - 50) must go someway towards highlighting a large chunk if the smuggling, and the remaining smuggling is an inventory for demand over the next 2-3 months. So 50 tonnes could be possible over 10 days. A lot of Indian customs people are in on the smuggling also.
They would be the best source of data.
re. who keeps smuggling records
Indians can carry home some amount legally that they have to declare. Some Indians are paid to carry and declare. I think this is the "smuggling" they're talking about.
Nothing to see here.....move along.
These are not the droids you're looking for.
It would be nice if gold went down to 800 for a little while, just to give a few people a chance to lower their cost average.
50 tonnes of tradition.
50 tonnes does not move without complicity of those in authority. Getting pressure from the US to keep Gold from getting a hold as a store of value and money. India gives lip service to the Banksters but on the other hand....
Whats the matter, can't the dhows coming down from the UAE keep up
with demand ?
Big lake that Arabian Sea..
"Market sources said that 30% of the smuggled gold has been supplied in Mumbai to unscrupulous jewellers, while the rest was distributed to different parts of the country.
Sources said that illegal gold is finding a place in the market because of below average import resulting from the 80:20 scheme and 10% import duty. Against the average monthly demand of 80 tonne, the import is presently around 51 tonne in the country."
Notice how the jewelers are unscrupulous and not those who imposed restrictions upon the importation of Gold. You find 'state media' wherever you go.
Its the damned Jains taking advantage of poor Hindus again.
One thing I'll guarantee you is this - Any Indian with a good size stack (in relation to their net worth) sleeps very well at night.
Maybe some of the western economic insomniacs could learn from our Eastern brothers and sisters.
Gold @ $800 good luck finding it.
you can barely find it at 1200
And premiums on ebay have gone way up. At these prices the manipulation will crash and burn a lot sooner.
I laugh my ass off. DB is frustrated that they can't seem to get the Indians to buy paper gold.
Just remember what the MSM tells you. It's a barbaric relic and only a commodity. The trouble is convincing 3 billion Asians.
What's the difference between a barbaric relic and a barbarous relic?
Gold is a barbaric relic the FED is a barbarous relic...
Keep the faith bugs, and keep stackin' 'cause it ain't over 'till the fat lady sings, and I hear her over in the corner warming up her pipes.
Look what is on CNN
Zero Hedge: Wall Street's daily dose of doom and gloomBy Matt Egan @mattmegan5 September 25, 2014: 8:00 AM ET
NEW YORK (CNNMoney)
If watching the news doesn't satisfy your hunger for scary stories, Zero Hedge is the place for you.Zero Hedge, a financial blog, offers a deeply conspiratorial, anti-establishment and pessimistic view of the world.
http://money.cnn.com/2014/09/25/investing/zero-hedge-wall-street-blog-finance/index.html?iid=mkt_SF_news
the comments at link need work
CNN who?
CNBC and MSNBC has a bigger following than those guys. I only watch that crap walking though airports.
I say fAck CNN!
Sorry duplicate.
Ah. One of those dying MSM propaganda mouthpieces.
CNN, the mouth of the machine.
What else would you expect from the Communist News Network (CNN)?
Considering all the conspiracies that have been proven true, and all the ones discovered nobody suspected, thats an extreme compliment from those proganda shilling rat bastards. Of course their zombie audience won't get it, as they have been pre-programmed with a different connotation for conspiracy.
Question: 50 Tons? What is That?
Answer: A Good Start-
50 metric tons in 10 days is roughly 65% of the globally newly mined gold in 10 days. An that is the smuggled-only estimate. The western vaults must be running low, unless - against all odds - the nutty Karen Hudes is right and the US is sitting on a lot of extra phyzz that they sell into the markets.
50 tons is 1.6 million ounces! That's a hefty amount but as was already queried above: who keeps records of smuggled goods? This may be exaggerated...
It's probably an under estimate
"If watching the CNN SpamSnews doesn't satisfy your hunger for shitass story lies, Zero Hedge is the Only place for you.
"Zero Hedge, an intelligent, snarky, kickass financial blog, offers a deeply Macro, anti-NWO establishment and brutally honest yet pessimistically Humorous view of the world."
FIFY,
Alex Co Jones, Copy Editor
I never understood the Asians buying so much gold until one explained it to me. He said “…your country has had been stable for many years. With us governments come and go. We must be prepared to run, when governments collapse, with our few belongings. Gold is easy to run with…”
...and I never met a dumb Asian so that sounds like true advice.
People get very smart and educated in the field of money as soon as they experiment a significant loss of their cash (say 25% inflation). By then though, it is usually too late to save the rest... Most people in Asia have witnessed this mechanism at work time and again, some of them for several consecutive times in their life. Americans didn't, which is why they believe it can never happen to them (because they are so freaking exceptional, and all...)
Good article on that at:
https://www.moneymetals.com/news/2014/09/24/warning-3-billion-people-cov...
What ever happened to the billions of dllars worth of gold they found in the Kerala, India temples? Govt wanted to confiscate it and the people wanted to leave it for the "gods"...
ZH must soon have a bigger follower crowd than CNN... First they ignore you, then the ridicule you,... then... you know, kinda thing. Happy stacking dear Indians, Chinese, Russians, stackers, ZHers - whereever you are.
50 tonnes? Good God! How much gold can one skinny Indian stuff up his ass?
as much as app. 2.5 m^3
am an avarage indian.....middle class..salaried , in mechaincal maintainance of heavy industtry.
waiting for interes rates to start rising, aftar the tapering is completed this october.
have saved money, expecting to buy.... i predict the right time would be arround next june.... interest rising by 1 persent, strong dollar, gold hopefully colapsing to 900-1000 dollar, planning to buy half kg....
my collegue ... seems to be taking bribes ,has already a kg of gold this year for her daughters pubity function(some religious function on the ocation), and has collescted 4 kgs for marriage.
poorest of poor indians , tribals living forest, who cant afford gold, buy silver instead....
http://t0.gstatic.com/images?q=tbn:ANd9GcQdJWS4Q6GDoUnsxjUAu8lVOx5OUj32v...
http://gb.fotolibra.com/images/previews/747129-tribal-indian-woman.jpeg
http://www.premgit.co.uk/indtribal/indtribal7.html
http://www.theguardian.com/business/2010/aug/24/vedanta-mining-industry-...