India planning to take lead in price-setting for Gold and other precious metals
 

Bablu Adhikari
Sep. 2, 2006


The Indian Government is taking and will continue to take all possible measures aimed at making India the gold hub of the world.
India now will refuse to follow London Metal Exchange's set prices. Instead it plans to set prices based on fabulous Indian demand.
According to media reports, India, world's largest importer gold with over 800 tonnes of imports, is set to become a global hub for the precious metal. "The Government is taking and will continue to take all possible measures aimed at making India the gold hub of the world," Company Affairs Minister P C Gupta told a global gold summit organised by Assocham.
Till last year, India did not figure as a major trading center of gold and silver in the international market despite being the world's largest importer and exporter of value added jewellery items, he said.
With commencement of future trading in gold, the scenario appears to be changing, Gupta said adding India thus is no longer be looked as a price taker or price seeker of the gold.
As per estimates of World Gold Council, the annual Indian demand for the precious metal in recent years has been over 800 tonnes, most of which is used for fabricaction, he said adding "we, therefore, have the potential of becoming a price-setter in the international market." On the policy front he said, as a part of special focus on jewellery in our foreign trade policy, the government has already allowed import of gold of 18 carat and above, freely under the replishment scheme. The government has also permitted duty free import of commercial samples upto Rs 1 lakh and duty free re-import for rejected jewellery equivalent to 2 per cent of Free on Board (FOB) value of export, he said.

link http://www.indiadaily.com/editorial/13067.asp

Re: India planning to take lead in price-setting for Gold and other precious metals
 

That might tend to pucker certain body parts on shorts.

If this comes to pass, the shorts will likely lose the ability to set price


Great post!

Re: India planning to take lead in price-setting for Gold and other precious metals
 

"India now will refuse to follow London Metal Exchange's set prices."

WTF Does the Indian government have to do with the price of a commodity? Does the government buy or sell gold?

Makes no sense, but might be good news.

Re: India planning to take lead in price-setting for Gold and other precious metals
 

Interesting. Nothing like a little monkey wrench in the machine once in a while!

Re: India planning to take lead in price-setting for Gold and other precious metals
 

Thanks a lot.

Very interesting post.

Looks as if India is giving the finger to some good 'friends' of ours!

:boxing:

Re: India planning to take lead in price-setting for Gold and other precious metals
 

This could mean higher gold prices due to the increased demand by India. If the Indian government sets the price below the world market price - they can demand all they want with no takers . . . .

Re: India planning to take lead in price-setting for Gold and other precious metals
 

Well, wouldn't that work both ways? If they set the price lower than the rest of the world they're gonna have plenty of takers on the buy side.

Actually, it should lead to higher prices due to not being manipulated - hopefully.

They want to be the market maker for the world.

Makes sense, if they're the largest destination -

Re: India planning to take lead in price-setting for Gold and other precious metals
 

They've really got an excellent point.

If they're the largest consumer of physical, why should their price be set in London? By a market dominated by paper.

Looks like an excellent prospect for the physical price to be truly determined by supply and demand instead of paper.

Re: India planning to take lead in price-setting for Gold and other precious metals
 

Hoarder? India buys more gold and silver than anyone else in the world, maybe China some day will be number one.

The reason for that is that there is no Social Security or anything else like we have in the US and their women actually wear all their gold and silver rather than to place it in a bank....... even the robbers respect this and never steals the shinning stuff from a woman.

Re: India planning to take lead in price-setting for Gold and other precious metals
 

The Indian government or the Indian people?

Re: India planning to take lead in price-setting for Gold and other precious metals
 

Isn't this backwards? Wouldn't they want a lower price rather than letting it be set by "fabulous Indian demand"?

Or is it a matter of the Indian population already having so much gold, that rising gold prices increases their available purchasing power as a nation and reduces that of the west where gold ownership is lower?

I'm thinking it might be that.

Re: India planning to take lead in price-setting for Gold and other precious metals
 

Exactly why should london determine the price of gold. At last the indian gubermint has woken up to the cold reality about etf, short selling of gold and the likes of the bullion banks.

I dont know if it is going to be bullish for gold. I hope there is some accountability to the gold market.

On the other hand there is so much money floating in india. The land owners and bussinesses dont pay their share of the taxes. The huge amount of underhand money has to channel itself somewhere and people buy land or assests such as gold.

This may be one way the rich in india are protecting their assests.

Re: India planning to take lead in price-setting for Gold and other precious metals
 

The LME sure hasn't covered itself with glory lately, allowing insiders to paper-trade nickel until they disrupted the market and then having to change the rules retroactivelly to save those insiders' asses.

http://news.silverseek.com/TedButler/1156198042.php

I suspect Ted Butler's right that it's only a matter of time till we see the same shenannigans in silver on the COMEX.

Anyone hoping to get rich off a silver price explosion may be disappointed, though. I suspect the insiders running the COMEX will do whatever fiddling with the rules may be required to prevent too much of a price run-up.

Longterm, though, this sort of corruption may signal an increased movement of important markets out of the declining West and into rising Eastern nations. The comming generation of Americans may have the opportunity to experience life as a disadvantaged "outsider" on the world's economic periphery, instead of their current priviledge at the center of world commerce.

Re: India planning to take lead in price-setting for Gold and other precious metals
 

The Indian people are the ones doing the buying as they have been doing for centuries........ they are right by wanting to take the lead as to the price of PM after all to the winner goes the spoils.

Once again "When the people take control of the PM market that will be the time when it will move up"

Re: India planning to take lead in price-setting for Gold and other precious metals
 

Indians traditionally never sell their Gold, it stays in the family forever.

so when you read about 800 tonnes a year going to India, I would guess over 80% of that will never get to market again, it has been this way for a LONG LONG time.