Gold surging today on lack of supply in Dubai and India banning gold imports into the country. Tell someone they can't have something and you almost guarantee that the demand is going to surge.
Meanwhile JPM's physical gold vault continues to empty....
India Bans new gold imports
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Austen Heller
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Re: India Bans new gold imports
So just a few days ago we were seeing a huge amount of short-covering, and now India, with around 17% of the world population, has just announced that they are banning gold importation? Coincidence?
Concerning JPM's emptying vaults, I read that the current price spike could be because they are being forced to buy up supply on the open market to meet delivery requests. This, along with the stories of multiple claims on each physical ounce that they actually do possess, makes me weary of holding any paper gold (like GLD) these days.
Maybe I am spending too much time over at ZeroHedge.....
Concerning JPM's emptying vaults, I read that the current price spike could be because they are being forced to buy up supply on the open market to meet delivery requests. This, along with the stories of multiple claims on each physical ounce that they actually do possess, makes me weary of holding any paper gold (like GLD) these days.
Maybe I am spending too much time over at ZeroHedge.....
Re: India Bans new gold imports
Zerohedge can be a claptrap....
JPM doesn't have to buy up physical. They can simply not deliver and deliver cash instead (force majure). What is significant though is that that don't have any physical. Scotia and HSBC have plenty of physical, but its not necessarily stored in the U.S. nor are they under any compunction to deliver any of it.
India is banning import to strengthen the Rupee. Good luck with that.
JPM doesn't have to buy up physical. They can simply not deliver and deliver cash instead (force majure). What is significant though is that that don't have any physical. Scotia and HSBC have plenty of physical, but its not necessarily stored in the U.S. nor are they under any compunction to deliver any of it.
India is banning import to strengthen the Rupee. Good luck with that.
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Libertarian666
- Executive Member
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- Joined: Wed Dec 31, 1969 6:00 pm
Re: India Bans new gold imports
I think a declaration of force majeure by JPM might have a little effect on the gold price, maybe just adding a zero. And zero is nothing, right?Larshus wrote: Zerohedge can be a claptrap....
JPM doesn't have to buy up physical. They can simply not deliver and deliver cash instead (force majure). What is significant though is that that don't have any physical. Scotia and HSBC have plenty of physical, but its not necessarily stored in the U.S. nor are they under any compunction to deliver any of it.
India is banning import to strengthen the Rupee. Good luck with that.
Re: India Bans new gold imports
Isn't banning gold imports to India kind of like banning beer on a college campus?
Aren't Indians some of the biggest gold enthusiasts in the world?
That just seems like a really stupid thing to do. Like double-dog stupid.
Aren't Indians some of the biggest gold enthusiasts in the world?
That just seems like a really stupid thing to do. Like double-dog stupid.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”