India’s Central Bank Denies It’s Selling/Trading India’s Gold

Just like the Fed isn’t engaged in QE?

(Silver Doctors Editors) A couple of days ago, the RBI said this:

Kudos for not being afraid to use the 4-letter word.

Why did the RBI make that statement?

Because of monetary value fluctuations in India’s gold reserves.

From Bloomberg:

The Economic Times had reported on Friday that the Reserve Bank of India started trading in gold actively since July, buying gold worth $5.1 billion and selling $1.15 billion worth. The newspaper cited data from the RBI’s Weekly Statistical Supplement.

The RBI further clarifies:

At least superficially, the RBI’s explanation passes the smell test.

Interestingly, the Reserve Bank of India keeps gold on its books valued at a floating market rate.

The US Treasury and the Fed keep US gold valued on the books at a fixed rate of $42.2222 per ounce.

What would happen if the US valued the gold on our books at a market rate?

Or at $10,000 per ounce?

Or $100,000?

Keith Weiner explored such a topic during our interview last week:

Do catch that interview if you have not already.