This Certainly Isn’t Going to Help Our Banker Friends…
From PM Fund Manager Dave Kranzler:
Mehul Choksi, chairman of jewellery store chain Gitanjali Gems Ltd., is quoted as saying: “We expect some heavy buying in April as a large number of weddings are expected to take place. – LINK
Legal Indian gold imports jumped up to 96.4 tonnes in February vs. February 2016. These numbers come from the finance ministry and not the World Gold Council or bullion banks. This reinforces the observations by many that the BIS-directed attempt to curtail Indian gold demand by removing cash from the financial system has failed.
Gresham’s Law in action. This number also does not include smuggled gold which, based on the increase in airport arrests so far in 2017, has ramped up considerably.
Amusingly, Cititgroup is forecasting total 2017 demand in India to be 725 tonnes. This number is laughable. Smuggling alone is thought to account for about 300 tonnes per year of gold going in to India. As a bullion bank with an untenable paper gold short position, Citigroup can only dream that India’s gold importation will be that low in 2017.
There will be a big “snap-back” effect on India’s gold demand after the brief intervention by the Government in late 2016. Based on yesterday’s response in the paper gold market in NYC after the Fed’s rate hike announcement, it seems that the western Central Banks/bullion banks are losing control of the bullion market.