Sell gold | India's Central Bank To <b>Sell Gold</b> On The Market In Exchange For <b>...</b> |
- India's Central Bank To <b>Sell Gold</b> On The Market In Exchange For <b>...</b>
- Barrick <b>Gold Selling</b> Golden Sunlight Mine in Montana | <b>Gold</b> <b>...</b>
- Daily Business Report: India's Central Bank To <b>Sell Gold</b> On The <b>...</b>
| India's Central Bank To <b>Sell Gold</b> On The Market In Exchange For <b>...</b> Posted: 03 Jul 2014 02:14 PM PDT Submitted by Mike Krieger of Liberty Blitzkrieg blog, India's gold policy over the last several years is about as dysfunctional as any government policy I have ever seen, and that's saying a lot. In case you need a reminder, here are a few posts I have written on the subject: Gold Smuggling Increases 7x in India and Surpasses Illegal Drug Trade Indian Temples Fight Back Against Government Gold Grabbing Plot In a nutshell, Indians were buying too much gold for their government's comfort, so the "authorities" stepped in with duties and import restrictions in an attempt to stifle the trade. So smuggling soared. Fast forward to today. It appears the government has finally realized they can't stop their citizens penchant for gold, so they have decided to dump central bank gold onto the market. What is incredible to me is that they are justifying this with a so-called "swap" into phantom gold at the Bank of England. The favored global hub of shady, rent-seeking, banker oligarchs. What's even more interesting about this is the fact that so many Central Banks seems to be swapping or selling their gold to Western interests. Most notably Ecuador selling to Goldman Sachs, which I highlighted in the piece: Ecuador to Transfer More Than Half its Gold Reserves to Goldman Sachs in Exchange for "Liquidity." Now from Reuters:
This begs the question of who really needs the gold, the RBI, or London bankers?
At least the people will get a hold of it as opposed to criminal Central Bankers.
You have to wonder if this in any way relates to concern about the upcoming Swiss referendum on the country's gold reserves, which Parliament has been fighting hard to prevent from happening. For example, back in May Bloomberg reported that:
Well it appears based on a Bloomberg headline from this morning that a date has been set. A friend sent me the following:
There may be some very concerned bankers in New York and London this weekend. Full article here. (12 votes)  |
| Barrick <b>Gold Selling</b> Golden Sunlight Mine in Montana | <b>Gold</b> <b>...</b> Posted: 03 Jul 2014 10:45 AM PDT The Wall Street Journal reported that gold giant, Barrick Gold, is continuing with its two-year long endeavor to shed non-core assets with the sale of the Golden Sunlight mine in Montana after more than thirty years of operation. According to the Wall Street Journal:
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| Daily Business Report: India's Central Bank To <b>Sell Gold</b> On The <b>...</b> Posted: 04 Jul 2014 02:53 AM PDT India's central bank said on Wednesday it has sought quotes from banks to swap gold in its own vaults for international-standard gold, aiming to improve the management of its reserves. The Reserve Bank of India said the operation would "standardise the gold available with RBI in India with respect to international standards" and the gold acquired would be delivered to its overseas custodian, the Bank of England. By holding gold reserves in London, the RBI would gain flexibility to mobilise them if needed to defend the currency. It shipped some of its gold holdings to Britain in 1991 as part of a series of emergency measures to tackle a financial crisis. Under the leadership of Governor Raghuram Rajan, appointed last year, the RBI has sought to modernise its market operations and improve the management of gold and foreign currency reserves that are worth a total of around $315 billion. According to the World Gold Council, India holds the 11th-largest gold reserves of 557 tonnes. At current market prices, they would be worth nearly $24 billion. It was not immediately clear how much of that would be swapped. "RBI, in consultation with the government, would decide further in regard to quantity, swap-ratio, timing etc. of the gold to be swapped," the RBI said in an emailed response to questions from Reuters. The Economic Times reported earlier that the RBI had sounded out bankers on a plan to swap some of the old, relatively impure, gold that has been lying in its own vaults since before independence in 1947. MORE SUPPLIES Market participants said the central bank was likely to offload its old gold onto the local market in India. That would have the beneficial effect of boosting domestic gold supply without hitting India's current account - which faces renewed pressure as the conflict in Iraq has pushed up India's oil import bill. The current account deficit had touched a record high of 4.8 percent of gross domestic product in 2012/13. "It's a good move by the RBI, this will at least ease the stock requirement of the jewellery industry," said a senior official with a foreign bank that supplies gold to India. "Once the stock gets into the market, premiums will come down, and smuggling would be less profitable," said the source, who declined to be identified as he was not authorised to speak to media. Premiums may fall to $5-10 an ounce on London prices, from the current $25, when new supplies come to the market, said Kumar Jain, vice-chairman of Mumbai Jewellers Association. The central bank imposed the import restrictions last year in a successful bid to contain a balance of payments crisis, but the unintended result has been a large increase in gold smuggling into India, the world's second largest consumer of the precious metal after China. Part of India's consumption was met through illicit imports. The WGC reckons that 200-250 tonnes of gold have been smuggled into India since the imposition of import controls. Only 2.5 tonnes of smuggled gold - or 1 percent of the estimated total - have been seized by law enforcement agencies. The move comes just over a week before Finance Minister Arun Jaitley unveils his first budget, in which he faces a challenge to curb state borrowing after a two-year slowdown in growth. Jaitley is also battling inflation amid a food price scare and delays to the planting of summer crops resulting from a weak monsoon. At times of high inflation, many Indian households take refuge in gold to protect the value of their savings. |
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