Precious Metals

India’s Gold Mania

"Less than 1% of the world’s gold is mined in India. The rest comes from somewhere else. Still, India can’t get enough. It is the largest consumer of gold in the world, buying nearly a third of production in recent years. Some estimates say that 10% of all gold is held in India. Indians save roughly 30% of their income, as opposed Americans, who save 5%. Plus, Indians are getting richer all the time. Once a very poor country, the rich and middle classes now outnumber the poor in this nation of 1.2 billion. The country has the sixth-largest economy in the world." Continue reading →

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Indian man buys $230,000 solid gold shirt as investment

"More than two dozen goldsmiths toiled for 15 days for lender Datta Phuge, who custom ordered the seven-pound top to wear for New Year's festivities, according to the Pune Mirror. The shirt is crafted from 14,000 22-karat gold rings linked together and comes with six Swarovski crystal buttons and a belt also made of gold. Phuge said he considers the shirt 'an investment which will keep appreciating.'" Continue reading →

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Turkish gold exports rise 800 pct on demand from Iran

"Turkey is Iran's biggest natural gas customer but Western sanctions prevent it from paying Tehran in dollars or euros. Iran is instead paid in Turkish lira - of limited value on international markets but ideal for buying gold in Turkey. Couriers carrying millions of dollars worth of gold bullion in their luggage have been flying from Istanbul to Dubai, where the gold is shipped to Iran, industry sources with knowledge of the business told Reuters last year. New sanctions are due to take effect in February and could include measures to try to curb the trade." Continue reading →

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Gold Lures Japan’s Pension Funds as Abe Targets Inflation

"Japanese pension funds, the world’s second-largest pool of retirement assets after the U.S., will more than double their gold holdings in the next two years as the new government pushes for a higher inflation target, according to an adviser to the funds. New Prime Minister Shinzo Abe’s pledge to spur inflation to 2 percent and end the yen’s appreciation means Japanese pension funds now have to hedge against rising prices and a currency decline after two decades of stagnation. Gold priced in yen reached a record a week ago." Continue reading →

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Illinois Bill to Register Buyers of Gold and Silver Coins

"It had to come. It has been introduced in Illinois, the most anti-gun state in the USA. 'Creates the Precious Metal Purchasing Act. Provides that a person who is in the business of purchasing precious metal shall obtain a proof of ownership, create a record of the sale, and verify the identity of the seller. Provides that a person who is in the business of purchasing precious metal shall not pay for the precious metal in cash and shall >record the method of payment. Requires the purchaser to keep a record of the sale for one year or, if the purchase amount is over $500, for 5 years.'" Continue reading →

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Barter and Alternative Currencies Growing in Greece

"The issue of tax reporting is brought into the article – and an insinuation is made that people are dodging taxes by using these systems. But so far as we can tell, such systems need central bookkeeping, which is one reason why we figure the United Nations has been a supporter of them. Gold and silver are far harder to track for personal usage than barter/currency systems that use a centralized bookkeeping system. Are Greeks turning to gold and silver as well, as those in Zimbabwe have done once the economy collapsed? We would bet gold and silver are finding their place alongside such barter/currency systems." Continue reading →

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U.S. Inflation Since 1775 And How It Took Off In 1933

"Yesterday at the American Economic Association's 2013 Annual Meeting, Carmen Reinhart and Ken Rogoff offered a paper titled Shifting Mandates: The Federal Reserve’s First Centennial. The paper included a cool chart of inflation since 1775. The authors argue that inflation didn't take off until the U.S. went off the gold standard in 1933." Continue reading →

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Iraq unearths 1,400-year-old gold coins

"Iraqi archaeologists have found 66 gold coins that are at least 1,400 years old, officials said on Monday, adding that they hope to put them on display in Baghdad’s National Museum. Many of Iraq’s archaeological sites have been vandalised and encroached upon in recent decades, but especially in the years following the US-led invasion of 2003. The capital’s National Museum was also looted in its aftermath. At the time, nearly 32,000 pieces were stolen from 12,000 archaeological sites across Iraq, and 15,000 others disappeared from the National Museum in Baghdad, according to official figures." Continue reading →

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Don’t Show Bernanke This Chart Of Gold Loans In India

"The chart shows the staggering eightfold increase in India's gold loans 'which monetize the idle gold in the country', in just four short years. In short it proves that in India, gold is the only real money, and is the only fallback option in a country where inflation is still rampant, and where even simple peasants prefer to keep their wealth not in the local paper currency, which has been losing its value aggressively in recent years, but in the shiny metal. Must be 'tradition.'" Continue reading →

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India’s finance minister says current account deficit worrying, eyes gold curbs

"India's record current account deficit is 'worrying,' Finance Minister P. Chidambaram said on Wednesday, and hinted at cutting gold imports to bolster weak external accounts that have brought back memories of a 1991 currency crisis. He said he was considering reining in imports of gold, used as an investment tool by Indians but which mean a drain on foreign currency reserves. 'We may be left with no choice but to make it a little more expensive to import gold,' Chidambaram said. Recently, Reserve Bank of India executive Director Deepak Mohanty urged investors to shift from physical gold as a hedge against rising prices to financial products like inflation-linked bonds." Continue reading →

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