Sharp Drop in Gold And Silver Prices Has Stimulated a Surge in Buying From India!
He who has the gold makes the rules!
- Despite the massive paper manipulation in Crimex, Asians are accumulating physical gold and silver. These lower prices is causing a surge in demand. The reality is: the bullion banksters’ price manipulation lower is causing existing inventories of physical gold/silver to be depleted at an even faster rate. Crimex will go bust sooner not later when they run out of physical metals for delivery. The rests of the world are laughing at the bullion bankster idiots. Thank you very much! With inflation rising worldwide, the Chinese and Indians are fleeing fiat currencies into gold and silver!(emphasis mine)By Jack Farchy and James Fontanella-KhanFinancial Times, LondonThe sharp drop in gold and silver prices has stimulated a surge in buying from India in a sign that consumers in the world’s largest gold-buying country retain faith in the decade-long bull story for precious metals.Bankers have been surprised by the strength of Indian demand in the past week, when gold dropped below $1,500 a troy ounce and silver tumbled below $35 a troy ounce.UBS and Standard Bank, two large bullion dealers, have enjoyed some of the strongest days of sales to India this year, according to analysts at the banks, while others reported a similar surge.The buying from India, which accounts for a fifth of global gold demand and a 10th of demand for silver, comes as some investors in the west have cut exposure to precious metals and other commodities, spooked by a series of steep falls and the imminent end of quantitative easing in the US. Investors have cut their holdings of gold and silver through exchange-traded funds by 1.4 per cent and 5.7 per cent respectively in the past two weeks.But in Mumbai’s bustling Zaveri market, the gold hub of India’s wealthiest city, traders were suffering from no such jitters. Indeed, they were fiercely elbowing one another to grab as many shiny bars as possible last Friday amid expectations that falling prices would cause demand to soar.“Tonight people will be invading the market to buy gold. … I’m here to refill as I’m running out of bars,”said Amit Soni, a vendor standing in the packed store with a bag of cash in one hand and his mobile in the other to monitor the sales back at his shop. The apparent confidence of Indian consumers in a rapid price rebound could provide a floor for the market, analysts said.Walter de Wet, head of commodities research at Standard Bank, said that gold would “continue to push higher” and touch new highs this year. “The metal has reached $1,500 and we expect it to consolidate above this level soon,” he said. On Friday gold was trading at $1,487, down 0.5 per cent on the week, and silver at $34.50, down 2.8 per cent on the week.Indians traditionally buy gold for weddings or festivals, but traders say the nature of the market is shifting as gold and silver buyers become more speculative.In common with many emerging economies, high inflation in India is driving investors into precious metals as a store of value when rising prices erode the value of their paper currencies. For that reason, many analysts and investors believe gold prices could soon resume their upward march and reach new record highs before the year is out.Chhabil Jain, a Mumbai silver trader, said that demand for silver bars was going through the roof and that many vendors were starting to run low on stocks.“People are booking incredible amounts of silver as they see the current drop in prices as a great opportunity to buy more … most are buying for pure investment,” he added.
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