Wednesday, 15 October 2014

Gold Imports by India Seen Rising More Than Fourfold Last Month.


  Bloomberg reports that demand for Gold in India has surged up to 95t in September and there are some estimates that it could be as high as 115t. Today during the morning Ebola panic DOW has crashed 370 points and Gold has surged to $1250. Nobody knows the future, but one observation is almost for sure: the risk calculation is totally distorted by the ZIRP FED actions and any external event out of FED's control, like Ebola scare (which is very unfortunate), can bring the very fast repricing of assets' prices. The cure will be all the same - QE4 buzz is more and more aloud now.
  With India back into the Gold market and China buying almost all produced Gold out of China, Switzerland referendum is the real wild card, which could ignite the run on physical gold deliveries.

Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.

"On November 30th, the 8 million citizens of Switzerland will vote either YES or NO in an opportunity to determine the fate of their own financial system. On the ballot will be three matters which would effectively make Switzerland the first country in the world with an official partial gold-backing of their currency. Citizens will vote on: 
1) Returning their national gold which is held abroad back to Switzerland 
2) Requiring the Swiss National Bank to hold 20% of their assets in physical gold 
3) Prohibiting further gold sales 

What will a “YES” vote mean for Switzerland and gold? Watch the videos."


Gold Imports by India Seen Rising More Than Fourfold Last Month.

"Gold imports by India, the largest user after China, probably surged more than fourfold last month on expectations declining prices would boost festival demand.
Purchases are estimated at about 95 metric tons compared with 15 tons to 20 tons in September last year, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation. The government raised import taxes for a third time in August last year after a month earlier obliging importers to set aside 20 percent of purchases for re-export as jewelry.
India represented 25 percent of global demand in 2013. Imports of gold were valued at $3.75 billion in September, 450 percent more than a year earlier, the Commerce Ministry estimates. Buying and gifting of gold is considered auspicious and the most favorable time is the festival of Dhanteras, two days before Diwali which occurs on Oct. 23. Festivals run through November and the wedding season follows to early May.
“These are normal imports before Diwali,” Bamalwa said in a phone interview from Kolkata today. “There is no abnormal feature. Prices have fallen in the international market and this is good for Indian consumers.” Bloomberg."