It appears that the Reserve Bank of India has broken Indian law by holding 265.49 tonnes of India’s gold reserves at the Bank of England.  This is approximately 46% of India’s total reserves of 557.75 tonnes.

So apparently all that publicity India received several years ago when it added 200 tonnes to its gold reserves was actually the cartel adding to their gold reserves at the Bank of England, with a few ‘India’ post it notes for reference.
If you don’t hold it, you don’t own it!

According to Raghunath Kelkar, the Reserve Bank of India is bound to keep excess gold in its reserves, not deposit outside the country; despite summons, RBI rep fails to appear in court.

Atechnocrat-turned-public interest litigant Raghunath Shankar Kelkar has challenged the Reserve Bank of India’s (RBI) move to deposit 265.49 tonnes of gold out of its total stock of 557.75 tonnes abroad by filing a public interest litigation (PIL) in the Bombay High Court and demanded that the precious metal be brought back into the country, according to the provisions of the law.

Kelkar (56), who used to manufacture computers, has filed the petition as he found the move by the apex bank in contradiction to the section 33(5) of Reserve Bank of India (RBI) Act, 1934, which stipulates that 85 per cent of its gold reserves should be kept in India.

Kelkar read the 17th half yearly report of RBI on management of foreign exchange reserves, in which the apex bank has said, “The Reserve Bank held 557.75 tonnes of gold, forming about 9.2 per cent of the total foreign exchange reserves. Of these 265.49 tonnes are held abroad in deposits or safe custody with the Bank of England and the Bank for International Settlements.”

He said that the RBI move was in violation of the legal provision as it had put 46 per cent of its gold reserves out of the country. The reason issued for the action is that of safe custody. “Does the RBI mean that gold is unsafe in India? Does the RBI think that Indian security forces are incapable of guarding the gold treasure of the country?” he asked.
Read more:

    926,657 oz. OUT OF HSBC
    621,086 INTO HSBC
    100,151 OUT OF BRINKS
    586,366 INTO SCOTIA
    70,242 OUT OF SCOTIA
    Registered now at 35726274 oz.
    TOTAL at 140,581,983 oz.+ only 110401 AFTER ALL THAT SHUFFLING!
    Net shorts over registered inventory = 250% down from 328%
    They’re still covering shorts–lower silver prices ahead.
    Net Shorts over Total Inventory = ONLY 63.66% (one of the lowest reading ever!)—Still points to lower silver prices ahead until they start adding to their net short position.

  2. Next Week’s COT needs to show increased (NET SHORTS-NET LONGS) X 5000 oz./REGISTERED INVENTORY in order to show a higher low. The current 250% needs to stop dropping and move back up with increased short positions by the commercials before silver prices can bottom.

    The current value, (250%), is very close to breaking below the most recent low (202% of registered silver) that was printed on 12-30-2011. If this happens, (maybe next week), we’ll probably see silver drop below the most recent support level near $26 IMO.

    The same scenario is happening on the COT report against the Total Inventory.
    Where the current percentage is 63.66% that needs to show a higher low above the most recent low made also on 12-30-2011 at 59.93% 

  3. Right on Jake. In a way, this will be good. If it falls below $26.00, I’ll have to call the DOC again. Someway, somehow I’ll come up with some fiat. We’ll see. Great post and thanks.

  4. I wanted to clarify my last two posts.

    Although we have not yet seen a bottoming of commercial short covering as it relates to my inventory percentage analysis, I can say that if the commercials have stopped covering as of this latest COT report, we could be very close to one of those “Spike-Lows” that washes out that last of the recent longs.

    That would probably do it. If we see a quick spike to, say, $25.50 along with a strong recovery back to the 28’s, I think the low for the year would be in place. Of course, we still would need to see the next COT report showing increased shorts, but I think there is good potential here for a bottom appearing somewhere between $25.50 and $26.50 on silver. Call it 26.

  5. This is interesting Jake. If we haven’t seen the bottom, I expect there will be some serious buying  abroad. Central banks have mostly stacked gold, but, knowing what is going to happen in the near future, the banks may start to load up on silver also. Hope so. Wait and watch. Thanks again.

  6. a prediction

    we will see

    Central banks


    I believe they Have or will start this action


    they cant afford not to

    they are between the rock & the hard place

    folks keep buying & stacking

    & break the morgue & the FED

    silver is money TOOOOOOO


    i gots to axe dis question ( warning ebonics question)

    whoooooooooooo  is going to jail

    in INDIA


    I thought so

    no one…………..LMAO

    screw the little people when ever you can

  8. If the legal aspects of this gold deposit are forced to conclusion and India demands return of its 256 tons the fat will be in the fire. 

     1.   The gold may not be there, period.   2.  Itwas leased out to China, good luck there   3.  It was salted with tunsten   4.  JPM stole or will end up stealing it     5.  BOE sez FO “We get the gold, you got India.

    End result.  India has a larger navy and nukes.  They are far more bellicose than England. Old Blighty has gone all candy ass and GLBT.  They couldn’t fight their way out of a paper bag.  India would do some serious whoop ass on their former colonial masters. In any way, it will get ugly   IMO.

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