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Gold Imports ‘Phenomenal’ In India - 571 Percent Surge To 150 Tonnes in November
Gold Imports ‘Phenomenal’ In India - 571 Percent Surge To 150 Tonnes in November
India's gold imports were over a staggering 150 tonnes in November and have seen a "phenomenal" rise in India, according to India’s Trade Secretary, Rajeev Kher.
A few weeks ago we said that the death of the Indian gold market was greatly exaggerated. The latest gold import data out of India confirms this.
The import restrictions on gold that were imposed on Indians in August of 2013 were lifted at the end of last month. Despite the fact that the restrictions were still in place gold importation in November surged an incredible 571% relative to the same month last year at over 151.58 tonnes.
This was an increase of 38 percent from 109.55 tonnes a month earlier, trade ministry data showed on Tuesday.
The Indian government had recognised the socially destructive impact of the 80:20 scheme - which obliged importers to export 20% of it’s gold imports before bringing in another shipment – by pushing business into the hands of smugglers and thereby empowering criminality while losing out on the 10% duty currently charged on all gold imports.
It had been assumed that, because demand was being met by these “informal” supplies, the relaxing of the 80:20 policy would not have a dramatic impact on gold imports into India. That remains to be seen. Smuggling networks are now well established and arguably could provide cheaper gold than government-sanctioned channels.
The restrictions were put in place because the appetite of the growing Indian middle classes for gold was causing India to run large trade deficits. It is believed that it was also a misguided attempt at financial repression of gold in order to discourage Indians from buying physical gold. There were concurrent attempts to get Indians to open bank accounts and indeed to own digital and paper gold.
This highlights once again how deeply Indians feel about gold in that demand for this single commodity or form of money - could skew the trade deficit in such a dramatic way.
India officially imported $5.6 billion worth of gold in November. The trade deficit increased to $16.9 billion in the same period despite the cost of oil imports being low. This is putting pressure on the rupee which is currently valued at almost 63 to the dollar.
The central bank appears happy enough at this level as it will help boost exports which have been booming. However, India’s trade secretary - Rajeev Kher - has said that any level below 62 rupees to the dollar would cause him to be a “little more concerned.”
Russia’s drastic rate hike of 6.5% up to 17% is likely to further unnerve the Indian government as it tries to balance insatiable public demand for gold with the need to rein in the deficit. If the rupee falls more, India will be forced to raise rates to discourage capital flight.
However, taking the longer term view, it must be said that – as a country that imports between 25% and 33% of the global gold supply – India will be well placed when currency wars deepen and the inevitable world-wide monetary reset occurs.
India’s imports are around the 1,000 metric tonne mark and global gold production is just under 3,000 metric tonnes.
We believe that it will be eastern countries who will determine monetary policy when that time comes. As Russia’s foreign minister Lavrov has pointed out the seven countries led by the BRICS nations now have a larger combined GDP than the western G7.
The old adage that “those who own the gold make the rules” will likely come to pass again. As it did in 1945, when the U.S. was the largest holder of gold in the world which enabled it to dictate the terms of the new Bretton Woods monetary system.
This seems likely given the affinity that the people, governments and central banks of India, China and the East have for gold as a store of value.
Essential Guide to Storing Gold Bullion In Singapore
MARKET UPDATE
Today’s AM fix was USD 1,199.25, EUR 960.25 and GBP 763.95 per ounce.
Yesterday’s AM fix was USD 1,210.75, EUR 974.53 and GBP 772.41 per ounce.
Spot gold slid $30.40 or 2.49% to $1,191.70 per ounce yesterday and silver plummeted $0.87 or 5.12% to $16.14 per ounce despite no market moving news or developments.

Gold in USD - 5 Days (Thomson Reuters)
Gold in Singapore was flat overnight in Asia prior to gold bouncing back from yesterday’s biggest drop this year and is over 2% higher today as buyers accumulate after yesterday’s dip. Traders await the policy statement from the U.S. Federal Reserve meeting tomorrow.
Gold fell yesterday as U.S. manufacturing data beat estimates supporting the case for higher borrowing costs next year. Federal Reserve officials meet today and tomorrow to debate the possibility of rising U.S. interest rates, which have been near zero since 2008.
Silver for immediate delivery rose 2.5% to $16.70 an ounce, after plunging by 5.1% yesterday. Platinum was little changed at $1,209.88 an ounce. Palladium added 0.3% to $800.38 an ounce.
Holdings in gold-backed ETPs dropped 3 metric tons to 1,608.2 tons as of yesterday, Bloomberg data showed.

Silver in USD - 5 Days (Thomson Reuters)
The world's second largest gold consumer surprised analysts and discarded a rule for traders to export 20% of all gold imports. This change led to gold imports surging to 151.58 tonnes in November, an increase of 38% from 109.55 tonnes a month earlier, noted the trade ministry data yesterday.
Indian gold imports had risen hugely and the government should examine the impact of last month's revision of the so-called 80:20 rule commented Trade Secretary Rajeev Kher.
The global price of crude oil plummeted through $60 a barrel for the first time in five years with almost no signs producers are ready to tackle a glut. Brent futures slid as much 3.3% to its lowest since May 2009 in London.
Crude oil fell about 45% this year as OPEC (Organization of Petroleum Exporting Countries) sought to defend market share amid a U.S. shale boom that’s exacerbating a global glut. The group, responsible for 40% of the world’s supply, will refrain from curbing output, U.A.E. Energy Minister Suhail al-Mazrouei said over the weekend.
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http://www.bloomberg.com/news/2014-12-16/traders-betting-russia-s-next-m...
Russia is going to sell its 1000 tonnes to buy some USD...hooray you've got someone to trade some physical guys
Goldcore is a crook. why does anybody still read his posts
Indians will buy gold but in other countries forget it, gold shops are empty so retail sales of gold in India doesn't have any effect on the price of gold around the world. Governments buy some gold and in USA gold is a great insurance policy to protect against a government collapse. At today's prices, get yourself some peace of mind and invest in 20 or 30 ounces of gold bullion from a local coin shop where you pay and receive on the same day. Mail order gold is for schmucks.
indians ain't dumb. they know world war comin' - soon.
Sorry you sound dumb because Indians have been buying gold since time began, so Indian purchases today don't represent some collective prediction of a coming war. LOL.
India ready to join the anti-neoliberal bloc like Iran:
http://failedevolution.blogspot.gr/2014/12/russias-moves-to-decouple-eco...
indian people doing the wrong thing. they would have been much better buying some good george washington 1$ bills
Gold is trading very weak. The market is set up for new lows. Despite all the news flows, couldnt break 1220$. Swiss referendum price action seems to being digested.
I expect FED tightening talk tonight and a decline to 1150$ on the news
I'm praying that it goes to $1150. Huge buying opportunity at that level
The way things look around the world now it should drop as people liquidate their holdings to cover their margin calls - all that paper gold is gonna go bye-bye, and drive down the price. Then when it's all washed out, phyzz to the moon...
the opportunity is to sell, and sell right now. once you're filled @ 1150$ its a cliff down there. you're being warned, ZHers.
if youre lucky you may sell a bounce to 1190$ but its risking 100$ or much more to make 40$ with a probability less than 50%
My thoughts are the gold will suffer one more major down leg as the USD rallies for the final time. Maybe this is the result of the Fed but in my mind it is centered in one simple fact. All other western currencies are either a joke with no sound financial fundamentals (Euro or Yen) and no other currencies can handle any type of capital flight other than the USD.
So I'm expecting one last great bull run for the USD which will place significant pressure on PMs but in the end, when everyone realizes they are on the same side of the trade (in the USD) and the damage inflicted on the world's economy from an unstable FX environment is felt at multiple levels including financial, political, social, and military, the greatest unwind and position exit the world has ever witnessed will be realized.
Might not happen for another six months, year, or maybe two or three but by 2020, the pain of re-balancing the world's economic base from the over indebted west to the east will be severe to say the least.
yep but in the meanwhile, gold may trade down to 700$
The dude with the stash bathed in gold look likes India's answer to Mr. T. "Yes, yes. I pity the fool. Very much so. Yes."
bling bling
LOL. Western central planners keep thinking they can change 1.2 billion people with their 100s of years of tradition. Paper gold will never fly in India.
HUGE(!!!!!!) demand. Price is down. Black is white. In is out.
Seems like "importing" has become rather important.
Nails into the fiat coffin, using that ancient relic bubble metal
I'm a big fan of ancient relics.
I'm rapidly approaching being one!
Whenever the subject of the yellow shiny comes up, I always wonder why, if it's so irrelevant, is it manipulated (very fucking obviously) so much??
They've seen despots running the money supply before.
In the west, few in living memory saw this, and they are old so easily dismissed.
That is one snazzy shirt, I tell you what.
Just don't go swimming in it.
Or outside, unless you've got a really big set of bodyguards...
lol ethnic people love gold....I mean they looove gold...soo sad.silly metal tricks are for kids.
Silly paper tricks are better???
This is the best phzzzz gold can do??? after all the turmiol in oil,ruble,etc et. al lolololool
Bid/Ask 1197.30/1198.30 Low/High 1183.10 / 1203.80 Change +8.40 +0.71% 30daychg +10.10 +0.85% 1yearchg -33.80 -2.75%