Friday, August 30, 2013

India's gold: the bankers' last hurrah.

We have been warned it is coming. There were negotiations between the Indian govt and ?(the BIS?) to rent India's 200 tons of gold to make one more stab at breaking the gold mining industry. As long as paper gold is regarded as real, gold prices can be dropped by selling options with the pretense that the gold will be actually delivered.

Parallel with the possible loaning of its gold, the Indian govt  has also raised taxes on gold purchases to 10% to discourage buying gold by Indians.

So, here we go again.

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