• Tag Archives India
  • World Stock Markets, Gold, Boosted By Dovish FOMC Statement Wed. PM

    (Kitco News) – Global stock markets were mostly firmer overnight in the wake of a U. S. Federal Reserve meeting that produced a statement most of the markets deemed as leaning to the dovish side of U. S. monetary policy. Recent corporate earnings reports have also been mostly upbeat. U. S. stock indexes are pointed toward higher and record high openings when the New York day session begins.
    Gold is posting solid gains Thursday in the wake of the dovish Fed statement that pushed the U. S. dollar index to a 13-month low. Reports overnight said India is moving to make ‘paper’ gold (such as sovereign gold bonds) more attractive to its domestic investors, in order to reduce demand for actual gold bullion.

    This post was published at Wall Street Examiner on July 27, 2017.

  • Gold A Good Store Of Value – Protect From $217 Trillion Global Debt Bubble

    – ‘Mother of all debt bubbles’ keeps gold in focus
    – Global debt alert: At all time high of astronomical $217 T
    – India imports ‘phenomenal’ 525 tons in first half of 2017
    – Record investment demand – ETPs record $245B in H1, 17
    – Investors, savers should diversify into ‘safe haven’ gold
    – Gold good ‘store of value’ in coming economic contraction
    by Frank Holmes, U. S. Global Investors

    Gold’s medium- to long-term investment case, I believe, looks even brighter. Many unsettling risks loom on the horizon – not least of which is a record amount of global debt – that could potentially spell trouble for the investor who hasn’t adequately prepared with some allocation in a ‘safe haven.’
    According to the highly-respected Institute of International Finance (IIF), global debt levels reached an astronomical $217 trillion in the first quarter of 2017 – that’s 327 percent of world gross domestic product (GDP). Notice that before the financial crisis, global debt was ‘only’ around $150 trillion, meaning we’ve added close to $120 trillion in as little as a decade. Much of the leveraging occurred in emerging markets, specifically China, which is spending big on international infrastructure projects.

    This post was published at Gold Core on July 27, 2017.

  • Turkey gold imports still riding very high — Lawrie Williams

    By our reckoning, Turkey has imported some 174 tonnes of gold in the first half of the current year. This reflects a degree of political turmoil both before and after the April referendum, which gave President Erdogan sweeping additional powers, but also Erdogan’s advice late last year that citizens should buy gold or Turkish lira rather than dollars in converting foreign currency or as a hedge against future uncertainties. It looks as though his advice has been well heeded as far as gold is concerned.
    This year’s imports to date have already exceeded the 106 tonnes imported in full year 2016, which in turn was more than double the amount imported in 2015. Thus this year’s figures represent an enormous increase on prior years’ figures and probably puts Turkey currently in place as the world’s third largest net importer of gold, after China and India.
    With Chinese gold demand remaining reasonably strong and Indian demand hugely up in the first half of the year ahead of the new GST imposition, gold flows from the West to the Middle East and South and East Asia have been very strong in the first half of the year and have probably accounted for just about all of the world’s new mined gold, which puts physical metal in short supply in the west.

    This post was published at Sharps Pixley

  • Gold Seasonal Sweet Spot – August and September – Coming

    – Gold seasonal sweet spot – August and September – is coming
    – Gold’s performance by month from 1979 to 2016 – must see table
    – August sees average return of 1.4% and September of 2.5%
    – September is best month to own gold, followed by January, November & August
    Looking back at gold’s performance since 1979, August and September are big months for the yellow metal. What is the cause? No one really knows but there are some theories that have been thrown around.
    The adage ‘sell in May and go away’ is common in the mining sector. Investors are back from vacation and ready to deploy their cash in a big way. Concurrently, the largest financial crashes have occurred in September and October, investors are also buying gold to hedge their portfolios.
    Indian wedding season is huge for gold, and if you have ever been to a traditional Indian, its easy to see why India is the World’s largest consumer of gold jewelry. Throw Christmas into the mix, and you have the perfect retail storm.

    This post was published at Gold Core on July 25, 2017.

  • Chapter 43: Medicine

    Christian Economics: Teacher’s Edition
    And the Lord will take away from you all sickness, and none of the evil diseases of Egypt, which you knew, will he inflict on you, but he will lay them on all who hate you (Deuteronomy 7:15).
    AnalysisHealing is an aspect of covenantal ethics, according to the Bible. Health is a blessing of God; sickness is a curse. This is why the early church in the New Testament used healing as a way to demonstrate God’s new work of redemption, which was evidence of the church as God’s ecclesiastical representative in history, the replacement of Israel.
    Now Peter and John were going up to the temple at the hour of prayer, the ninth hour. And a man lame from birth was being carried, whom they laid daily at the gate of the temple that is called the Beautiful Gate to ask alms of those entering the temple. Seeing Peter and John about to go into the temple, he asked to receive alms. And Peter directed his gaze at him, as did John, and said, ‘Look at us.’ And he fixed his attention on them, expecting to receive something from them. But Peter said, ‘I have no silver and gold, but what I do have I give to you. In the name of Jesus Christ of Nazareth, rise up and walk!’ And he took him by the right hand and raised him up, and immediately his feet and ankles were made strong. And leaping up, he stood and began to walk, and entered the temple with them, walking and leaping and praising God (Acts 3:1 – 8).
    The ability to heal miraculously has always been regarded by the masses as evidence of a person’s special relation to God. This same attitude prevails today in an era of scientific medicine. Medical missionaries are granted access into nations that are otherwise closed to missionaries. Political leaders regard the benefits of healing as outweighing the negatives of evangelism. Jews understood this principle in the Middle Ages. They became physicians to gain acceptance in the gentile world. Moses Maimonides, the Rambam, was the most famous Jewish theologian and philosopher of the Middle Ages. He was also the senior physician of the sultan of Cairo in the late twelfth century. Christian hospitals in the later Middle Ages were ministries of churches and ecclesiastical orders. Then there is the remarkable account written by lvar Nez Cabeza de Vaca of his eight-year trek from Florida through Texas into Mexico, 1528 – 1536. He describes the strange fact that he and his companions gained the power of healing halfway through their journey. They were welcomed by Indian tribes from Texas country to Mexico because of this. Word spread in advance that they were coming, tribe by tribe. They would probably have been killed had they not possessed this power. Instead, they were supported with food and water.

    This post was published at Gary North on July 22, 2017.

  • India: The Lunatics Have Taken Over the Asylum

    Goods and Services Tax, and Gold (Part XV) Below is a scene from anti-GST protests by traders in the Indian city of Surat. On 1st July 2017, India changed the way it imposes indirect taxes. As a result, there has been massive chaos around the country. Many businesses are closed for they don’t know what taxes apply to them, or how to do the paperwork. Factories are shut, and businesses are protesting.

    Increases in administrative costs have made economics of trading and manufacturing unfavorable for many. Most lack access to accounting and IT skills to implement the new system – India simply does not have that many skilled people. As many as half of all transportation trucks are not operating. The media have ‘decided’ not to cover the demonstrations.
    The new indirect tax is a value-added tax, but as can be expected from the Indian government, it is chaotic, bureaucratic, extremely complicated, and full of loopholes. If you pay GST to your supplier but if he fails to deposit it, you cannot claim it as an input tax, making a businessman not only a collector of tax but an enforcer – this kind of draconian VAT system likely does not exist anywhere else.

    This post was published at Acting-Man on July 21, 2017.

  • Overnight Paper Attack On Gold – Why This One Was Different

    Once again there was an overnight ‘flash crash’ in Comex gold futures trading. This time it occurred at 3:56 a.m. EST at one of the quietest trading periods of the roughly 23 hour electronic trading day. India has gone sleep. The Shanghai Gold Exchange has been closed for about 90 minutes and the London markets are just beginning to function. I guess someone decided it was a good time to unload close $500 million worth of paper gold into the Comex’s Globex electronic trading system:

    This post was published at Investment Research Dynamics on July 19, 2017.

  • India’s Love Affair with Gold

    We focus on India a lot. Why? Because Indians have a love affair with gold. It’s not just a luxury. Even the poor buy gold in India.
    There are two main reasons to follow the Indian gold market closely. First, the country ranks second in the world in gold consumption. What happens in India can have a major impact on the world gold market. Second, the attitude of the Indian people can teach us a lot about the wisdom of buying and owning gold.
    After a lull in demand last year, Indians have already purchased more gold this year than they did through all of 2016. We saw their passion for gold on vivid display when Indians bought more 23 tons of gold in a single day during the Akshay Tritiya festival. But what drives it? Why do Indians seek gold?
    A recent article at MoneyControl.com sheds some light on Indian attitudes about the yellow metal.

    This post was published at Schiffgold on JULY 18, 2017.

  • Asian Metals Market Update: July-17-2017

    It was quite a week last week. For the bears of gold and silver, it was the distance between the slip and the lip. Trump’s Russia connections and a hawkish Federal Reserve came to the rescue of gold and silver bulls. Low inflation will reduce the pace of interest rate hikes. Interest rates in the USA will rise at a faster pace if and only if the Federal Reserve ignores inflation and focusses on other macro factors of the US economy. Global central banks and not just the Federal Reserve do not have room to reduce liquidity by much. If they increase interest rates at a quicker pace till next year, then a lot of so called ‘too large to fail’ banks could be get. There are also certain sectors in every nation which are nearing bubble zone and could get busted due to quicker interest rate hikes. Gold and silver will zoom once traders perceive that interest rate hikes have formed a medium term top.
    China is on a land encroachment spree with most of its neighbors. Other than its northern borders with Russia China is unofficially increasing its land boundaries. Some nations have succumbed to China while others like India under an able political leadership are now trying to counter China. War/skirmishes with China are imminent as far as India is concerned. Chinese land encroachment policy will result in increase in the pace of rise in physical gold demand from Asia. Chinese government policies ensure that gold buying reaches to each and every strata of its people. (Unlike Indian government which is trying to take all steps to dissuade Indians to buy gold).
    The effects of the Islamization of Europe are being felt in a big way. In my view the UK more or less has a state support to Islamic terrorists. All global terror organizations openly raise funding in the UK. The Scotland Yard knows the terrorists and supports the global Islamic terrorists as long as they are able to use them. So called British exit from the EU will be more peaceful for the Eurozone as UK terror imports will reduce. Europe’s daily rise in terror threats will ensure that gold and other safe havens demand will be on the boil over the coming years.

    This post was published at GoldSeek on 16 July 2017.

  • Market Report: Unchanged on the week

    Gold and silver prices steadied this week, with gold up only $3 at $1218 in early European trade this morning (Friday), and silver unchanged at $15.68. As our headline chart shows, silver is now marginally lower on the year, and gold’s rise has been pared to 5.75%. All this has happened against a background of a weaker dollar, so in terms of performance, gold’s rise against the dollar is as good as it gets. Our next chart shows gold’s performance indexed to the start of the year against the four major currencies.
    Priced in euros, gold is now down on the year, by 2%. The point is worth making to refute those who buy and sell gold on charts alone: they are ignoring the value gold offers most of the world’s population priced in other currencies. For example, there has been a rebound in Indian demand, with the official figures for May rising to 124 tonnes for the month. Given the smuggling trade, this is bound to understate the true figure. Silver demand also jumped sharply. Chinese public demand for gold in June rose to 155.5 tonnes, which for the first six months now stands at 1,021 tonnes. China and India between them are absorbing gold at an annualised rate of 3,160 tonnes, not far off total global mine supply. For this demand to be satisfied, the rest of the world, including members of the public, central banks and other government institutions such as sovereign wealth funds must draw down on existing above-ground stocks to satisfy their demand. This tells us that serious supply problems must be developing in the physical market, which is confirmed by backwardations for future deliveries.

    This post was published at GoldMoney on July 14, 2017.

  • Doug Noland: Yellen on Inflation

    This is a syndicated repost courtesy of Credit Bubble Bulletin . To view original, click here. Reposted with permission.
    Global Markets rallied sharply this week. The DJIA rose 223 points to a record 21,638. The S&P500 gained 1.4% to a new all-time high. The Nasdaq100 (NDX) surged 3.2%, increasing 2017 gains to 20.0%. The Morgan Stanley High Tech Index rose 3.4% (up 24.6% y-t-d), and the Semiconductors surged 4.7% (up 21.8%).
    Emerging markets were notably strong. Equities rallied 5.0% in Brazil, 5.5% in Hong Kong, 5.1% in Turkey, 2.5% in Russia, 2.2% in Mexico and 2.1% in India. The Brazilian real gained 3.2%, the Mexican peso 3.0%, the South African rand 2.7% and the Turkish lira 2.3%. Global bond markets also rallied. Yields (local currency) dropped 27 bps in Brazil, 18 bps in South Africa, 16 bps in Turkey and 22 bps in Argentina. Here at home, five-year Treasury yields dropped eight bps (to 1.87%). U. S. corporate Credit also enjoyed solid gains. Across global markets, it appeared that short positions were under pressure.
    Markets reacted with elation to Janet Yellen’s Washington testimony – widely perceived as dovish. In particular, the chair’s timely comments on inflation were cheered throughout global securities markets. A headline from the Financial Times: ‘Fed Chair Yellen’s Inflation Concern Buoys Markets.’ And Friday afternoon from Bloomberg: ‘S&P 500 Hits Record as Inflation View Turns Iffy’.

    This post was published at Wall Street Examiner by Doug Noland ‘ July 15, 2017.

  • Asian Metals Market Update: July-13-2017

    Factors which can affect markets
    Gold and silver rose after the Federal Reserve chairman signaled a slower pace of interest rate hikes than expected. Yellen said that the Federal Reserve remains on track to both interest rate hikes and to begin shrinking its balance sheet before the end of next year. July and August US jobs numbers will be the key as cyclical factors due to the US summer season will come into play. At the end of the day the investment demand for gold (for the rest of the year) will be dependent on the pace of US interest rate hikes outlook. Geopolitics have failed to affect bullion. Indian demand of gold and silver will be very high this quarter only to fizzle out in the final quarter of the year.
    US retail sale numbers tomorrow will be key.

    This post was published at GoldSeek

  • GOLD & SILVER MARKET: Four Interesting Developments

    There are four interesting developments taking place in the gold and silver market that precious metals investors should be aware of. While Americans continue to place all the BETS in the CASINO called Wall Street, via stocks, bonds and real estate, the EAST has been acquiring record amounts of gold and silver. Furthermore, something interesting seems to have changed recently in the Silver Eagle sales market.
    FIRST DEVELOPMENT: Let’s start off with showing the stunning amount of silver India imported in May. According to Smaulgld.com, India imported nearly 2,000% more silver in May 2017 vs May 2016:
    Matter-a-fact, India imported nearly the same amount of silver in May, than they received from January-April. Also, we can see that May’s 1,473 metric tons of silver imports is 2-4 times more than any of the prior months. Something has inspired the Indians to import that much silver this past May.

    This post was published at SRSrocco Report on JULY 12, 2017.

  • India Gold Imports Surge To 5 Year High – 220 Tons In May Alone

    – India gold imports in H1, 2017 greater than all of 2016
    – India imported 521 tonnes of gold in first half of 2017
    – H1 figure for gold imports $22.2 Bln versus $23 Bln in all ’16
    – Gold demand was up 15% year- on-year in the first quarter
    – June gold imports climbed to an estimated 75 tonnes from 22.7 tonnes a year ago
    – Annual total set to surpass 900 tons, strongest year since ’12
    – ‘I trust gold more than the currencies of countries’ – 63% of Indians in Survey
    Gold imports into India have surged in the last six months thanks to festivals, economic recovery and concerns over a new tax regime and the push for the cashless society in India.
    Imports totalled 521 tonnes in the first half of this year, compared to just 510 tonnes in all of 2016.

    This post was published at Gold Core on July 12, 2017.

  • Indian Gold Imports Top 2016 Total as Gold Continues to Flow from West to East

    Indians bought more gold in the first half of 2017 than they did all of the previous year, as the yellow metal continues to flow from the West to the East.
    Indians within every economic class buy gold. Even the poor in India invest in the yellow metal. But demand for gold slumped to a seven-year low in 2016, leading some to wonder if Indians had lost their appetite for the metal.
    Apparently not.
    Demand for gold in India rebounded through the first half of the year. According to GFMS Thomson Reuters, India imported 521 tons of gold through H1 2017. The world’s second leading consumer of gold only imported 510 tons through all of 2016. According to Business Standard, analysts say India is on pace to hit its highest gold import value since 2012.
    Going by industry estimates, gold import are likely to cross 900 tons against the average imports of 709 tons in the past five years, and the imports bill is expected to cross $40 billion in 2017. If the estimates come true this would be the highest imports in value terms since 2012.’

    This post was published at Schiffgold on JULY 10, 2017.

  • The G20 Beyond the Public Agenda

    Since its beginning in 1999, the G20 had been a mere finance ministers’ meeting. But when the Panic of 2008 hit, President George W. Bush and President Nicolas Sarkozy of France were instrumental in changing the G20 to the leaders’ meeting it is today.
    The Panic of 2008 was one of the greatest financial catastrophes in history. In the aftermath of the Lehman Brothers collapse in September 2008, attention turned to a previously scheduled G20 meeting of finance ministers in November.
    At the time, the G7 was the leading forum for economic coordination, but China was not in the G7 and its help would be needed to bail out the global economy.
    Once China was included, the door was open to other large emerging markets economies, such as India and Brazil. The guest list was expanded and the G20 leaders’ summit was born.

    This post was published at Wall Street Examiner on July 8, 2017.

  • Former governor of Reserve Bank of India admits gold bothers central banks

    The government should take steps to curb black market transactions in gold, which have an adverse effect on the economy, according to Y.V. Reddy, a former governor of the Reserve Bank of India.
    “Some of the demand for gold today stems from black market transactions, which have a nefarious influence on the economic systems and social fabric and deserve immediate and serious attention,” Reddy said in an article titled “The Voice of Authority” written in Gold Investor, a publication of the World Gold Council:
    He said a number of measures needed to be taken to tackle black market transactions, adding that in the long term, if the financial sector expands and develops, the economy grows, and society evolves, the demand for gold arising from cultural factors, property rights, and general preferences should be resolved.
    “Gold has the characteristics of a currency, competing with the official currency as a form of savings or a store of value. It is a commodity by definition — but its links with the financial sector provoke central bank concerns,” he added.

    This post was published at India Times

  • Chinese gold demand up a little y-o-y…but still well down on 2015 — Lawrie Williams

    When we talk Asian demand and gold flows from West to East we are largely looking at China and India, so year-on-year statistics are hugely important when trying to assess the state of the global gold supply/demand balance. So far this year Indian gold demand has been substantially above that of a year ago, although perhaps could be a little anomalous because of purchases made ahead of the imposition of that country’s Goods and Services Tax (GST) which came in at 3% on gold as from July 1st.
    Chinese demand – as represented by withdrawals from the Shanghai Gold Exchange (SGE) – had appeared to have slipped back marginally in the five months to end May, but bigger withdrawals in June – just announced – have redressed the balance, and year to date withdrawals are now a little up on the figure for last year (by 1.2%) but still down around 16.5% on the record figure recorded in the first six months of 2015.
    As we’ve noted here before it is somewhat contentious whether SGE withdrawals are a true measure of Chinese gold demand – the major precious metals consultancies disagree. Yet they all seem to come up with different reasons to dispute this. But on our reckoning it’s a pretty good measure as the annual SGE withdrawals figure corresponds quite neatly with the sum of known Chinese gold imports, plus Chinese domestic gold production plus a contingency for scrap and imports from gold producing nations which do not publicise their gold export figures on a country by country basis. In other words, SGE withdrawals come in at close to known and estimated gold flows into China.

    This post was published at Sharps Pixley

  • A Golden Security Nightmare

    How’s this for a nightmare scenario?
    You’re driving a truck filled with tons of gold along a public highway and you blow a tire.
    This actually happened in India back in the early 1991, and it underscores the importance of security for your gold.
    India went through a severe foreign exchange crisis in the late 80s and early 90s. This eventually prompted the Indian government to pledge its gold reserves in order to avoid default on overseas payment obligations. The government eventually worked out a deal with the Bank of England that involved airlifting 47 tons of gold from the Reserve Bank of India to England. At the time, the gold was valued at $407 million.
    This brings us to our ill-fated truck filled with millions of dollars in gold. A story in the Economic Times explains what happened.

    This post was published at Schiffgold on JULY 5, 2017.

  • Not Just a Luxury; Even the Poor in India Buy Gold

    While you may think of gold as a luxury item, many Indians view it as a necessity. In the Asian nation, buying gold is not just for the rich. In fact, a recent survey shows that possessing the yellow metal is a universal phenomenon across all income classes in India.
    The yellow metal is interwoven into the country’s marriage ceremonies and cultural rites. Indians also value gold as a store of wealth, especially in poor rural regions. Two-thirds of India’s gold demand comes from these areas, where the vast majority of people live outside the official tax system. This explains why even the poor buy gold in India.
    According to the ICE 360 survey, one in every two households in India purchased gold within the last five years. Overall, 87% of households in the country own some amount of the yellow metal. Even households at the lowest income levels in India own some gold. According to the survey, more than 75% of families in the bottom 10% had managed to buy gold.
    If anything, these numbers likely understate gold ownership – especially among the poor. An official involved in the survey who did not want to be identified told LiveMint that survey respondents are often hesitant to admit to purchasing gold. This comes as no surprise considering gold is a major part of India’s vast underground economy.

    This post was published at Schiffgold on JULY 5, 2017.