Indian gold imports up in October
New figures have shown that Indian gold imports rose by 45.5 per cent in October compared with the same month last year.
According to state-owned trader MMTC, 48 tonnes of the precious metal was imported last month, in contrast with the 33 tonnes recorded in October 2008.
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Over the last eight (almost nine) years Gold has been rising against the major currencies. While for years Central Banks have been a primary source of supply to the markets, supply from mines continues to shrink, but now more and more Central banks seem to see the long term value of holding on to their national treasure rather than selling their dwindling supplies just to prop up fiat currencies in the short term. As a result Central banks are becoming net buyers. Even if that wasn’t so, the folks at the gold anti trust action committee, GATA, believe that the way the central bank gold accounting rules work, there is much less available physical gold in the vaults than on the ledger and that is because swaps and leases do not show up on the inventory report if I’m understanding GATA’s theory. So according to the reasoning, much of the central bank gold may have already been sold in a decades long gambit to supress gold prices and after years of supression there is a huge pent up potential price energy. Gold isn’t near its inflation adjusted high’s and silver is at about 1/10th of its inflation adjusted high’s. Following the work of the silver analyst Ted Butler, it seems that one or at most two Primary Dealer’s of the Federal Reserve hold the vast majority of short positions in silver on the COMEX. It is interesting when you look at who these shorts likely are and what role one of them plays in a major Silver ETF in my opinion.
The market Cap for all of Gold is less than that of Microsoft and all the gold ever mined has less value at current prices than about half the US GDP. All the Gold ever mined would fill approximately two Olympic size swimming pools and the Silver market is minuscule compared to Gold.
If the new mainstream investors in gold and silver ever get the big picture, they’ll shift from paper proxies of gold and starting taking physical delivery from COMEX of silver and gold, stop using margin, and move to a buy and hold long term strategy in my opinion. This is because the long term picture in gold and silver is a simple one of Supply and Demand. Supply is decreasing and demand is increasing.
Gold and silver have long been considered money and by many the world over they still are. For others they are a hedge against the growing distrust in fiat currencies increasingly encumbered by accelerating debt levels which will likely never realistically be repaid.