This page has been archived and commenting is disabled.
Indian Government Shifts Focus to Temple Stash After Failing To Get Citizens' Gold
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
The scheme has only attracted about one kilogram in a month, prompting the government to nudge temples through banks to hand over their treasures, the sources said, but at least one temple said it was still unconvinced by the plan.
“Convincing retail consumers is not an easy task, it takes time,” said a senior official with a state bank, who declined to be named. “We’re planning now to focus on institutions like temples.”
A finance ministry official said if banks fail to win over temples, the government could intervene directly by talking to the temples as it is looking for a big boost to the scheme to keep both imports and the current account deficit under control.
– From the Reuters article: India Targets Temple Gold Hoard to Rescue Monetization Plan
The Indian government has been trying to get its citizenry to relinquish its gold to the bankers for a very long time. I’ve covered this saga periodically over the past several years, most recently in last month’s post, A Warning to Indian Citizens – Your Government Wants Your Gold. Here’s an excerpt:
India’s prime minister on Thursday unveiled three state-backed plans to try to tap the stockpiles of the precious metal to trim physical demand and reduce imports by providing people with alternative avenues for investment. At an event in New Delhi, Modi announced the formal start of a gold-deposit plan, a sovereign-bond program linked to the metal’s price and introduction of locally minted coins, some bearing the face of Mahatma Gandhi.
Under the gold-deposit plan, investors can deposit a minimum of 30 grams with banks to earn interest, and at maturity either redeem the gold or cash, according to a government statement in June. Banks holding the bullion will be free to sell or lend the gold to jewelers, thereby boosting supply. The planned sovereign-bond issue will be open to investors from Thursday up to Nov. 20, the Reserve Bank of India said on Nov. 3.
So how is the scheme working out thus far? Not well. Not well at all.
Reuters reports:
India is trying to persuade rich temples to deposit some of their gold hoards with banks to revive a plan to recycle tonnes of the precious metal and cut gold imports, sources said.
The scheme has only attracted about one kilogramme in a month, prompting the government to nudge temples through banks to hand over their treasures, the sources said, but at least one temple said it was still unconvinced by the plan.
In a bid to reduce the economically crippling imports, Prime Minister Narendra Modi launched the much-publicised scheme to tap a pool of more than 20,000 tonnes of gold lying idle in homes and temples.
"Convincing retail consumers is not an easy task, it takes time,” said a senior official with a state bank, who declined to be named. “We’re planning now to focus on institutions like temples.”
But Mumbai’s two-century-old Shree Siddhivinayak temple, which is devoted to the Hindu elephant-headed god Ganesha, said it remained unconvinced about the benefits.
Modi wants temples to deposit some of this with banks, in return for interest and cash at redemption. The government would melt the gold and loan it to jewelers.
A finance ministry official said if banks fail to win over temples, the government could intervene directly by talking to the temples as it is looking for a big boost to the scheme to keep both imports and the current account deficit under control.
Well sure. As is standard operating procedure with government, if voluntarism fails, use coercion.
Despite offering slightly better interest rates than past schemes, the government is finding it difficult to break families’ attachment to their jewellery. Gold is used mainly as wedding gifts, religious donations and as an investment.
“After melting, banks will deduct impurity that will cut the net weight,” said Narendra Murari Rane, chairman of the trust for the Siddhivinayak temple.
The temple, which has 160 kg of gold and is partly plated in the precious metal, is nevertheless examining the scheme.
The Tirupati temple in Andhra Pradesh state will hold a meeting soon to consider participating, an official said.
You’ve been warned.
* * *
For prior articles on this topic, see:
A Warning to Indian Citizens – Your Government Wants Your Gold
India’s Central Bank Will Sell Gold on the Market in Exchange for Gold at the Bank of England
Gold Smuggling Increases 7x in India and Surpasses Illegal Drug Trade
Indian Temples Fight Back Against Government Gold Grabbing Plot
»
- 29 reads
- Printer-friendly version
- Send to friend
- advertisements -
But if it's a Barbaric Relic, why bother with such trifles?
Print MOAR Rupees!
Indian government: damn, there is just too much GOLD entering our borders. This is a threat to national security!
"The government would melt the gold and loan it to jewelers."
LOLOLOLOLOLOLOLOLOLOLOLOL!
I'm not a fan of gold, but I am also not a fan of grade A government bullshit.
First they come for your gold.
Then they'll come for your other ASSets :O
http://goo.gl/VhZdyZ
I am pretty sure this has to do with the upcoming switch to SDR's at the IMF, and our impending one world currency.
"In a bid to reduce the economically crippling imports, Prime Minister Narendra Modi launched the much-publicised scheme to tap a pool of more than 20,000 tonnes of gold lying idle in homes and temples."
If the 20,000 tons of gold were converted to cash as deposits in Indian banks, their reserve value would be way higher like by $700 Billion US.
"Hi. I'm from the government and I'm here to help you..."
The Government of India makes these efforts under US pressure.
What does it mean?
This means that in Washington knows for sure: the price of gold will soon begin to grow.
This scheme is not going to work.
Gold monetisation scheme is impractical. Banks must pay interest, but there exists a problem. How will banks use this gold? They r supposed to lend it to others. Lack of such demand will make interest payment unviable.
People's gold has sentimental value in India. The scheme purposes melting this gold into bullion. Simply put, you won't get ur original jewellery. People won't accept this.
Again, if interest is too low, it discourages depositing. But if interest is too high, ppl will buy gold and deposit, thereby increasing import of gold.
People invest in gold because it's a safe asset. To stop this unproductive investment, we must make Indians invest in capital market. This requires high rate of returns (high gdp growth implied) and more importantly, financial and market literacy, along with simplification of procedures.
Basically: till society is more developed, literate and modern, gold demand will not slow. Government knows this stuff. They are not complete idiots.
I think you have it backwards. I've spoken with wealthy people from India who understand quite well how money works. The tradition is based on old lessons of history, especially in India, where there is a long and terrible legacy of corruption. It's the above-quoted 'state banker' who needs to get clear. Keeping wealth out of the system is the whole point.
No, I think the fiat temple has pretty much reached the end of its useful life for this cycle. We're at the stage when every bankster franchise begins printing to beat hell, trying to outpace the others, trying to reflate the bubbles. It's why the elites hoard gold. They aren't fooled.
We have a contraction coming like nobody can imagine. It's gonna be one for the ages. Thank you, central banksters.
QUIT CALLING MY PET ROCK A BARBARIC RELIC!!!!!!
"Modi wants temples to deposit some of this with banks, in return for interest and cash at redemption. The government would melt the gold and loan it to jewelers."
They aren't even trying to hide the fact that they intend to run a price suppression scheme. They don't even have the sense to want the gold for themselves as the US Govt did in the 1930s. No matter how low we sink, we always have our eyes on something lower.
Though they did blame gold for "crippling" the economy which is pretty good for a pet rock.
Non story you won't get between and Indian and his Gold period.
Come and get it! Mole on labia
The Indian Government does that too! On a scale unimaginable outside India.
hahaha! these crooked/stupid government people dont get it haha
Stupid Government of India does not know what need to offer the public to exchange their gold for Bitcoin! LOL!
Good thing that Indians believe in reincarnation cuz they won't be getting their gold back in this lifetime.
False hope anyway when they learn the temple has already been rehypothicated a half dozen times.
"
Come on, they get back something better: colorful official paper pieces, 0s 1s on bank magical computer system. These things value not in physical plane as the lump of yellow metal rock. Value resides plane of ethereal imaginary and therefore quasi-spiritual.
Of course, that realm spirits away from goodness probably will tend.
They can remove the gold plating on their temples and decorate the inside with the wall paper the government gives them back.
People will soon understand the real crooks are paid by the taxpayer.
When you have cops stealing from the baseball fund it's beginning to sound more like Mexico.
Politicians elected by the people are being paid much more by the lobbyist, so their not for the people.
They have been through this before which why not long ago in Thailand they found a gold Buddha inside a stone Buddha. Being that thieving govs can't help themselves you have to wonder why they keep using gold for their most beloved artifacts and temples. Maybe they know the shit will hit the fan if they come for their temples.. seems like a risky ploy though.
This 5 ton Buddha?
http://thebuddhasface.blogspot.com.au/2011/07/largest-solid-gold-buddha-...
That makes me want to convert.
Modi: "It's for the bankers chilrun!"
#AwakeYet? ;-)
In India, 80% banks are Government owned! So it is for the children of the politicians, officers and rich men.
I don't think the gods will take kindly to this scam. Sacrilege!
Governments will take anything that is not nailed down!
And for everything else there is.....eminent domain.
And MasterCard for all your needs.
Their banks take the gold, go broke before they make an interest payment and then what have you got? A promise and a piece of paper...kinda reminds me of fiat currency.
Wait! Why does the gov't want a near-useless commodity (accept for jewelry) that keeps going down in price? What's the difference if gold comes across the border into the country? Are there too many furs or luxury cars coming in too? I just don't get it. It's just a pet rock, they say.
Guess I'm just not as smart as the Indian.gov is.
Violates the 'free-trade-agreement' is what they are saying. Doesn't sound very free to me.
do as I say...
- If the gold - it's not money.
- If the gold - is a barbaric relic of the past.
- If the gold - is a stone animals.
- If the gold - it does not important.
- Why is it so very important to keep secret from peoples, about how many gold reserves at Fort Knox right now?
"The richest Hindu temple in the world could soon come to the rescue of Prime Minister Narendra Modi's plan to recycle tonnes of idle gold and cut economy-hurting imports. The gold monetisation scheme, aimed at persuading individuals, institutions and rich temples to deposit some of their gold stash with banks to recycle, has only attracted about one kg in a month out of a total hoard of over 20,000 tonnes.
But the Sri Venkateswara Swamy Temple, popularly known as the Tirupati Temple that is believed to have been the abode of Lord Vekateswara for 5,000 years, may become the biggest contributor with more than 5.5 tonnes of gold. "It's a good scheme," said Yanamala Ramakrishnudu, the finance minister of Andhra Pradesh, where the temple is located. "We have already issued a directive to go for the scheme."
http://in.reuters.com/article/india-temple-tirupati-gold-modi-idINKBN0TN...
as Bugs would have said - "what a Maroon...."
It is a good scheme for somebody. Yanamala is probably getting a kick back if it happens.
No, Actually Tirupati Balaji temple, the (second) richest Indian temple is run by the Government of Andhra Pradesh - an Indian state. The minister is simply towing the government line. He wont get any kickback - as most of this gold already stored in the banks' vaults - and the banks are government owned! It is only paper accounting.
By the way, this temple has recently overtaken Tirupati, after opening its treasury where a few billion dollars' worth of gold and silver artefacts are stored - https://en.wikipedia.org/wiki/Padmanabhaswamy_Temple#Temple_assets
No, Actually Tirupati Balaji temple, the (second) richest Indian temple is run by the Government of Andhra Pradesh - an Indian state. The minister is simply towing the government line. He wont get any kickback - as most of this gold already stored in the banks' vaults - and the banks are government owned! It is only paper accounting.
By the way, this temple has recently overtaken Tirupati, after opening its treasury where a few billion dollars' worth of gold and silver artefacts are stored - https://en.wikipedia.org/wiki/Padmanabhaswamy_Temple#Temple_assets
Eventhough i am an atheist, i am offended by the indian govt stealing from the churches. In America we exempt churches from taxation. I wish i was a church.
Churches pay no taxes.
Buddha was a saint of poverty.
It is kind of silly for these types of relics that go against everything their deity was against no?
Churches should be poor.
No super churches and gulfstream junkets to israel to kiss a roman wall they jews claim as their own.
Government - gold is sitting idle
Temples and people - gold is sitting safe
It would be funny if they started taking apart their temples and placing them on barges outbound to some country that doesn't believe that they own everything within their borders. If a country like that existed.
That's why it's good why so few Americans own gold and silver. There is not enough payoff to compensate for the time and cost going after it.
As a side note, that's probably why the Roman emperor Constantine converted the empire to Christianity. He needed the gold stored in pagan temples.
In Hoc Signo Vinces
The "Golden Rule"........
Qui habet aurum facit praecepta
Was there any left by that time? I thought the Empire ran out of cash before Diocletian -- he's the one who imposed universal wage-price controls and payment-in-kind for just about everything, which suggests that even the government didn't have enough cash to pay its bills.
Also, most of the temples in the Empire had started out NOT being in the Empire, which means that they were sacked and looted when they were originally conquered. Most of their treasure would have gone into the private collections of Roman aristocrats soon afterwards.
Most Americans are too stupid to own Gold - fullstop. As are most Australians :)
People have made profits in housing and that seems to be for the most part IMHO where the average joe is interested in putting cash.
A mate bought a house this year. I went to his BBQ in summer and he said now hes bought this house with has life savings (cash) + small 2year mortgage he now intends to buy and let another because if you look back (not sure how far?), it has always gone up and I can get 500GBP per month for it renting to students. To get this buy to let he has guarantee it with his newly owned house, in effect he could end up with nothing and no roof over his head.
This is where QE his push hard savers like him because he had no intention of doing this before the banks devalued by printing whilst holding interest rates low.
Who needs gold.....when you've got a checking account statement with a whole lot of freakin zeros in it.
I'm so bloody rich!
No wonder there's so many reports about corruption within the Indian government and the ruling class.
Oops, sounds like here in the good ole U.S. I love my country, but sure wish its mis-management could be overcome.
"The government would melt the gold and loan it to jewelers."
Loan it? The jewelers will sell it. So the government can't get the gold back when needed. Indeed, lying and cheating is the norm, also with the Indian cheap trick politicians.
Good for the Indians. They know a Ponzi when they see it.
I still have a hard time believing that some moron would give any government 1kg of gold - never to be seen again.
From all I've seen and read of India, it's a hardscrabble life for the regular people. Any of them diligent enough to actually have a nice stack of bling is also savvy and sees through this gold grab.
Gold is savings and family treasure to them and much of it is in heirlooms. Those churches are heirlooms from their ancestors and hold great sentimental value.
The banks had better start thinking about a Plan B.
India stands for :
I
Never
Do
it
again
Another reason to load up on silver. Nothing against gold, just the ratio between the two, plus the Au consfiscation that govt's like to try once in a while.
I suppose the major governments expect people not to notice the following:
-----
#1: They call gold "irrelevant barbaric relic" and "pet rock".
... and then ...
#2: Want the people to give them their gold.
-----
You can't have it both ways, predators-that-be!
Either "gold is irrelevant, worthless, barbaric pet rock relic"...
... OR ...
... "gold is valuable and important".
Choose one. You can't have it both ways.
-----
The large governments are getting desperate.
- block imports of gold.
- attempts to get private gold.
- inability to return a fraction of German gold to Germany.
- endless massive naked paper shorts at lowest-volume times of day.
-----
Someday soon fiat collapses while gold and silver rocket past the moon.
The annunaki came for their gold.
Soon coming to Greece, and other governments near you!
"After melting, banks will deduct impurity that will cut the net weight," Which will be greater than the interest paid, guaranteed.
Deposit paper SPDR, will they still pay usery? ; )
India needs to address the root cause. India imports gold because Indian consumers want it. India has a massive current account deficit, presumably due to gold imports.The governmnt wants gold from temples to resolve the current account. Indian consumers want gold because the country has for decades experienced chronic persistent inflation, and they are gettting wealthier. The real solution is to end the chronic inflation that plagues Indian consumers. This will enable a meaningful real return on investments. Then the country will take off.
All the other ingredients are in place.
Get rid of those creepy statues etc
melt em down
take it away from the demon gods
can anyone explain to me why the indian government wants its citizens gold, after all it can print money, who needs gold when you can print paper, after all Ben Bernanke said gold is not money
I predict a highly publicized military attack on a treasonous temple withholding its gold from the Rothschilds the central bank.
If they nationalize the temples
thay would suddenly have silos of gold