India’s perilous gold stock situation and $40 premiums

(Mineweb) Higher gold imports have been curtailing the government’s efforts to stem the yawning gap in the country’s current account deficit. However, jewellers in the country are already facing the music, given the extremely perilous situation with low gold stocks and correspondingly high premiums of around $40 per ounce or more.

India has been the world’s biggest consumer and importer of gold, and most purchases are an essential part of Indian weddings and religious festivals. The country’s purchases of gold and silver shot up 138% in April to $7.5 billion, the highest so far this year, pushing up the country’s trade deficit to $17.7 billion. India had imported just 471 tonnes in 2000-01.

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4 Comments on "India’s perilous gold stock situation and $40 premiums"

  1. in shangai, retail gold bullion price premium is 60-80 dollars per ounce, most times plus some hanling fees.

  2. I want to ask, SRS or judein on your opinion about Martin Armstrong: http://armstrongeconomics.com/2013/05/20/silver-the-flash-crash/

    • Sinhue… I plan to do a few posts on Martin Armstrong. While I respect the man and his work on the Pi- cycles, he fails to take these two important aspects into consideration when he makes his forecasts:

      1) ENERGY
      2) DERIVATIVES

      Martin believes anything can be money. Even though countries in the past have used fiat money, all eventually failed due to money printing or loss of faith.

      Lastly, I find it quite hilarious that Armstrong points out that there WERE NO REAL BIDS for silver during the flash crash, but the FED makes sure there is always a BID FOR TREASURIES.

      steve

  3. Thanks for your comment, SRS. I think, He is heron for cartels and he strikes me as a complete technocrat. His prediction was fulfilled and therefore I read his prediction. I agree more with Dan Norcini.
    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/20_Incredibly_Important_Developments_In_Gold_%26_Silver_Markets.html
    Sorry for my english and thank you.

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