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Why is the gold price declining...

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  • Why is the gold price declining...

    ...perhaps this is part of the answer?
    No gold import; India's March gold export at 9 tons

    MUMBAI: All these years, India prided itself as the world’s biggest gold importer. But it looks as countries like China are going to overtake India in the import of gold, India in turn is turning an exporter of gold.

    According to the Bombay Bullion Association, India managed to export about 9 tonnes of gold coins in February and March. "India's domestic gold prices were about 3 to 4 percent lower than the import cost. So some of the traders bought gold from the local markets and converted them into coins and exported it," the Association said.

    The Reserve bank of India restricts gold exports by traders in bullion market as its impacts the partially convertible rupee.

    Last week, the Association reported that for a second month in row, India imported no gold, even though the country is the world’s largest consumer of the yellow metal.

    ”Part from high gold prices, people seem to have pushed forward their plans to purchase jewellery due to the growing uncertainty in global and Indian markets which has led to large scale retrenchments across sectors,” says economic analyst Manasee S. Gokhale who works with India’s second largest commodity bourse the National Commodity and Derivatives Exchange.

    He said March has been the second month where not a single tonne of gold has been imported in March against the 21 tonnes of gold imports during the same period last year.

    Imports of the yellow metal to India—the largest consumer and importers of gold in the world—are all set plunge to the lowest levels for the decade in 2009.

    In 2008, India’s gold imports dipped by 45 per cent to touch 450 tons. Bullion analysts have already predicted earlier this month that if gold imports continue to be sluggish, India’s gold imports will fall 380 tonnes in 2009.

    ”Gold imports are plunging thanks to the economic conditions that India is finding in these days. We expect overall imports below 380 tonnes for 2009," Vishal Patel, sales trader, India and Middle East, Commerzbank International, had told Commodity Online early this month.

    Analysts like Patel and the Bombay Bullion Association (BBA) said that for the first time in this decade, gold imports to India are going to take a big hit...



  • #2
    Re: Why is the gold price declining...

    I think there is a simple explanation : gold has become expensive and people are waiting for it to become cheaper. In the US and EU, gold is being used as a crisis hedge, since the average citizen is fearful for his job, his bank account, and his house. In India, though the market has crashed, and real estate is off its peak, the same sense of doom is not there..yet.

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    • #3
      Re: Why is the gold price declining...

      it's plausible that india's gold market would be less affected by the financial crisis which has been going on for a while, than it will be by the economic crisis which is still in the early innings.

      Comment


      • #4
        Re: Why is the gold price declining...

        fred posted this on mega's 'gold getting killed' thread...



        Note to iTulip newbees: iTulip does not cater to the attention deficit disorder trading crowd. There's a big difference between a thesis and a market call de jour.
        let's review the 2001 itulip thesis...

        - the usa has unsustainable debt levels that will lead to a debt crisis
        - gov'ts always, always, always print their way out of a debt crisis
        - gov'ts hang onto gold as reserves since 1971 even though gold is not officially a monetary unit. why? because they are hedging the collapse of there debt-based money system and curencies.

        has anything changed since then? no. in fact the debt crisis forecast has happened.

        the gov't printing its way out of the crisis has happened.

        all we have left to wait for is the currency crisis.

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        • #5
          Re: Why is the gold price declining...

          It's going down so I can buy more.

          Comment


          • #6
            Re: Why is the gold price declining...

            Originally posted by metalman View Post
            fred posted this on mega's 'gold getting killed' thread...



            let's review the 2001 itulip thesis...

            - the usa has unsustainable debt levels that will lead to a debt crisis
            - gov'ts always, always, always print their way out of a debt crisis
            - gov'ts hang onto gold as reserves since 1971 even though gold is not officially a monetary unit. why? because they are hedging the collapse of there debt-based money system and curencies.

            has anything changed since then? no. in fact the debt crisis forecast has happened.

            the gov't printing its way out of the crisis has happened.

            all we have left to wait for is the currency crisis.
            I just posted this for a laugh...

            So many, including the World Gold Council, foolishly think that gold lives or dies based on Indian jewelry sales, and the "wedding season"...:p

            I'll bet many of those same people think that Central Banks exist to promote price stability...

            Comment


            • #7
              Re: Why is the gold price declining...

              WHY ISN'T MY GOLD GOING UP!!?? :mad: :confused: :mad: :confused: :mad: (:p)

              Comment


              • #8
                Re: Why is the gold price declining...

                Originally posted by Lukester View Post
                WHY ISN'T MY GOLD GOING UP!!?? :mad: :confused: :mad: :confused: :mad: (:p)
                LIKE MY PROPERTY TAX BILLS??? :mad::mad::mad:


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                • #9
                  Re: Why is the gold price declining...

                  Just wait 'till they impose an asset tax on gold, then you get the best of both worlds. :eek:

                  Sweden used to have a "wealth tax", and still does have what's amusingly called a "profits tax" on private pension plans - the guvm'nt takes 1% of your capital each year, even in down years.
                  Justice is the cornerstone of the world

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                  • #10
                    Re: Why is the gold price declining...

                    Gold goes down because sellers are more urgent to sell than buyers are willing to buy? (Duuhh?)

                    Anyway, here is a Technical Update from one of the best chart technicians in the United States.
                    His calls on Gold for the past three + years have been excellent.
                    Attached Files

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                    • #11
                      Re: Why is the gold price declining...

                      Originally posted by cobben View Post
                      Just wait 'till they impose an asset tax on gold, then you get the best of both worlds. :eek:

                      Sweden used to have a "wealth tax", and still does have what's amusingly called a "profits tax" on private pension plans - the guvm'nt takes 1% of your capital each year, even in down years.
                      In the U.S. annual tax tab is 5% for pension funds.
                      Ed.

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                      • #12
                        Re: Why is the gold price declining...

                        Originally posted by FRED View Post
                        In the U.S. annual tax tab is 5% for pension funds.
                        Fred, are you saying that this is an annual tax on pension assets at the corporate level?

                        That would be hard to believe. Please elaborate.
                        My educational website is linked below.

                        http://www.paleonu.com/

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                        • #13
                          Re: Why is the gold price declining...

                          Originally posted by FRED View Post
                          In the U.S. annual tax tab is 5% for pension funds.
                          Huh? I concur with Rogermexico's request - kindly elaborate.
                          Most folks are good; a few aren't.

                          Comment


                          • #14
                            Re: Why is the gold price declining...

                            Just a guess, but inflation?

                            Comment


                            • #15
                              Re: Why is the gold price declining...

                              the "private pension plans" I named are the Swedish IRA equivalents, not funds. The fiduciary deducts the guvm'nts take each year, you see it on the statement but can't do anything about it.
                              Justice is the cornerstone of the world

                              Comment

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