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India's Jewellers End Gold Strike As Government Caves On Excise Duty: Pent Up Gold Demand To Be Unleashed

Tyler Durden's picture


A month ago, after causing a spike in cotton prices following the imposition of an export ban, India promptly overturned said surprising move following a surge in protest from not only various trade local groups, but more importantly China, whose already razor thin margins would become negative if input costs soared even further. The whole process lasted about 72 hours from beginning to end. Days after, desperate to fund ongoing budget shortfalls, the government shifted its attention to price controls in a market it knew China would absolutely not mind to having the price kept artificially low - gold. What happened then was an announcement by the government to impose to levy an excise duty on unbranded jewelry. The response was swift - a countrywide strike among India's jewellers who all went dark, crippling demand from one of the traditionally strongest gold markets in the world. And all this happening at a time when the wedding season is at its peak, with Akshaya Tritiya, one of the biggest gold buying festivals later in the month, making the period crucial for jewellers. As of hours ago, the Indian finance ministry has caved, and while it took three days to end the cotton export ban, it took three weeks to end the excise duty proposal, India's Finance Minister Pranab Mukherjee said that the government would consider scrapping a budget proposal to levy an excise duty on unbranded jewellery. The result will be three weeks of pent up demand for precious metals being unleashed suddenly, likely pushing spot gold far higher, to where it would be had this latest artificial price control never been established.

More from Reuters:

"The strike has been called off today onwards. We will be starting our shops from tomorrow," said Kumar Jain, vice chairman of the Mumbai Jewellers Association.


Jain said the strike would resume on May 11 if the tax rollback does not materialise.


The strike was staged to protest against an excise levy on unbranded jewellery of 0.3 percent, and a tax collected at source on transactions worth more than 200,000 rupees. The annual budget also doubled import duty on gold to 4 percent.


The moves were game-changers for the $200 billion a year jewellery industry and experts had predicted they could cut gold imports by a third to 655 tonnes in 2012, allowing China to overtake India as the biggest gold importer.


The strike by jewellers resulted in a loss of 200 billion rupees, according to industry officials.

That is not quite correct: the loss will now become a disproportionate profit, as demand for gold, which never really left, but merely could not be satisfied, comes back with a vengeance. Think cash for clunkers inverted. The other impact will be a surge in gold imports, which in turn pushes demand for any kind of gold, paper and physical, rapidly higher.

Keep an eye on gold futures when they open for trading later this afternoon.


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Sun, 04/08/2012 - 11:27 | 2326128 LetThemEatRand
LetThemEatRand's picture

I wonder what all the anti-organized labor types here will do with the fact that a collective worker strike had a positive effect on Gold and free market demand/pricing.  Isn't that like matter and anti-matter coming together?  Sure doesn't fit into the black and white ideological mold very well.

Sun, 04/08/2012 - 11:32 | 2326133 CH1
CH1's picture

Binary politics is brain poison.

Sun, 04/08/2012 - 12:36 | 2326224 Cadavre
Cadavre's picture

Read an article making the case for gold price manipulation from 2000. through 2012

Buy and hold physical gold increased about 7 fold (or so).

But, a short futures position, opened at NYSE open, and then closed at NYSE close, netted a 1500% return.

Guessing Indians should have been acquiring gold at, or before, NYSE close. India does weird stuff  sometimes - so it seems - they buy bulk gold at market (haven't they heard of the "darkpool")!


Sun, 04/08/2012 - 12:48 | 2326240 Colombian Gringo
Colombian Gringo's picture

I read the same paper and it seems to ring true. The paper games played in NY and COMEX have screwed many an investor, and nary a regulator in sight.  After MF Global, however,  with blatant corruption and fraud staring us in the face, the marks are leaving what is obviously a rigged game. The Banksters overplayed their hand, funds are draining out of the CRIMEX and into international exchanges where they have less control.

Two years from now, I have no doubt that my physical will be worth more in USD.

Sun, 04/08/2012 - 13:14 | 2326289 Straying from t...
Straying from the flock's picture

Well put.  I am glad to see that more are awake and trying to spread the word.  One of the main issues is that we were born into slavery and debt bondage.  Manipulation is just the word now being used to codify what has been hapening to us all along.

It is the normalcy bias that keeps us from standing up for ourselves.  Separate yourself from the herd.  Soon there will be a new paradigm and those not aware will be fodder for the masses.  People do many odd things when you take away their future.

Sun, 04/08/2012 - 13:49 | 2326349 NewThor
NewThor's picture

Happy Easter, bitchez!


Sun, 04/08/2012 - 14:38 | 2326428 qqqqtrader
qqqqtrader's picture

Gold Silver Chart - YoY Performance


+1 keep posting charts

-1 stop posting charts

Sun, 04/08/2012 - 16:12 | 2326545 jomama
jomama's picture

i'm feeling a lot better about recently dumping the paper i could into metal (again).  thanks for the great charts, as always!

Sun, 04/08/2012 - 14:38 | 2326430 I think I need ...
I think I need to buy a gun's picture

a suspicous gold tax


Sun, 04/08/2012 - 11:33 | 2326140 Cultural Capital
Cultural Capital's picture

I love it how the gold bugs don't have faith in ETF's yet think a gold 'backed' currency is the solution. They don't have faith in government while it pumps out fiat, yet believe that somehow a 'goldstandard' will end the manipluation madness/gangsterism lulz.  Dreams are free= lulz. 

Sun, 04/08/2012 - 11:35 | 2326143 CH1
CH1's picture

Doesn't sound like the "gold bugs" I know.

Sun, 04/08/2012 - 11:37 | 2326156 DoChenRollingBearing
DoChenRollingBearing's picture

Completely agree.  FOFOA for example has a completely different take...

Sun, 04/08/2012 - 11:46 | 2326171 Oh regional Indian
Oh regional Indian's picture

Well DCRB, more and more FOFOA seems to be a shill-ing. ;-) 

GOld is looking mighty skittish to me.



Sun, 04/08/2012 - 11:51 | 2326187 DoChenRollingBearing
DoChenRollingBearing's picture


Hey I like gold OK?  I only shill my blog...  But, I have nothing to sell there, you can't even donate!

Sun, 04/08/2012 - 13:54 | 2326355 NewThor
NewThor's picture

As much as I love Zerohedge.

some of the people here are too in love with

their gold.

Sure. Gold and Silver are the only 'sound' money on the planet, but in an economic collapse situation gold can bring you just as much trouble as it can bring you wealth.

I continue to recommend building a good strong team of people around you for the coming events of 2012.


Sun, 04/08/2012 - 14:12 | 2326388 Thecomingcollapse
Thecomingcollapse's picture

Amen brother!!

Sun, 04/08/2012 - 14:20 | 2326400 Dapper Dan
Dapper Dan's picture

I continue to recommend building a good strong team of GOLD people around you for the coming events of 2012.


Sun, 04/08/2012 - 14:27 | 2326414 NewThor
NewThor's picture

It's not wise to make


the new Currency


the new Religion.

Study history and mythology

if yee seeks the truth

on this matter,

or for the 'Curse of Goldlust' quick lesson,



Me and my posse don't need no stinking badges,

but we wear them because it gives us

+100 to charisma, bitchez.



Mon, 04/09/2012 - 03:59 | 2327371 silverdragon
silverdragon's picture

New Thor,

Agreed lots of Silver, some Gold and a few good businesses whose fortune you can directly and positively impact through hard work and smart decision all providing cash flow.

Sun, 04/08/2012 - 11:36 | 2326153 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Correct. It's less the what and more The Who.

Sun, 04/08/2012 - 17:08 | 2326598 wee-weed up
wee-weed up's picture

I can see for miles and miles..., bitches!

Sun, 04/08/2012 - 11:44 | 2326170 the 300000000th...
the 300000000th percent's picture

Maybe we need to let there be competitive currencies on the free market and give the government a run for their money, pun intended. Insted of a Government controlled "gold backed" currency which none of us can be sure any gold is backing it. 

Sun, 04/08/2012 - 13:55 | 2326358 NewThor
NewThor's picture





Reset Button.

Sun, 04/08/2012 - 13:44 | 2326337 IAmNotMark
IAmNotMark's picture

I love it how the anti-gold bugs seem to be so closed-minded.  They don't know why some people have a different opinion and philosophy about life and are reduced to displaying their ignorance by critisizing something that they really don't understand.


Sun, 04/08/2012 - 16:08 | 2326541 jomama
jomama's picture

categorically lumping all gold bugs into one-in-the-same lot, all who want a gold-backed currency, is disingenuous.  what you seem to be twisting around to suit your viewpoint is that most gold bugs disavow the current, heavily manipulated fiat paradigm.

a currency that would have a the longest longevity would be a basket of global currencies and commodities, for the most stable value, and least susceptibility to manipulation.


Sun, 04/08/2012 - 17:56 | 2326656 Uchtdorf
Uchtdorf's picture

Yep, it's called a strawman argument and it's getting very boring.

Those who use such paltry weapons can't demonstrate a single incident when a fiat currency worked out for the benefit of the masses. 

Sun, 04/08/2012 - 20:01 | 2326838 tmosley
tmosley's picture

Free banking is the best answer.  Multiple private institutions issue gold backed currency, or unbacked currency (or any other form of currency) if the market demands it.  They compete with each other, and redeem each other's currency, just like they did during Scottish Free Banking.  People can transact in specie if they don't want to participate in that system.

Simple.  Free.  Resilient.  No wonder these idiot partisans hate it so much they feel the need to tell lies about anyone even vaguely associated with the idea.

Sun, 04/08/2012 - 21:01 | 2326944 StychoKiller
StychoKiller's picture

Ya can't print Gold, and Banksters do fractional reserve lending (<100%) at their own peril!  Sorry, but FRNs and other Fiat Munny is easily made into a dishonest system.

Sun, 04/08/2012 - 21:34 | 2327000 tmosley
tmosley's picture

Any kind of money is fine, so long as all parties know in advance what they are dealing with, and they get a choice.

I, for one, would be quite happy to deposit my silver into a free banking system bank that uses fractional reserve lending, for the right amount of interest, especially if they are an institution that takes very little risk with their lending.

Fractional reserve lending is fine, but only if the depositor knows what he is getting into.  There should also be a clause in the contract providing for denial of deposit redemption requests for a certain period of time (generally a year) with a higher rate of interest paid to the depositor by the institution during that time.  Of course, other banks will often buy out the depositors of that bank, sometimes for a fraction of face value, but generally at face value, and use that as leverage to put the sub-par bank out of business.  Fear of just this sort of thing happening is what made Scottish Free Banking so resilient, with few if any bank runs during that time period.

Sun, 04/08/2012 - 11:35 | 2326149 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I rather think America's black and white ideology is alive and well.

Sun, 04/08/2012 - 13:57 | 2326362 NewThor
NewThor's picture

Yin and Yang, bitchez!

Sun, 04/08/2012 - 11:38 | 2326160 Venerability
Venerability's picture


I am thrilled you made that comment! because I can re-post here what I just said on a thread elsewhere, where a poster named "GlocksandGold" was aiming to be pro-Gold but anti-Paul Krugman and his Stimulus stance:


You are being blinded by your biases, if you are actually a long-term Gold Bull.

The very best thing for the Gold sector is for Progressives to embrace Gold as avidly as Libertarians have.

If we could somehow "convert" Dr. Krugman, it would be THE coup of the Millennium for Gold Bulls.

And that depends on Gold sector veterans ceasing and desisting with the Gold Against Stocks or Gold Against Any Particular Currency - which are highly INaccurate in this Post Dow Theory environment and Post Dow Theory WORLD!

We need to convince Dr. Krugman and others like him that Gold now represents GROWTH and Fairness and Market Neutrality - which it does.

Gold represents the end of the World's Monetary Reserves being dominated by any one Empire Currency and coming to reflect a Conservative AND Progressive fair and neutral balance of currencies based on the increasing, not decreasing, inter-relatedness of the World Economy and World Trade.

And Gold directly reflects the inexorable rise of a viable bourgeosie - a consuming middle class - in that one-half of the planet which has not had one before.

That one-half of the planet corresponds very, very closely with those parts of this earth which have been Gold-loving and Gold-covetous since the days of the earliest hominids: China, India, the rest of Asia, the Middle East, Africa, and Latin America.

Telling this one-half of the planet that "Your culture is simply wrong, and ours is right" leads to horrors like the Chinese teenager who just sold his kidney for an I-Pad!

For the US and UK to tell this one-half of the planet that Gold is somehow a "barbaric relic," while thousand dollar pieces of cloth from Michael Kors, 6 dollar coffee drinks from Starbucks, 200 dollar sneakers, 150 dollar yoga outfits, 300,000 dollar sports cars, 50,000 square feet mansions in Greenwich or San Marino . . . etcetera to the etcetera-Nth . . . are "good" and "civilized" . . . Does one wonder why most people on this planet find the American Empire, based on pure silliness and lack of respect for every other country, WORSE, not better, than those previous Empires, which at least openly proclaimed their agendas, based on . . . Well, stealing resources, the agenda for all Empires at their root.

Since Dr. Krugman and Rich Trumka and everyone else in the Progressive camp DOES understand why Emperor Dollah! Dollah! Dollah! is Bad! Bad! Bad! - why is it so difficult for them to take the next philosophical leap and understand that Gold, the Stateless Currency, the Mediating Currency, and an important Counter to Cultural Imperialism is Good! Good! Good! for continued Progress on this Planet?

Sun, 04/08/2012 - 12:02 | 2326168 LetThemEatRand
LetThemEatRand's picture

What about my post suggested I am anti-gold?  I would love to see the TBTF private banks stripped of their power to create fiat.

But you lost me with this one:  "Telling this one-half of the planet that "Your culture is simply wrong, and ours is right" leads to horrors like the Chinese teenager who just sold his kidney for an I-Pad!"

I think that is just blind consumerism.  People will want stuff whether it's priced in paper or PMs.  If a kid sold his kidney for monster box of silver, would you blame silver?

Sun, 04/08/2012 - 13:59 | 2326364 NewThor
NewThor's picture

The only way to 'covert'  Dr. Paul Krugman is to pay him more money than Bernanke and Geithner are doing.

Do you have a fleet of digital printing presses on your iphone?

Didn't think so.


waste NO time on the thought, yo.

Sun, 04/08/2012 - 12:35 | 2326218 WAMO556
WAMO556's picture

Venerability - I give you a +1 UP GREEN ARROW - for a good write that makes one go "hmmmmmm" - it is not often, that someone can do this, and I like my targets substantial so that they may know what is coming. Thank you, please continue.

Sun, 04/08/2012 - 13:58 | 2326363 Temporalist
Temporalist's picture

"We" don't need to do anything but continue doing what we believe in. "They" will continue their manipulations and it will eventually collapse like every ponzi.


Krugman is a laughing stock and his own peers don't listen to him any longer only morons like Bill Maher still quote him or read his articles.


All the rest you wrote is noise.


Gold is already a currency it is quite obvious to any but the lying central banksters and their media propagandist whores who, if they believe their own bullshit, are woefully unprepared.


The dollar is collapsing under its own hegemonic weight and even dense observers with the greenest dollar colored glasses on can see the headlines that have been appearing with much more frequency over the past several years about the emerging countries tiring of the US and its petrodollar, as well as gold having a place in global finance (e.g. Robert Zoellick).


The propaganda has increased ten-fold in the past year alone.  Even the pleebs are aware of the media bias and they are tuning off the propaganda news grinder for alternate sources (as evidenced by many "News" stations losing viewers).


Time and pressure...

Sun, 04/08/2012 - 14:02 | 2326368 NewThor
NewThor's picture

All fiat currency does is convert human time into paper money so the price of the human time can continue to be driven down.

depreciating paper money time + over population = Earth is a chinese Walmart

Sun, 04/08/2012 - 16:35 | 2326574 NewWorldOrange
NewWorldOrange's picture

chinese Walmart? is there any other kind?

Sun, 04/08/2012 - 17:17 | 2326602 swanpoint
swanpoint's picture

do me ... And FUCK Krugman!

Sun, 04/08/2012 - 12:41 | 2326229 The Alarmist
The Alarmist's picture

"I wonder what all the anti-organized labor types here will do with the fact that a collective worker strike had a positive effect ..."

It was hardly a collective workers strike. It was a collective merchants/taxpayer/employers strike, so it was harmonious to say the least with the natural order of greed.

Sun, 04/08/2012 - 12:52 | 2326248 tmosley
tmosley's picture

Organizing against government aggression is ALWAYS good.

Organizing against private aggression is ALSO good.  This is what Unions in the US USED to do.

Organizing FOR government aggression is ALWAYS bad.  This is what unions in the US NOW do.

The fact that you are an idiot continues to reassert itself.

Sun, 04/08/2012 - 13:07 | 2326273 LetThemEatRand
LetThemEatRand's picture

Totally lost on you is the concept that our government is supposed to be first and foremost for the people and by the people.  Your precious "productive class" of oligarchs have taken government over, and you blame government. Perhaps you've forgotten that during the industrial revolution unions were met with violence from private employers.   Government laws and force made it possible to unionize.  So when you talk about unions organizing for government aggression, you naturally include the concept of unions voting for politicians that will maintain their right to organize against private oppression and violence which history has proven will exist absent government push back.  Why is private oppression always a missing component of your thought process? 

Sun, 04/08/2012 - 13:34 | 2326324 Max Fischer
Max Fischer's picture



Did you know that tmosley's research is partially funded by the government, and that he spends quite a lot of time applying for government grants?


Another anti-government hypocrite.

Max Fischer, Civis Mundi

Sun, 04/08/2012 - 13:41 | 2326335 LetThemEatRand
LetThemEatRand's picture

No shit.  Why am I not surprised?

Sun, 04/08/2012 - 13:50 | 2326344 Max Fischer
Max Fischer's picture



Some time ago, he also admitted to writing science grants for the government in his particular field.  This is a guy who routinely applies for government money and then helps shill for them, too.  

Then, he logs onto the internet and goes to various websites ranting against the government and how worthless it is.

Imagine the cognitive dissonance!

Max Fischer, Civis Mundi 


Sun, 04/08/2012 - 14:12 | 2326389 LetThemEatRand
LetThemEatRand's picture

This is actually par for the course for literally every person I have ever met who identified with Ayn Rand.  It is a "do as I say, not as I do" crowd.  For example, I know a woman who went to public school from K through graduate school, and who -- after becoming a small business owner -- now wants to deprive the rest of humanity of her opportunities.  She cloaks herself in Rand's ideology and claims it would be better to do away with government funded school.  But in reality she simply doesn't want to pay taxes.   I understand selfishness and narcissism, but it drives me crazy that these people always try to say it is something more than that.  

Sun, 04/08/2012 - 14:24 | 2326409 DosZap
DosZap's picture

and claims it would be better to do away with government funded school.  But in reality she simply doesn't want to pay taxes.


I disagree, I think she, like most of us(esp the younger ones here), relaize the Public schools are nothing but brainwashing camps.She went through them, and succeeded on her own merits and desires.

This is a dead on 100% certainty w/the  State colleges..............finding a conservative Prof in one today is nearly impossible.

As far as taxes go, why should folks living in a home, or renting with ZERO kids have to pay for other folks kids?.

I know a LOT of Home Schooled kids, when they head out to institutes of higher learning, they are usually 2yrs ahead of their public school educated peers.

Sun, 04/08/2012 - 14:35 | 2326426 LetThemEatRand
LetThemEatRand's picture

I know, facts like the success of the publicly educated person I described are so inconvenient.  Back to theory and platitudes.

Sun, 04/08/2012 - 19:50 | 2326825 tmosley
tmosley's picture

Force everyone to be publicly schooled, claim that all of their successes are a result of public schooling.


Sun, 04/08/2012 - 16:22 | 2326557 WmMcK
WmMcK's picture

As far as taxes go, why should folks living in a home, or renting with ZERO kids have to pay for other folks kids?

Maybe they shouldn't as long as they don't expect to be supported in the future (by Social Security, Medicare etc).

Sun, 04/08/2012 - 16:02 | 2326535 jomama
jomama's picture

for someone who loathes Rand as much as you do, you sure do seem hung up on her ideology.

me, i could give a shit either way.  it's just another viewpoint.

Sun, 04/08/2012 - 19:38 | 2326814 tmosley
tmosley's picture

I know!  I met a freed slave once who wanted to deprive other slaves of the opportunities she had as a slave!

What a bitch!

Sun, 04/08/2012 - 19:37 | 2326811 tmosley
tmosley's picture

When, exactly, have I ever "shilled" for the government?

You are off your rocker.  Typical Republicrat.

Writing grants is quite differnt from stealing money to fund them.  I would give it all up in an instant if it meant that the money would go back to the taxpayer.  But it won't.  It will go to someone else that won't do any REAL work, or worse, go to fund the military instead.

Sun, 04/08/2012 - 19:35 | 2326804 tmosley
tmosley's picture

Probably because you apply any and all negative characteristics to your enemies, thinking they are mutants of some sort?

Sun, 04/08/2012 - 19:42 | 2326818 tmosley
tmosley's picture

Hurr durr, judge government by what it is supposed to be, not by what it is.

Communism is awesome!  The theory is the fact, after all!  The fact is meaningless.

If you like unions so much, why don't you let your workers unionize, you fucking hypocrite?  Oh, would that cost you money?  Maybe you should stop harping on the hypocracy of others, and address your own first?

But no, that would be something that only an honest person could do.  You would rather place the blame on others, and conflate all evils such that they are THEIR fault.

What a shitstain you are.

Sun, 04/08/2012 - 21:07 | 2326954 StychoKiller
StychoKiller's picture

TMosley stated:

Organizing against private aggression is ALSO good.  This is what Unions in the US USED to do.


Reedin' compreehenshun iz a reel problum 4 ewe!

Sun, 04/08/2012 - 17:25 | 2326606's picture




LetThemEatRand said: I wonder what all the anti-organized labor types here will do with the fact that a collective worker strike had a positive effect on Gold and free market demand/pricing.  Isn't that like matter and anti-matter coming together?  Sure doesn't fit into the black and white ideological mold very well.


It would appear that those who went on strike were shop owners. So rather than labor it was management that went on strike just like Rand's characters in Atlas Shrugged. How do you feel about that?


From the article: "The strike has been called off today onwards. We will be starting our shops from tomorrow," said Kumar Jain, vice chairman of the Mumbai Jewellers Association.

Sun, 04/08/2012 - 21:38 | 2327005 StychoKiller
StychoKiller's picture

Blast!  Sometimes hard facts just cannot be pounded into the shape that supports yer argument.  Nice try, LetThemEatRand!

Sun, 04/08/2012 - 17:27 | 2326616 fightthepower
fightthepower's picture

Fuck you Bernanke!

Sun, 04/08/2012 - 11:33 | 2326129 CH1
CH1's picture

Don't be shocked if TPTB have a few more "market dislocations" lined up.

Nationalizing a few mines might keep mining stocks in line for a little longer, for example.

Still, one of these days, they will fail to plug a dyke... and then they drown.

Sun, 04/08/2012 - 11:40 | 2326162 DoChenRollingBearing
DoChenRollingBearing's picture

So many references to poor Blythe...   ;-)

Sun, 04/08/2012 - 11:48 | 2326176 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

She did it to herself, trotting out lies, excuses, and more lies....

For any weekend readers who missed it....

Blythe Masters On The Blogosphere, Silver Manipulation, Gold-Axed Clients And Doing The "Wrong" Thing:

Sun, 04/08/2012 - 11:51 | 2326185 LetThemEatRand
LetThemEatRand's picture

I think Tyler hit the nail on the head with his idea that Blythe was actually being honest.  She kept referring to the fact that JPM is simply doing the bidding of its clients in driving down the price of PMs.  The clients are the TBTF private banks represented by their ultimate protector the Fed.   

Sun, 04/08/2012 - 12:44 | 2326233 The Alarmist
The Alarmist's picture

At least she's a little more humble than saying they're "Doing God's work."

Sun, 04/08/2012 - 14:05 | 2326377 NewThor
NewThor's picture

You can only serve one master.

Each day Blythe the Blight looks more and more like

Leni Riefenstahl, who I am guessing regreted more

of her choices the closer she got to death.

Everybody finds God and the rest of the Universe

on their deathbed.


Sun, 04/08/2012 - 16:16 | 2326551 WmMcK
WmMcK's picture

But Leni lived for over a century ...

Sun, 04/08/2012 - 11:46 | 2326172 Stoploss
Stoploss's picture


Sun, 04/08/2012 - 14:07 | 2326378 NewThor
NewThor's picture

Dogs rule.

Sun, 04/08/2012 - 11:51 | 2326186 Hansel
Hansel's picture

And then they pull a Vietnam.

As per a decree issued by the Prime Minister’s office on April 3, gold has been banned as a medium for exchange, along with seven bullion-related activities that will take effect from May 25. The decree prohibits use of gold as a medium of exchange; manufacturing gold jewellery without a licence from the central bank; trading gold without a licence; and conducting any other gold-related businesses without the approval of the Prime Minister and the Central Bank.

Sun, 04/08/2012 - 12:45 | 2326234 The Alarmist
The Alarmist's picture

So we finally won the war after all.

Sun, 04/08/2012 - 14:08 | 2326380 NewThor
NewThor's picture

There is no spoon.

Sun, 04/08/2012 - 14:17 | 2326396 DosZap
DosZap's picture

 And then they pull a Vietnam.

Yep, and just created aHUMONGOUS Black Market.

Sun, 04/08/2012 - 17:50 | 2326645 wee-weed up
wee-weed up's picture

Yep, and just created a gold price that would be truely... "To the moon, Alice!"

Sun, 04/08/2012 - 11:27 | 2326131 achmachat
achmachat's picture

this will be interesting to see how long it takes for a sudden demand to reflect on the comex prices.

Sun, 04/08/2012 - 12:32 | 2326215 Manthong
Manthong's picture

Oh heck, how much can only a sixth of the world’s population affect the price of some old barbarous relic trading in a tiny market, anyway?

Sun, 04/08/2012 - 13:15 | 2326290 Amish Hacker
Amish Hacker's picture

Backwardation, Bitchez!

Sun, 04/08/2012 - 11:31 | 2326134 resurger
resurger's picture

Am sure Blythe wont be happy

Sun, 04/08/2012 - 11:33 | 2326142 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I would say Blythe should lift her shorts but I don't like the imagery.

Sun, 04/08/2012 - 11:59 | 2326191 resurger
resurger's picture


Sun, 04/08/2012 - 14:10 | 2326383 NewThor
NewThor's picture

Blythe hasn't been happy since the moment

she entered the service of the dark lord.

Greed ain't good, bitchez!

Sun, 04/08/2012 - 12:59 | 2326259 Colombian Gringo
Colombian Gringo's picture

I am sure that it couldn't be any worse than what your would find under Kari Norgaards dress (ugh!)


Sun, 04/08/2012 - 14:22 | 2326405 NewThor
NewThor's picture


let us not forget

Jamie Deemon is the #1 suit at JPM

Blythe is a few ladders down.

Sun, 04/08/2012 - 11:32 | 2326135 GeneMarchbanks
GeneMarchbanks's picture

'Keep an eye on gold futures when they open for trading later this afternoon.'

Had to check the address to make sure I was reading a ZH piece. Hopefully that was more of a note-to-self than a recommendation as if ZH readers aren't compulsively checking PM quotes every microsecond or so.

Sun, 04/08/2012 - 11:32 | 2326137 bugs_
bugs_'s picture

well there appear to be two kinds of gold strikes.  so much to learn from Zerohedge!

it is also nice to see the government of India capitulate on bad policy - of course they implement them first to see if they can get away with it - but they did capitulate.  This kind of thing is rather bullish for India and I think the 99% would like to see more of this world wide. 

Sun, 04/08/2012 - 14:11 | 2326384 NewThor
NewThor's picture

Ice age coming.

Ice age coming.

Throw it in the fire.

Throw it in the fire.

Sun, 04/08/2012 - 11:32 | 2326138 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold, bitchez

Sun, 04/08/2012 - 11:35 | 2326148 DoChenRollingBearing
DoChenRollingBearing's picture

Green arrow number one is from me, Mr Lennon!

Sun, 04/08/2012 - 11:34 | 2326145 DoChenRollingBearing
DoChenRollingBearing's picture

It will be interesting to see what spot does today & tomorrow.

Meanwhile you can get caught up on Barron's:


"Review of Barron's -- Dated 9 April"

Sun, 04/08/2012 - 11:37 | 2326155 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Come join chat, DoChen, you'll like it there  :)

Sun, 04/08/2012 - 11:38 | 2326159 DoChenRollingBearing
DoChenRollingBearing's picture

If I can figure it out, I will!  Thanks!

Sun, 04/08/2012 - 11:41 | 2326166 Mr Lennon Hendrix
Sun, 04/08/2012 - 14:13 | 2326390 NewThor
NewThor's picture

...but is chat filled with all the lovely ladies of Zerohedge?


Sun, 04/08/2012 - 11:36 | 2326152 The Axe
The Axe's picture

Monday will most certainly be a risk-off day, so any rally in gold may be met with strong selling. Both from margin calls and HF's . careful

Sun, 04/08/2012 - 11:39 | 2326161 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

World indeces look to fall through April, down 5% - 7%, but by no means will this lower the gold price.  Last time the indeces fell gold shot up.  I thin gold will consoloidate next week in the $1630 range before slowly moving higher into May.

Sun, 04/08/2012 - 13:17 | 2326299 beachdude
beachdude's picture

So maybe the correlation with equities will end once and forever.

Sun, 04/08/2012 - 14:15 | 2326395 NewThor
NewThor's picture

Everyone and their invisible goat

seems to know that the markets

will go




this week.

So don't be digitally shell shocked if the markets


+10% this week.


Sun, 04/08/2012 - 11:55 | 2326189 MFL8240
MFL8240's picture

Have to wonder which of the Wall Street gangsters was able to pull this one off?  Most likely with Bernakes help?

Sun, 04/08/2012 - 14:19 | 2326398 NewThor
NewThor's picture

I would never assume that


is in the hooded handshake get on your knees banking cartel

I doubt that China, Japan, Russia and India

are taking orders from

Nero's ghost and his pet Bull thing.

Sun, 04/08/2012 - 12:15 | 2326202 FranSix
FranSix's picture

Something ironic in celebrating jewellery demand when the basis for the gold bull market is pent-up investment demand.  You still don't see pensions funds acquiring bullion, save a few exceptions, and jewellery demand continues to be a key factor.  Perhaps assumptions surrounding jewellery demand and the gold market were wrong.

Sun, 04/08/2012 - 12:48 | 2326236 The Alarmist
The Alarmist's picture

Pension funds are under significant pressure to not invest in physical gold. More than one regulator has signalled that it would be considered an "imprudent" investment allocation.

Sun, 04/08/2012 - 15:30 | 2326491 FranSix
FranSix's picture

Her Majesty The Queen's holdings in the Right Province Of Alberta amounts to $4b. +, 20% weighted to the basic materials.  You'll see a huge shift in asset allocation here:

Here's an example of a small mining company with a pension fund holding, along with banks owning large chunks. You can see which institutions have been selling and which are buying.


Mon, 04/09/2012 - 03:04 | 2327348 The Alarmist
The Alarmist's picture

But in some countries, particularly those countries with pretentions to reserve currency status, gold is to be shunned.

Sun, 04/08/2012 - 12:23 | 2326204 evolutionx
evolutionx's picture
Three realistic Gold targets: $6,000 – $7,000 – $10,000:


  • In the 1971 to 1980 gold cycle, gold went from $35 per ounce to $850 or up over 24 times. If we were to see the same increase in this cycle, gold would rise to over $6,000.
  • The gold peak at $850 in 1980 corresponds to over $7,000 today adjusted for real inflation based on the inflation rate as calculated by John William’s Government Shadow Statistics (
  • Gold and gold mining shares were an average of around 25% of world financial asset between 1921 and 1981. Today, gold and mining shares are only 0.9% of world financial assets. If gold and mining shares were to go to 25% of financial assets, gold would go to over $31,000. But even if we assume that world financial asset would go down by 2/3rds from here that would put gold at over $10,000.


Sun, 04/08/2012 - 14:34 | 2326424 NewThor
NewThor's picture

The economy breaks at

Gasoline $5.00 a gallon or at Gold $2100 a troy ounce.

Having a dollar based investment strategy for a period

after the critical mass breaking point of the $ is beyond

silly, bro.

Sun, 04/08/2012 - 15:57 | 2326529 WmMcK
WmMcK's picture

OK, the gas part I can see, but why does Au @ $2100 (alone?) cause the economy to break? I'd think $55-70 (industrial) Ag would be more of a strain.

Sun, 04/08/2012 - 20:51 | 2326930 riphowardkatz
riphowardkatz's picture

because new thor said so. obvious

Sun, 04/08/2012 - 15:58 | 2326530 jomama
jomama's picture

you do mean $5.00/gal for 87?  it's already 5 bucks a gallon for premium here in NorCal, and has been for almost a month now...

Sun, 04/08/2012 - 16:01 | 2326532 FranSix
FranSix's picture

Just for the sake of interest:

Sun, 04/08/2012 - 18:12 | 2326667 Money 4 Nothing
Money 4 Nothing's picture

I appologise in advance, because I really did believe this could happen, but I really have to disagree at this point due to our sovereign current affairs. 

I do value your *opinion and I really hope that happens, I just don't believe it anymore given the current trajectory were on as a Nation, yet we sit on our PM's just hoping to break even if the bottom falls out. 

Thanks for your information though, I just hope to God your right.


Sun, 04/08/2012 - 12:27 | 2326212 AC_Doctor
AC_Doctor's picture

All hail the Indian AG dowry gift!!!

Sun, 04/08/2012 - 12:39 | 2326221 Gordon Freeman
Gordon Freeman's picture

If I never hear the phrase "Indian Wedding Season" again, it will be too soon...

The pro-gold forces are just as lame and fucked-up in their endless propaganda as the anti-gold contingent.

Sun, 04/08/2012 - 12:47 | 2326235 AC_Doctor
AC_Doctor's picture

Gee Gordo,  what is going to replace FIAT money, more govt. debt certs, edible I-PADS or shares of Lululemon?  The Indian people may surely be one of the wealthiest people, due to their individual PHYSICAL gold holdings, in a post-fiat collapse world that is coming around the corner as we chat...

Sun, 04/08/2012 - 13:11 | 2326282 Jendrzejczyk
Jendrzejczyk's picture

With 75%(?) of Indian households owning gold, a big revaluation would make one hell of a lot of slumdog millionaires. U.S citizenisms would shit a brick.

Sun, 04/08/2012 - 13:22 | 2326303 AC_Doctor
AC_Doctor's picture

Great point Jendrzejczy, the key element is holding PHYSICAL AU & AG. All the stupid sheeple shareholders of GLD and SLV may think they hit the jackpot when the pm's start their upcoming meteorotic climb, but all GLD and SLV are full of is unallocated, hyperhypothecated gold and silver IOU's which will crash and burn to zero, while making only the lawyers rich through their litigation service while investors will be lucky to get 5% on the dollar.

Sun, 04/08/2012 - 12:49 | 2326241 The Alarmist
The Alarmist's picture

Better than the "three months salary" diamond racket. You should see the stone I can get for three months salary, though.

Sun, 04/08/2012 - 19:54 | 2326830 Papasmurf
Papasmurf's picture

Escort services are cheaper.  And safer for your long term asset preservation.

Sun, 04/08/2012 - 12:57 | 2326254 SILVERGEDDON

Your comments are as retarded as your avatar picture suggests they would be given the act of opening your mouth. Facts trump market manipulation all day long. Now go buy some credit default swaps and derivatives just to prove the gold bugs wrong.

Sun, 04/08/2012 - 13:43 | 2326336 Gordon Freeman
Gordon Freeman's picture

Go fuck yourself, pinhead--and I mean do it today!

Sun, 04/08/2012 - 12:37 | 2326226 ballafun
ballafun's picture

There is n't much pent up demand, and the strike might resume sooner. Government of India has just fooled around with them, sort of delayed action.

This year the jewellers business is meek owing to very less no of auspicous dates for marraiges. Hence sales hasn't been able to keep the pace vis-a-vis last year and the dismal trend will continue for rest.

India is biggest consumer of GOLD, imagine the day Indians start making use of the high GOLD price and start selling GOLD, who will save the yellow metal...distant reality..but just building a opposite scenario.

The proportion of GOLD loan market in official channel via Banks and NBFCs is on rise and any delinquencies in their loan book shall trigger GOLD sales in open markets.


Sun, 04/08/2012 - 14:09 | 2326382 Quinvarius
Quinvarius's picture

Of course.  5000 years of gold being money might end because paper money is looking like such an awesome deal these days.  This will be the one time paper money manages to pull out of a nose dive.  Just like those Greek bonds, paper money may be mathematically doomed, but then again, if you don't don't do math, it might look pretty good right now.

Sun, 04/08/2012 - 17:50 | 2326644 Money 4 Nothing
Money 4 Nothing's picture

Operation under the assumption that were going to have a future to spend it in, then yes..

Sun, 04/08/2012 - 13:08 | 2326275 JJSF
JJSF's picture

Already long in a big way.

Sun, 04/08/2012 - 13:22 | 2326305 non_anon
non_anon's picture

no matter what country a gov grows, it ends up doing the same thing to it's citizens.

pooping on them!

Sun, 04/08/2012 - 14:20 | 2326402 lunaticfringe
lunaticfringe's picture

I read the thread. Particularly those folks who don't like gold.

Can unbacked fiat currency work? Absolutely. Now let me rephrase the question. Can an unbacked fiat currency work effectively for great priods of time? No. Historically fiat always fails. Why? Because men seek power and greed and they manipulate the quantity.

When I hear people state that they want to return to a gold standard- this is what I hear. That system worked fine. It also limited the quantity of currency. That works and it does.

All currency fails when the quantity of that currency is not controlled. It is that simple. When greedy men manipulate the quantity, then we have inflation, bubbles, economic catastrophes. In fact, that is the history of the FED encapsulated. They have been a horrible failure because it was never their "real" mission to provide currency stability. The "real" mission was greed. In that respect, the FED has been a marvelous success- if only for a few.


Sun, 04/08/2012 - 14:34 | 2326425 Uncle Remus
Uncle Remus's picture

Lots of shark jumping.

Sun, 04/08/2012 - 15:19 | 2326478 devo
devo's picture


Sun, 04/08/2012 - 16:30 | 2326565 orangegeek
orangegeek's picture

Gold is more expensive than Platinum.  That makes sense.


The Dow and SP500 are up about 18% in fourth months.  That makes sense.


The NASDAQ is up almost 25% in fourth months.  That makes sense.


Now Gold is poised to got to $5000.  That makes sense too.


Pardon me while I dip my fingers in mayonaise and gnaw on them for the rest of the day.

Sun, 04/08/2012 - 18:11 | 2326636 Money 4 Nothing
Money 4 Nothing's picture

We will see this week, but my guess to this topic..

India's Jewellers End Gold Strike As Government Caves On Excise Duty: Pent Up Gold Demand To Be Unleashed Will raise Gold prices? I could be wrong.
Sun, 04/08/2012 - 17:35 | 2326624 BobPaulson
BobPaulson's picture

Sorry, this is an off topic post but it is a good video of a child explaining the money as debt problem:

Please pass on and repost.

Sun, 04/08/2012 - 18:08 | 2326671 BudFox2012
BudFox2012's picture

Why do we care?  I though Helicopter Ben said gold wasn't money, so why would anyone want it?

Seriously though, I haven't really seen any info on this angle (I may have missed it), but I wonder how India's buying of oil with gold from Iran plays into this.  Maybe they were hoarding it like the Turks, or maybe they wanted to drive up the price of gold in dollars to cheapen their oil imports...

Sun, 04/08/2012 - 18:22 | 2326692 BudFox2012
BudFox2012's picture

The article suggested keeping an eye on gold futures when they opened.  Well, up $16 dollars at the open.  Until tomorrow, when 65 quadrillion ounces will be mysteriously sold at the market open.

Sun, 04/08/2012 - 21:26 | 2326988 market analist
market analist's picture

A bunch of Indian co-workers at work, eat amazing food and live cheap-cheap. They have families and kids increasing their demographics in Canada, unlike the native population. And they buy on average $4000 worth of gold jewellry every year for the wives and daughters, over and above financing more relatives to come over to our country. And they live as a team, working for each other, and eating healthy in small Indian communities that have more spirit than any block of condos or garden row of houses we can alienate ourselves in. Housing crisis? Cultural crisis? Gold crisis? They don't have any. So my work partner is Indian, and I like him most out of all my native work collegues.... What you going to do about it? He's also a gentleman, and one of the few in the construction industry that actually shows up to work everyday.

Mon, 04/09/2012 - 01:36 | 2327307 cnhedge
cnhedge's picture

gold has too much qe expectations.

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