India Bans Gold Exports "Without A Valid Reason"

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.

Comments

poetic justice asstrix Wed, 08/16/2017 - 13:17 Permalink

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-hUQReminds 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...

In reply to by asstrix

Latitude25 (not verified) tmosley Wed, 08/16/2017 - 09:24 Permalink

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.

In reply to by tmosley

Give Me Some Truth Latitude25 (not verified) Wed, 08/16/2017 - 10:50 Permalink

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."

In reply to by Latitude25 (not verified)