India Bans Gold Exports "Without A Valid Reason"

Tyler Durden's picture

Authored by Mike Shedlock via MishTalk.com,

In addition to its crackdown on cash, India stepped up its attack on gold. The aim is to cut down on gold imports. India does that in a roundabout way, by cracking down on exports.

india-gold

Bloomberg reports India Bans Gold Exports Above 22 Carats to Plug Trade Loopholes.

India has banned the export of gold products with purity above 22 carats with immediate effect, a move that the industry sees as a way of curbing irregularities in the trade.

 

The Directorate General of Foreign Trade issued a notice limiting shipments of jewelry, coins and medallions to 22 carats or below, without giving a reason.

 

“The move may be to reduce round-tripping of jewelry and coins, wherein a trader can import the gold coins or jewelry at a lower import tax because of trade agreements with some countries and re-export the same stock without any value addition,” said Ketan Shroff, joint secretary of the India Bullion and Jewellers Association Ltd. The exporters would benefit from not paying the 10 percent import tax currently levied on most inbound shipments of gold, he said.

 

Indian imports are said to have more than doubled last month from a year ago partly due to a jump in purchases from South Korea, with which India has a free-trade agreement. Importers have previously used free-trade treaties with countries such as Thailand and Indonesia to escape the import duty.

Round-Trip Nonsense

The stated round-trip reason is nonsense. If a vendor imported gold then immediately exported it, there would be no gain to the vendor other than random price fluctuations.

Prior to this announcement, a vendor could purchase gold and hold it until he had a profit, betting either on a price rise in gold, or a plunge in the Indian Rupee.

The new rule is not a crackdown on gold exports, it’s a crackdown on gold period. India wants to punish those who trade in gold.

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Bill of Rights's picture

Checks XAU...Up a buck and a half...

Croesus's picture

I don't blame him for wearing gloves...gold in India has probably spent some time in places its buyers don't want to know about.

BandGap's picture

Thank you for starting my day with that.

secretargentman's picture

As far as I'm concerned "I want to" is a valid reason. 

nmewn's picture

I'm thinking "a valid reason" to get your gold out of India would NOT be to keep the government from taking it from you?  ;-)

tmosley's picture

Also, they wipe with their hands and don't wash them after.

Manthong's picture

 

godammit...

spewed coffee on the keyboard again....

 

I might suggest though

The smugglers might want to start working with little silver bars….

There are antimicrobial benefits

 

Antifaschistische's picture

Note to Indians.

Kruggerands are 22 karat.   just saying....

ReturnOfDaMac's picture

So are eagles, trade 'em in and get RTN!  May need 'em with that little thing ya got going on with China, just say'n ...

Justin Case's picture

Canadian MapleLeafs .9999 gold

lasvegaspersona's picture

Ever try smuggling a few hundred dollars of silver...'where the sun don't shine'...Gold works much better....

asstrix's picture

I always wash with water, using my hand. And your old queen can't do crap about it. Much better than walking around with dry $hit.

Do you guys wipe your pets' clean after they crap? And your kids let them lick their face, huh?

 

actionjacksonbrownie's picture

How do you get the shit out from under your fingernails?

tmosley's picture

>Dogs are unclean

Mudslime detected.

rrrr's picture

Humans are also unclean. A recent university study found that if you go into an average grocery store and shop for groceries for forty minutes, the probability that you will get someone else's fecal matter on you is one hundred percent (100%).

poetic justice's picture

Is this "Turd World Australia"? Could be a false flag. It is pretty crap video and doesn't actually show the dirty deed being done.

https://www.youtube.com/watch?v=udIgStO-hUQ

Reminds me when I was India in the mid eighties. At Leh airport. The toilets were so disgusting and I had the good dose of the shits. What was I to do? When in Rome they say... So I left my calling card in one corner of the terminal.

 

Poetic Justice...

Buck Johnson's picture

Don't want the gold leaving the country.

 

 

T-NUTZ's picture

cue BTC surge...

tmosley's picture

Punishment is all oldbugs know. They can't imagine freedom. Get quite upset at the very concept.

Latitude25's picture

Freedom from 3rd party risk.  How much do you have with your net worth on a flash drive?

tmosley's picture

I was going to berate you, but I will let you expound instead.

EXACTLY what kind of third party risk do you think bitcoin has that gold doesn't?

Latitude25's picture

EXACTLY what percentage of people globally will recognize bitcoin as money, especially in a crisis. 

tmosley's picture

How EXACTLY is that an answer to my VERY SIMPLE question?

Do you even know the different types of risk, you ignorant fuck?

Latitude25's picture

I answer you with a valid point and you can only respond with insults.  Just shows you have no valid point.

Just to prove my point, if I go around my office an d show everyone my flash drive and tell them I have some valuable bitcoin on it, 99% will laugh me off as a fool.  If I do the same with a 22k wedding band, 99% will recognize that it has value and can be pawned for cash.  Recognition of vaue IS third party risk.

tmosley's picture

That is the stupidest form of risk to hedge against. What do your idiot cubical slaves have to offer you for your gold plated tungsten?

No, if you care what your idiot office mates think is money, stick to dollar bills.

Latitude25's picture

Universal recognition of value is stupid to you?  Name calling doesn't win you ANY debate.

tmosley's picture

Yes, very stupid, in a world consumed by universal deceit. 

Normies don't know money from what comes out of their ass in the morning. Why would anyone care what they think?

If you care, again, stick with dollar bills. EVERYONE recognizes those, even if they are increasingly worthless.

HenryKissingerBilderberg's picture

cryptos are GREAT for teleporting money around the world without government blockage or taxation, and if you are clever without traces...

gold can be traded in any city, any airport, any port, anywhere in the world

tmosley's picture

Any city, maybe. Any airport or port? Not in America.

Latitude25's picture

I guess you missed all the "we buy gold" signs.  I've never seen one that said "we buy bitcoin".

tmosley's picture

Because they can't scam you out of bitcion at 30 cents on the dollar.

Also, "we buy gold" shops in AIRPORTS? Not in my local one here, and I've never seen one in my travels.

Latitude25's picture

Yeah because all those Mt Gox bitcoin holders were impossible to scam.  You guys are soooo smart.

Bay of Pigs's picture

You are beyond help. I've taken gold and silver through airports for years in the USA and around the world with no problems whatsoever. Even through Vietnam.

Take your stupidity, delusions and PM propaganda and shove it up your ass you fucking retard.

tmosley's picture

Hahahahahaha, is that supposed to be a reply to something I said, or has your internal battle with your hallucinations just spilled out onto the internet?

Bay of Pigs's picture

Yes. You are factually incorrect. I guess reading comprehension is also a problem for you?

tmosley's picture

Please point out where I said anything about not being able to take gold or silver through airports.

Talk about delusional.

Latitude25's picture

Normal sheep do matter because they are ultimately what keeps an economy running.

tmosley's picture

Hahahaha, get shorn then.

Give Me Some Truth's picture

Re: "Name-calling" and "insults"

I have observed that those who excell at name-calling and insults do tend to control message boards. It's an effective technique to stiffle debate and intimidate those who might offer views that don't jibe with those of the unsilent majority.

Call these people out at your own risk. You will certainly be met with an overwhelming attack of even harsher insults and even stronger profanities and pejorative labels.  

Speaking for myself, I choose to remain silent and try to keep these people on my side. Or at least keep their ire directed at some other sad loser. I also always make it a point to give their attacks up votes as well. Never give them a down vote (I think they might take names and keep a list). Who knows? They might even know where you live and as horrifying as their bark is, I'd hate to face them behind the gym after school.

Of course, you don't have to follow my lead, but if you want to make it through 12th grade, you might consider employing this self-preservation strategy. Anyway, good luck. ... Ah, I mean, "shut up you moron."