Gold Premiums Double In India As Demand Outstrips Supply

Tyler Durden's picture




 

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

WAR IS PEACE.

FREEDOM IS SLAVERY.

IGNORANCE IS STRENGTH.

From Reuters:

MUMBAI (Reuters) – Gold premiums doubled in India on Wednesday as suppliers struggled to meet surging demand after a ban on consignment imports, but futures prices fell to their lowest in more than a month as international gold prices fell due to a strong dollar.

 

India, the world’s biggest buyer of gold, now requires importers to pay upfront for inventory, making it difficult for smaller jewelers with lower working capital to source supplies. The government also raised the import duty to 8 percent in May to keep a lid on the surging current account deficit.

 

“There may be some demand from jewelers for raw material,” said Bachhraj Bamalwa, former chairman of All India Gems and Jewellery Trade Federation, adding that premiums charged on London prices shot to $20 an ounce on Wednesday from $8-$10 on Tuesday.

 

“We are unable to supply, though there is demand … we give deliveries after 2-3 days,” said Harshad Ajmera, proprietor of wholesaler JJ Gold House in Kolkata.

Enjoy the gold crash comrades.

Full article here.

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Thu, 06/27/2013 - 09:19 | 3698734 Bearwagon
Bearwagon's picture

Elvis just left the building!

Thu, 06/27/2013 - 09:21 | 3698737 Thorlyx
Thorlyx's picture

The beginning of the end...

Thu, 06/27/2013 - 09:23 | 3698746 NotApplicable
NotApplicable's picture

Gotta love that opening line.

It was the best of times. It was the worst of times.

Thu, 06/27/2013 - 09:32 | 3698776 CPL
CPL's picture

It was a dark and stormy night and benny was out of taco shells.

 

It just writes itself after that.

Thu, 06/27/2013 - 09:39 | 3698796 Pladizow
Pladizow's picture

Room 101 Bitchez!!!!!!!!

Thu, 06/27/2013 - 09:40 | 3698800 BoNeSxxx
BoNeSxxx's picture

My stack hasn't 'crashed'... it's still standing strong.

And it isn't for sale. <---- PERIOD

Thu, 06/27/2013 - 09:49 | 3698839 Meat Hammer
Meat Hammer's picture

How do you say "gold, bitchez" in Hindi?

Thu, 06/27/2013 - 09:53 | 3698857 disabledvet
disabledvet's picture

dowry.

Thu, 06/27/2013 - 10:10 | 3698912 francis_sawyer
francis_sawyer's picture

Those wacky Indians worried about 'premiums'... Don't they know that they could just go outside?... People are throwing it off their rooftops...

Thu, 06/27/2013 - 10:26 | 3698980 kliguy38
kliguy38's picture

anyone that doubts this is one big conspiracy just has to listen to CNBS and their "main" commentators and reporters as they attack gold as a "safe haven" with gusto......."unleash the dogs".......hehehehe

Thu, 06/27/2013 - 11:08 | 3699176 SilverIsKing
SilverIsKing's picture

Another tell is how the silver and gold prices move.  If this were an honest market, the prices would be more volatile.  Instead, we see the prices hold for a week or more in a tight range, then drop within a few minutes, then hold in a tight range for a while, then another drop in minutes.

The move from $21+ to $19+ to $18+ was textbook.

Thu, 06/27/2013 - 10:46 | 3699085 Al Huxley
Al Huxley's picture

If they would just lose their obsession with actually owning the physical metal, learn to trust the bullion banks and FIs, and get down with the paper gold like their govt tells them, they could enjoy much better prices AND no delivery delays and unlimited volumes.  WTF is wrong with them?

Thu, 06/27/2013 - 13:50 | 3699876 TeMpTeK
TeMpTeK's picture

3 dolla extra faw derivery

Thu, 06/27/2013 - 12:48 | 3699616 Getafix
Getafix's picture

"Sona, kutiye", hindi for "Gold, bitchez"... Couldn't resist... 

Thu, 06/27/2013 - 11:34 | 3699311 Svendblaaskaeg
Svendblaaskaeg's picture

"It was a dark and stormy night..."

My favorite: No one would have believed...

This sentence hit me like a hammer when the NSA scandel broke, subst "intelligences greater than man's" with "NSA":

“No one would have believed in the last years of the nineteenth century that this world was being watched keenly and closely by intelligences greater than man's and yet as mortal as his own; that as men busied themselves about their various concerns they were scrutinised and studied, perhaps almost as narrowly as a man with a microscope might scrutinise the transient creatures that swarm and multiply in a drop of water.”

 H.G. Wells, The War of the Worlds

Thu, 06/27/2013 - 09:24 | 3698749 Bearwagon
Bearwagon's picture

I really, really wish to agree. But my doubts can't be overcome, yet. I suspect it could just be the end of the beginning...

Thu, 06/27/2013 - 09:26 | 3698755 Levadiakos
Levadiakos's picture

You can deny that the price is falling but that won't alter reality

Thu, 06/27/2013 - 09:29 | 3698768 insanelysane
insanelysane's picture

The end doesn't begin until the governments lose control of the markets.  The markets may be broken but the governments still have some control over them.  We are inching closer to the cliff but it may take more time than most expect.

Thu, 06/27/2013 - 09:30 | 3698774 fonzannoon
fonzannoon's picture

and that may be an understatement.

Thu, 06/27/2013 - 10:08 | 3698909 Honey Badger
Honey Badger's picture

It will take a long time to happen, then when it happens it will be all at once.

Thu, 06/27/2013 - 09:39 | 3698795 Overflow-admin
Overflow-admin's picture

Time is relative to the amount of reserves in your portfolio?

 

Albert Einstein must be turning in his grave

Thu, 06/27/2013 - 09:52 | 3698854 new game
new game's picture

There is no end-period! Only ongoing shit-show with mangement by crisses-period!

So, how can you gain from their stupidity and ignorance of math?

AND,  faith is faith til the crisses of all mutha load crisses-the bond buble.

but, the end still doesn't happen, just the dark ages of monetary/petro dollar demise...

and even then it doesn't end, unless the nukes are launched.

Good day!(paul harvey tribute)

Thu, 06/27/2013 - 10:20 | 3698958 chubbar
chubbar's picture

You know shit is coming when the assholes in charge start passing legislation as outlined in this excerpt from an Armstrong article:

"GOP Senator Orrin Hatch introduced an amendment to the immigration bill that is the start of the American Iron Curtain requiring a mandatory biometric exit system at airports with the highest volume of international air travel, that even Senator Jeff Sessions (R-Ala.) wanted to do nationwide but without success previously. You will no longer be allowed to freely leave the the USA. Government will track you on a biometric basis. What’s next? DNA? This is not Paper Please! This is Papers Now!

There is new legislation that will impose not only a lifelong ban on Americans traveling if they renounce their citizenship, but if you have any money, they now want to impose an huge exit tax to leave. This is all about them getting money. Every bill is designed to strip citizens of their wealth to keep the debt rolling.

Senator Barbara Boxer (D-Los Angeles) in her highway bill to “reauthorize Federal-aid highway and highway safety construction programs, and for other purposes”  includes Section 40304 of the legislation which states that any individual who owes more than $50,000 to the Internal Revenue Service may be subject to “action with respect to denial, revocation, or limitation of a passport”. So in other words, if they think you owe any money, they can revoke your passport, put you under investigation, and you cannot travel until they say you do not owe anything. What does this have to do with highways?"

Thu, 06/27/2013 - 10:28 | 3698987 new game
new game's picture

no mun, no fun...

Thu, 06/27/2013 - 11:18 | 3699236 Thisson
Thisson's picture

Terrifyingly, this is true!  Here is a link to the bill:

http://www.govtrack.us/congress/bills/112/s1813/text 

 

Thu, 06/27/2013 - 11:10 | 3699190 Midasking
Midasking's picture

ALL ROADS lead to inflation.... when then market figures this out Gold and Silver will go far beyond imagination.. http://tinyurl.com/mem7o7x

Thu, 06/27/2013 - 10:35 | 3699016 Silveramada
Silveramada's picture

April 2.0 on record...

http://zysites.com/silververitas/

Thu, 06/27/2013 - 12:15 | 3699472 midtowng
midtowng's picture

Maybe the Indian customers will accept GLD instead?

Thu, 06/27/2013 - 09:21 | 3698738 Divine Wind
Divine Wind's picture

 

 

Indian stackers.

I like it.

Thu, 06/27/2013 - 09:34 | 3698782 youngman
youngman's picture

They don´t really stack it....they wear it..some incredible necklaces I have seen....google Indian Wedding...and look at the bling..

Thu, 06/27/2013 - 09:41 | 3698803 ParkAveFlasher
ParkAveFlasher's picture

THEY BRING AN ELEPHANT.  AND PUT GOLD ON IT.

 

Thu, 06/27/2013 - 09:21 | 3698740 SilverIsMoney
SilverIsMoney's picture

Buy MOAR Metals!

Thu, 06/27/2013 - 09:30 | 3698773 hankwil74
hankwil74's picture

Does anybody on this site have any fiat left with which to purchase metals?  Or are they out after "BTFD" at $1800, $1700, $1550, and $1350?

Thu, 06/27/2013 - 09:45 | 3698808 oddjob
oddjob's picture

Most stackers have paper coming in every few weeks. If the final move is crashing the economy, killing all the jobs, and leaving everybody unemployed, then bring it on.

Thu, 06/27/2013 - 09:55 | 3698863 EL INDIO
EL INDIO's picture

Many stackers bought cheaper than that and sold some at > $1800 then bought it back cheaper.

Thu, 06/27/2013 - 09:58 | 3698872 DoChenRollingBearing
DoChenRollingBearing's picture

Yep, I am one of those "most".

Thu, 06/27/2013 - 10:20 | 3698957 Levadiakos
Levadiakos's picture

Yep, I am one of those and have NOT bot back into this expensive fool's game.

 

I buy dollars

Thu, 06/27/2013 - 10:45 | 3699034 agent default
agent default's picture

For those who wonder.  Google  Levadiakos. The guy above is Greek.

Thu, 06/27/2013 - 10:46 | 3699084 Vooter
Vooter's picture

And he likes soccer...

Thu, 06/27/2013 - 10:52 | 3699109 samcontrol
samcontrol's picture

he also like being poor.

Thu, 06/27/2013 - 11:28 | 3699140 fuu
fuu's picture

and his name is an anagram for Vodka Aisle.

Note that none of these things actual mean he is right or wrong, they're just fun to point out.

Thu, 06/27/2013 - 11:51 | 3699379 francis_sawyer
francis_sawyer's picture

your name is an anagram for 'ufu'... I needed to use the WOPR to crunch out all the scenarios on that one... I hope the power grid in Coney Island didn't go down...

Thu, 06/27/2013 - 10:51 | 3699099 Al Huxley
Al Huxley's picture

That's going to work out well for you I'm sure.  The whole world is rushing to keep the USD as reserve currency.  You know why? Because everybody wants Americans to continue to enjoy an unjustifiably high standard of living, so they're tripping overthemselves to fund the US deficit.  That's why the dollar's got such a bright future.  Thanks to the rest of the world for making the sacrifices necessary to ensure every American can live well beyond their means.

 

If you're really greek, you probably just need to step out your front door to see how great this scheme is working out for you and your country.

Thu, 06/27/2013 - 09:23 | 3698741 Quinvarius
Quinvarius's picture

If the Fed is intervening in the gold market to the point miners are being forced to conduct layoffs and close mines, isn't that a violation of their full employment mandate?

I guess we don't care about that until the Fed decides they can control gasoline prices by attacking the gasoline futures market and the refiners all go under. 

Thu, 06/27/2013 - 09:24 | 3698750 insanelysane
insanelysane's picture

The irony being that once all of the mines are shut down, the supply of gold will be truly finite, and the price will rise like a rocket taking off.

Thu, 06/27/2013 - 09:30 | 3698761 Quinvarius
Quinvarius's picture

And a lot of miners will still be unemployed.  The Fed can wreck an entire industry because no one will invest in anything larger than a metal detector while the Fed is showing its economic ignorance and will to crush business.  But there is nothing they can do about true physical price discovery.  The mining industry will stay dead, much like farming stayed dead under Russian collectivism, even during a famine. 

Thu, 06/27/2013 - 10:03 | 3698889 disabledvet
disabledvet's picture

"spoken like a banker." good thing all you gold bugs got QE then cuz "that gold price never budged from 1929 to 1973." qnd it wasn't because gold was being mined all that much either. so sure...we have (declining) inflation which puts a bid in the metal...but not in India where the currency has collapsed (among many other countries in the world right now I might add.) prime demand SHOULD be coming from Germany...currently that does not appear to be the case however which is rather interesting.

Thu, 06/27/2013 - 10:13 | 3698927 Quinvarius
Quinvarius's picture

I would not consider myself a gold bug.  I see an underpriced financial asset. 

The US money supply was backed 140% by gold in 1980.  Now it is backed 10%.  Despite what is said on TV, gold is no where near a bubble.  It is the exact opposite.  When the CBs get tired of having their their fingers bent backwards and faces stomped by gold demand, they will just give up trying to sit on it. 

Thu, 06/27/2013 - 12:47 | 3699423 OneTinSoldier66
OneTinSoldier66's picture

"that gold price never budged from 1929 to 1973."

 

That's an out-and-out lie. Guess there's no shame in your game. Or perhaps you can explain away the time when FDR made it illegal for US Citizens(the people he was supposed to be a "civil servant" of) to own, and then turned right around and revalued it from $20.67/ozt. to $35/ozt. once they had forced the "citizens" to give it up to them(the Gov't.). Sure, it's great to be the King. Sucks for most everyone else.

 

I'm not really that much of a historian, but I can see the value in knowing some history.

Thu, 06/27/2013 - 09:35 | 3698788 TrulyBelieving
TrulyBelieving's picture

Yes, but once the supply of gold becomes finite it's quite possible only the banksters will profit. Confiscation being the new order for the day.

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