Gold premiums hit record in India | Forex Factory

  • Gold premiums hit record in India

    From reuters.com

    Gold premiums in India, the world's biggest buyer of the precious metal, hit a record $100 an ounce, about 8 percent over London prices, on a shortage of supplies to meet festival demand, traders said on Tuesday. Banks, the primary dealers of bullion, are currently importing the yellow metal chiefly for exporters, as under the so-called 80/20 principle, jewellery exporters get priority for supplies over domestic manufacturers. The principle, part of a package of measures announced in July aimed at cutting India's current account deficit by reducing gold imports, states that 20 percent of all gold imported into India ... (full story)

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venzen
Oct 17, 2013 2:12am
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Quoting WhiteHorse
Gold,Silver,Diamonds will never go out of fashion.
exactly, gotta look good. Tell ya what, those wide purple neckties (with the diamond pin) from the late 60s - those will never come back into fashion!
Reply
chodd22
Oct 17, 2013 12:37am
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Quoting mrlfx
Agreed! But a lot of people think that one cannot eat or drink gold so its worthless.

My take if its leveraged account, never trade gold. It will clean your account of any equity. But buying it physical or holding it at 1:2 at the maximum for longer term is a different issue.
That argument has never won since gold was discovered. It is the only universal form of currency in any nation that would be accepted anytime. The nation with the most wins. During WW2, fiat currencies weren't even accepted...shiploads of Gold and Silver bullion were how governments paid for arms, food and protection...has been such since men knew how to war with one another.

Never understood the reason to argue golds value...in times like these, its just a matter of hedging against the central banks need to keep it in check...helps keep inflation in check...deflation in check...etc. Can't hold it back forever though, infinite printing will not end well. Ask the Germans in early 1900's
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mrlfx
Oct 17, 2013 12:05am
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Quoting WhiteHorse
Indians are smart they know holding precious metal is better then holding worthless papers.
Agreed! But a lot of people think that one cannot eat or drink gold so its worthless.

My take if its leveraged account, never trade gold. It will clean your account of any equity. But buying it physical or holding it at 1:2 at the maximum for longer term is a different issue.
Reply
WhiteHorse
Oct 17, 2013 12:14am
Permalink
Quoting mrlfx
Agreed! But a lot of people think that one cannot eat or drink gold so its worthless.

My take if its leveraged account, never trade gold. It will clean your account of any equity. But buying it physical or holding it at 1:2 at the maximum for longer term is a different issue.
if every thing was about eating and drinking, this world would be more beautiful place, but thats not the case.
Reply
WhiteHorse
Oct 17, 2013 2:34am
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Quoting venzen
exactly, gotta look good. Tell ya what, those wide purple neckties (with the diamond pin) from the late 60s - those will never come back into fashion!
it will, just like forex every thing rotates in cycles, thing which goes comes back, wait for 200 years, and people will again wear those pins
Reply
WhiteHorse
Oct 16, 2013 11:48pm
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Indians are smart they know holding precious metal is better then holding worthless papers.
Reply
WhiteHorse
Oct 16, 2013 11:49pm
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Gold,Silver,Diamonds will never go out of fashion.
Reply
Freevestor
Oct 17, 2013 1:42am
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Gold prices are dropping (futures), but physical is still in high demand.
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