“After a gap of nearly five months, there is some cheer emerging from India for the bullion market,” begins a Mineweb report, “as buyers appear to be taking advantage of the relatively low gold prices. Gold demand has picked up across the country, according to traders, despite it being an ‘inauspicious’ period as per the Hindu calender.” The period’s end, which occurred on Wednesday, “also marks the beginning of festive buying that peaks around Diwali,” the start of the Hindu New Year.
Given the Indian government’s restriction on gold imports, the buying season’s surge in demand is being met by another surge, one that has reportedly seen 50 tonnes of gold smuggled in over 10 days.
Jesse’s Café Américain puts the contextual icing on that cake: “So much for the mainstream media reports of a waning interest in gold in India and elsewhere. To put this into perspective, there are just under 32 tonnes of total registered gold on the Comex.”
See also:
Bloomberg: Gold rebounds from eight-month low as U.S. equities slide
Dan Norcini: Stock market weakness brings safe-haven buying into gold, bonds:
Business Insider/The Trading Report: NYSE margin debt drifting higher again; 5 U.S. banks each have $40 trillion in exposure to derivatives
John Hussman: The Ponzi economy
Zero Hedge/Joseph Stiglitz: China set to fire its central bank head, unleash the liquidity floodgates; “The U.S. will always pay its debt. Because it just prints the dollars.”
Pragmatic Capitalism: The great gold debate