India Gold Imports To Rise 5% To Over 900 Tonnes In 2013

Despite much negative comment after the recent sharp decline in gold imports into India, India is set to see higher gold imports in 2013 than in 2012.
India’s gold imports are set to fall in the second half as the government curbs shipments in a misguided attempt to prevent a further devaluation of the rupee,  however, if current trends continue, India is set to see full year imports rise from 860 tons in 2012 to 902 tons in 2013 or a gain of nearly 5%. 
Gold remains in backwardation signifying a very tight physical market and premiums in China remain high at nearly $30 per ounce with gold trading at $1,308.27/oz on the Shanghai Gold Exchange (SGE) this morning.

Silver Buffs Generic Add2

From Goldcore:


Today’s AM fix was USD 1,279.75, EUR 975.79 and GBP 842.00 per ounce.
Yesterday’s AM fix was USD 1,284.25, EUR 977.29 and GBP 845.68 per ounce.

Gold fell $16.70 or 1.29% yesterday and closed at $1,275.70/oz. Silver dropped $0.70 or 3.5% and closed at $19.32.

Gold rose in Asian trading after Fed Chairman Ben Bernanke said yesterday that the central bank may start scaling back bond purchases later this year, but he left plenty of doubt in the minds of market participants. Today, Bernanke testifies to the U.S. Senate Banking committee.


Gold Prices/Fixes/Rates/Vols – (Bloomberg)

Gold remains in backwardation signifying a very tight physical market and premiums in China remain high at nearly $30 per ounce with gold trading at $1,308.27/oz on the Shanghai Gold Exchange (SGE) this morning.

This would ordinarily would lead to a rally but the COMEX paper players remain dominant for the moment.

Gold briefly spiked over $1,300/oz yesterday after Bernanke said the Fed’s monetary policy isn’t on a “preset course” & starts of new U.S. homes unexpectedly fell sharply leading to renewed concerns about the U.S. housing market.

However, gold was capped at the $1,300/oz level where aggressive selling was seen on the COMEX and then gold fell from $1,297/oz to $1,278/oz quite swiftly. Analysts were confused as to the reason for the falls and they came despite a lack of market catalyst.

Despite much negative comment after the recent sharp decline in gold imports into India, India is set to see higher gold imports in 2013 than in 2012.

India’s gold imports are set to fall in the second half as the government curbs shipments in a misguided attempt to prevent a further devaluation of the rupee.

However, if current trends continue, India is set to see full year imports rise from 860 tons in 2012 to 902 tons in 2013 or a gain of nearly 5%.

Inbound shipments may drop 22% to 372.5 metric tonnes in the six months through December from 478 tonnes a year earlier, according to a median of estimates from 10 importers, jewelers, analysts and trade groups compiled by Bloomberg.

The full-year import estimates of 902 tons this year from 860 tons in 2012 are according to Bloomberg calculations based on data from the World Gold Council and the All India Gem & Jewellery Trade Federation.


Cross Currency Table – (Bloomberg)

Store of wealth buyers throughout Asia and the Middle East,  from Turkey to Dubai to India and to China, crowded retail outlets and bullion dealers to buy jewelry, coins and bars in April after the precious metal posted the biggest two-day loss in three decades. Demand has fallen from the record levels seen then but remains very robust.

As speculators in the west liquidate paper gold positions, the wealthy, middle classes and poor of the Middle East and Asia continue to buy gold jewellery, coins and bars as a store of wealth to protect primarily from the risk of currency devaluations.

NEWS

All Gold In Universe Could Come From the Collisions of Neutron Stars – Smithsonian

Gold Trades Little Changed as Investors Weigh Bernanke Comments – Bloomberg

Gold ticks up, Fed keeps up pressure with stimulus view – Reuters

Study shows crashing stars made Earth’s gold - Associated Press

COMMENTARY
China: “The Greatest Investment Bubble Known To Man” - The Telegraph

Oops, We Did It Again: Banks and Houses Dominate the Recovery – Dollar Collapse

Precious Metals Market Manipulation Round Table – Wall Street for Main Street

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Comments

  1. I’ve always liked the underdog.  The Indian people have had the jackboot of their corrupt government and its burrowrats on their necks for decades.  But you have to love a people who will not be thwarted in their acquisition of real money.  3 cheers for Sanjay and his family.

  2. I always wondered what the big deal was about the 8% tax hike on gold imports? Saying to myself, “If Indians purchased gold like it was going out of style when it was over 30% higher in the 18-1900′s and it’s their heritage, why would they stop due to an 8% hike over $1200?”. I mean, I believe in silver, I purchased it when it was $40, I purchased it at 30, at 20, and wouldn’t stop if the government imposed a 10% duty over 20 bucks!  If anything that would go e me a sense of urgency to purchase before they f@ck me harder in the future! What dumb @as govt body thinks they can curb desire by imposing penalties? 
     
    Alcohol was desireable… Until I became old enough to get it whenever I wanted.
    Getting a job was desireable, until I was expected to work for the rest of my life.
    Ignore a movement, it grows slowly, sometimes it fades… But crush it forcefully, it explodes, much like cancer… Best to leave it be, because “change” is the one thing that is certain in this world. (Like death)

  3. Hmmm    Desmonji?  Sounds demonic, desireable, delicious.  I think I’ll buy a bottle of Bombay Sapphire Gin and see how that works out.
    Interesting thoughts Shamus.   I used to drink alcohol as a replacement of things I didn’t have.  Once I started having the things I wanted, like a wife, business,and a nice chunk of the good life, alcohol became boring. 
    Now it’s my basic prepper gear as ‘snake bite’ medicine.  Besides which, the snakes that are lurking around this country make drinking a necessity  We also need to support the liquor industry—I think.
    Maybe it’s because I’m Scottish on the inside and Irish on the outside. Charlie’s sure to knows what that means.

    To me it means that golf has certain attractions, but I have not the remotest interest or  temperament for the wretched game.
    Alcohol is far more entertaining.
    But not to worry, I consume in moderation, being a card carry member of “The Drink of the Month Club’
    Once a month–whoo hoo! Whiskey makes me frisky
    Gin?
    well, you know what rhymes that.
    Cheers and bottoms up

  4. I’m no fan of vodka but a gin martini could be interesting.  I’ll engage that like Lt Cmdr Montgomery Scott did when asked to taste test Saurian Brandy.  “I’ll let you know’
    thanks for the idea. 

  5. there you go Pat.  Nice balladiers.  I grew up on Burl Ives,  Irish ballads, Here’s Holloway (Sweeney Todd the Barber and Evan’s Dorg ‘Ospital were my favs),  Gershwin, Lerner and Lowe, show tunes.  I’m surprised I don’t channel Judy Garland. 
    But most of my dittys today are taken from Rugby songs  and other like tomes of tunes.   

    • Hey, I think you might like this, since you’d cut your teeth on the more Pop variety of English-Irish ballads  … Pandora’s ‘English Folk’ genera ‘station’. They mix in some of that variety but a lot of artists who ply ‘originalist’ work … TRY it, I really think you’ll like it.

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