Tag Archives: India gold imports

Indian Gold Imports In February Tripled

Mehul Choksi, chairman of jewellery store chain Gitanjali Gems Ltd., is quoted as saying: “We expect some heavy buying in April as a large number of weddings are expected to take place. – LINK

Legal Indian gold imports jumped up to 96.4 tonnes in February vs. February 2016. These numbers come from the finance ministry and not the World Gold Council or bullion banks. This reinforces the observations by many that the BIS-directed attempt to curtail Indian gold demand by removing cash from the financial system has failed.  Gresham’s Law in action.   This number also does not include smuggled gold which, based on the increase in airport arrests so far in 2017, has ramped up considerably.

Amusingly, Cititgroup is forecasting total 2017 demand in India to be 725 tonnes.  This number is laughable.  Smuggling alone is thought to account for about 300 tonnes per year of gold going in to India.  As a bullion bank with an untenable paper gold short position, Citigroup can only dream that India’s gold importation will be that low in 2017.

There will be a big “snap-back” effect on India’s gold demand after the brief intervention by the Government in late 2016.  Based on yesterday’s response in the paper gold market in NYC after the Fed’s rate hike announcement, it seems that the western Central Banks/bullion banks are losing control of the bullion market.

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You can check out the Mining Stock Journal by clicking here:    MSJ LINK

Orwell’s Nightmare In Real-Time

“They” know they are losing control.  “THEY” are the elitists who stand silently – some invisibly – behind Capitol Hill and run the country.  “They” includes the Deep State, CEO’s and directors of the largest corporations and the country’s wealthiest families and individuals.  If you would like to see names of some of the latter, read this:  Meet Wealthy Political Donors.

But that list is far from complete.  Missing are people/families/foundations like Warren Buffet, Bill Gates, Phil Anschutz and the Walton family.

Also see, Rogue’s Gallery – Exposing the Group of 30, to better understand who writes the monetary policies and be introduced to another branch of “They”. These are real people, not made-for-TeeVee characters, but actually people that dictate our lives.

The United States’ system of Government has become a pure “Money-ocracy.”  If you have enough money in your bank (and you might own the bank) and are willing to write the checks to the proper depositories (like the Clinton Foundation and the DNC, for instance) then you are part of the Money-ocracy.  If you are not part of the Money-ocracy, you are a middle class yeoman and soon a serf (per Warren Buffet).

In today’s Shadow of Truth (aka the RUCK Report – Rainbows, Unicorns and Cute Kittens), we discuss the transformation of the United States into the largest Banana Republic in history:

India’s Hidden Demand For Gold

Western anti-gold propagandists have been scratching their head over the surprising strength in the gold market despite aggressive Central Bank efforts to push the price lower. Here’s a perfect example of the idiotic articles hitting the internet – this one from Investing.com:  Bring Out The Bears:  Gold Is Headed Lower.  This author refers to gold as “the shiny rock.”

Anyone who’s traded gold for a reasonable length of time knows that simple T/A applications are utterly useless.  This author’s work is T/A scatology.  I see he operates something called “Dragonfly Capital.” Dear god I hope he’s not responsible for managing other people’s money…

The recent strength in gold is widely being attributed to vigorous “western” demand. Other than the fictitious run-up in GLD’s reported vault holdings, and the record Q1 2016 quarterly demand for U.S. minted gold eagles, it’s hard to see whether or not the west is buying up a lot of physical gold or not.

However it’s been assumed that since early March that India was dormant for several reasons, not the least of which is a general jeweler’s strike over the excise tax implemented on jewelry sales.  However these jewelers still have to make a living.

John Brimelow – JB’s Gold Jottings report – featured an article from India which reports that “unofficial” imports of gold into India – aka “smuggled gold” – are estimated to be around 2.5 tonnes per week.  Based on the numerous other reports published by JBGT, estimates of smuggled gold into India tend to understate the true amount of smuggling.  One of the the benefits to jewelers to using smuggled metal is that they avoid paying import duties and the associated premiums over the spot price, and thereby offset the excise tax.

With the dramatic run-up in paper derivative forms of gold relative to the amount of physical gold available to deliver into those paper claims, it would be a grave mistake for the bullion banks to underestimate the amount of physical gold disappearing into private hands.

Gold, Silver And Mining Stocks: The Bull Market Has Resumed

Perhaps the most intriguing aspect of the latest move up in the price of gold is that it has occurred with India’s imports shut down since March 1.   Gold imports had fallen off during February as the industry was anticipating that the Government would cut the 10% import duty on refined gold bars.  Instead, the Government announced an excises duty on non-silver jewelry.  The jewelers industry went on strike, which effectively shut down the gold market in India since March 1.

This past weekend the finance minister of India assured the jewelers that the Government would not harass the jewelry industry for collection of the tax.  As a result, the jewelers ended the strike.  The jewelry industry contributes close to 4% of India’s GDP.

The end of the strike also means that the India’s gold imports will resume and will likely include a big “snap-back” spike in demand, which should be a catalyst to more than offset the current intervention attempts by the Fed and the western bullion banks.

The mining stocks are up 78% since January 19, when the HUI index briefly traded below 100.   This may seem like an unsustainable move.  However, in 2008 the HUI doubled between late October and December 31, on its way from 150 to 636 by mid-September 2011.

Jason Burak of Wall Street for Mainstreet hosted me to discuss the deterioration of the U.S. and global economy and the financial markets.  We discuss why the junior mining stocks currently represent an opportunity to make lifestyle-changing money by investing in them now:

If you are looking for good mining stock ideas, try out my new Mining Stock Journal. It’s a bi-monthly newsletter which will provides exclusive market commentary and analysis plus in-depth NewSSJ Graphicresearch on a junior mining stock idea. The current issue presents a Canadian gold exploration junior that is largely undiscovered yet has a “de-risked,” advanced-stage gold mine development. This stock has huge upside potential. You subscribe from this link – MINING STOCK JOURNAL –  or by clicking on the image to the right.

The idea presented in the first issue is an emerging larger-cap gold/silver producer that is up nearly 20% since March 4.