Posted on 11/17/2008 6:24:35 AM PST by TigerLikesRooster
Thanks to Europe, gold prices may go up in India
IANS
ALL THAT GLITTERS: India imports nearly 500 tonnes of gold every year.
Panaji: The rising demand for gold in Europe may soon lead to a temporary shortage of the yellow metal in India, sparking a sudden rise in gold prices, a leading bullion importing agency official has said.
"Today Europe is not able to supply gold to India, because European investors have started heavily investing in gold," Minerals and Metals Trading Corp (MMTC) chief general manager Asheesh Majumdar said.
Majumdar, who heads MMTC's precious metals division, was in Goa to announce the second edition of the agency's gold exhibition The four-day event last year witnessed daily sales of almost Rs 1 crore.
Despite the global meltdown, gold sales in India went up nearly 15 per cent this year. "People have learnt that instead of investing in the stock market, which has been volatile, gold offers them steady and assured returns," Majumdar said.
Meanwhile, Gitanjali Gems Ltd, co-hosts of the gold jewellery exhibition, announced that it would tie up with MMTC to set up jewellery shops across the country.
"We have already signed a memorandum of understanding with MMTC and we are working on the finer details," Gitanjali chief executive Shekhar Wadke said.
Gitanjali accounts for four percent of the branded jewellery market share in India.
MMTC, which clocked a Rs 350 billion turnover last fiscal also handles other precious minerals, ore, metals, fertiliser, coal hydro carbon and agro commodities.
India imports nearly 500 tonnes of gold every year.
Ping!
BTY, the only way out of a deflationary cycle (Which we're in) is to inflate, right
Buy stuff now.
Banks are shaky. So are governments. You put your money into one of these institutions and you may not get your money back.
And then there is a specter of high inflation.
Do you have a point or are you just being helpful?
This is the third "Gold Shortage" story I've read this morning from TigerLikesRooster, so there is a backstory out there trying to hype gold.
Thus far, the markets aren't spiking up yet in response to these stories. Here's another Yahoo! chart showing the CBOE index, which doesn't directly translate into a price per ounce of gold, but shows the pricing trends by the trend of the index. It's going down as well. As to a point, it depends on what YOU think. Great buying opportunity, or continued unwinding of commodity prices.
(Hopefully, this chart will update with a page refresh.)
I could give you a prediction but I wouldn’t advise you to act on it.
And the CBOE chart does refresh and is showing an upward spike as I write this.
High prices, also, in the Gulf states, where there is a lot of nervousness about the banks and inflated property values.
In fact, there is absurd talk about “over charging” for gold in Bahrain and Dubai, as people cannot get it for anything like the declared international market price of bullion. But the merchants are entitled to set their prices, as long as they have buyers.
It’s another gold bubble. For that matter, it’s another commodity bubble. It’s understandable in some ways, given the financial “crisis” which has gripped the imagination (perhaps that’s all it’s gripped) since, what, August? September?
Governments Can’t Handle Global Run On Gold Coins
New York Post | November 18, 2008 | John Crudele
Posted on 11/18/2008 5:05:32 PM PST by LegendHasIt
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