Apparently Indians are fully aware that unlike what Bloomberg may wish you to believe to the contrary, fiat debt notes are NOT the best vehicle to preserve wealth.   Indian households have reportedly stashed 3x the stockpile of physical gold as the OFFICIAL US gold reserve!

New Delhi: Indian households have piled up as much as 20,000 tonnes of gold, worth $1.16 trillion, an historic high. This shows that the government’s efforts to trim overseas purchases of the idle asset by imposing an import duty and raising it in short intervals to reduce the current account deficit (CAD) haven’t yielded the desired results.

The World Gold Council’s (WGC) latest estimate of India’s household gold reserves is 11% higher than the 18,000 tonnes it had been pegged at earlier. Coupled with 557.7 tonnes of the central bank’s holdings, gold stocks at known sources in the world’s largest consumer would represent more than 75% of its gross domestic product. Gold prices in Mumbai stood at R32,325 per 10 gm on Wednesday.

Periodic surveys by private firms and independent researchers had, from time to time, pegged India’s household reserves in the range of 18,000 to 24,000 tonnes, but the WGC, the miners’ body whose estimates are widely tracked, has never put Indian household reserves at such a high level.

Anecdotal evidence would point at a significantly higher volume as the estimates don’t factor in unaccounted reserves held by religious institutions and trusts.
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  1. The fact that the Indian Central Bank is freaking out over the amount of real money held by the people, the fact that the Indian balance of payments problems is largely as a result of Indians buying gold, the new law that forbids lenders to finance gold purchases and the fact that the Indian government wants Indians to turn in their physical gold for paper gold, all under the ruse of holding the gold in the central vaults tells me that owning and holding gold is just about the best form of wealth preservation there is.   1,300,000,000 Indians can be wrong.

    • Why would Indians want to hold paper gold instead of physical gold. One of their god has a pot full of PHYSICAL gold coins and not paper gold or paper currencies. Plus, there’s one of their special events in which they must wear physical gold.

  2. For some excellent news on Silver, please see GATA’s latest story “LBMA Smoke Signals Smell Fishy”, referring to a 1-page article written just recently by Ned Naylor-Leyland.
    “Silver is… going into hiding and being taken off the market.  The Silver is, of course, still there, but people’s intentions to put this on the market are retreating rapidly. This is the definition of a silver shortage–nothing to do with the physical amount of the substance being in deficit, but people’s psychological intention not to sell.  The extent to which a shortage is developing is witnessed by the extent of backwardation.”
    Like GATA’s Bill Murphy, Ned Naylor-Leyland is anticipating imminent major development in the Silver market.

    For more in-depth learning about the historically recent de-monetization of Silver and the reasons behind it, find and read “THE SILVER SAGA” by Professor Antal Fekete.

    “What says the silver with her virgin hue?
    Who chooseth me shall get as much as he deserves.”
    –Shakespeare, The Merchant of Venice

  3. C&P from FB side …

    The Indo-Chinese civilizations so far pre-date others in their sophistication and depth of experience that it’s natural for them to have a better intuitive responsiveness to this unfolding calamity. Those of us in the West with a half ounce of brains ought to be emulating their path. They know damned well that this cycle of idiotic monetary experimentation can only revert back to Hard Money … Honest Money. Paper Rots, Coin Does Not.

    Additionally, the RATIONAL worth of those 20 thousand tonnes of gold is INCONCEIVABLE while viewed through the kalidascope of banknotes. Reluctance to mentally abandon that outlook can only make the ultimate shock of reality all the more stunning.

    • Both Chinese and Indian cultures are venerable with very long histories and much experience.  Ignoring their knowledge, wisdom, and experience is what a foolish child would do.  We can and should do as they do and convert our wealth into something of real value, rather than galloping at full speed towards collapse with absolutely no plan “B” for the inevitable SHTF collapse whatever.  It is clear to all of us here that the fiat paper experiment has been run and that it has failed.  The patient is on full life support via central bank interference in what should have been a timely natural death.  It is, indeed, time to pull the plug and silence that irritating mechanical beeping noise from the monitors.

  4. Gotta be careful of how we use our language because that’s the main weapon of propaganda. “Hoarding” is a propaganda term to replace “savings”. Look around the msm language and you’ll see that none of them use the word “savings” anymore but instead we “hoard” our money. It’s a loaded word meant to be derisive of people who are actually saving money because people who dont waste their hard earned money are the “bad guys” in this infinite consumption economy.

    • Agreed, JohnHenry.  Language is meaningful and we should choose our words with care – our enemies certainly do.  

      Yes, hoarding is a word that is applied by those who do not prepare for disaster to those who do.  Whether that is hoarding food, water, medicine, or precious metals, those who collect it are not joined by those who do not UNTIL it is a recognized necessity but can’t be obtained any more.  That is when those who did not prepare try to use the coercion power of government to grab some for themselves.  I guess that it is just too much trouble for them to get it for themselves BEFORE the SHTF.  :-/

    • I don’t see what’s wrong about “hoarding” as long as its for our own good and as long it doesn’t affect the others. It is our choice to hoard whatever we want.

  5. thats about a thousand dollars for every man woman and child in india …. or the equivalent of a kilo of silver ….. i wonder what the comparison is for US, UK, Can and Australia …. remembering average yearly salary is probably less than $10 k in india ….

  6. It’s normal that the Indian peoples are stacking a lot of physical gold because it is part of their cultures and religion. One of their god has a pot full of gold coins and not paper currencies! The pot full of gold coins symbolizes wealth.

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