India Seeks to Prohibit Sale of Gold Coins

Adam Taggart
By Adam Taggart on Thu, Jun 6, 2013 - 1:27pm

From Reuters:

India fin min says RBI has advised against selling gold coins

The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit.

"I think the Reserve Bank has advised banks that they should not sell gold coins," said Chidambaram, while speaking at an event in Mumbai.

In terms of suppressing demand, this should probably work as well as every other government prohibition in history..

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Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2391
For now, the action is on the supply side... not price.

Jesse is doing an extraordinary job of highlighting the fundamental issues right now in his blog... really focussing on this Gold market - here is an excerpt from yesterday;

While the music keeps playing, they must keep dancing, as former CEO Chuck Prince of Citigroup said during the run up to the recent financial crisis in 2007.

There are a total of 374,891 gold contracts open now representing 37,489,100 ounces.  Of those 214,870 contracts are open for the next active delivery month of August representing 21,487,000 ounces.

The average daily volume of trading is about 165,000 contracts, representing 16,500,000 ounces.

Very few contracts are ever taken to delivery. The price setting mechanism for the global gold market these days is largely a paper exercise involving little actual metal ever changing hands.

While this facilitates speculative interests, it is hard to rationalize how this depth of liquidity and volatility, without ties to fundamental anchors of supply and demand in the real world, provides any real benefit to producers and consumers who wish to obtain products and hedge risks.

I think that the exemptions that were granted to some institutions which are neither legitimate producers and users of the commodities, or representatives of producers and users, has financialized the markets to an extraordinary degree.

The lack of effective position limits and disclosures for the basis of very large positions, specifically in the silver market for example, is setting up a potentially volatile situation. And that is surely visible to other organizations and entities around the world.

While the bullion banks, and their Central bank masters still have control over this price facade, we will have to look elsewhere for signals from this market... as Adam has done by publicizing the article above.  If the bankers want to slow down physical demand.. they are going to have to slow down India, for one.  It is all so predictable, and literally laughable.  

The game of physical Gold musical chairs is getting closer and closer to the moment when the music stops.  

We will also hear more and more "anecdotal" tales of games being played with physical metals as the end nears, like this letter from a financial advisor sent on June 6 to Steve Quayle;

I have been a broker for 20 years. Recently the major broker dealer I work for asked me and my clients to leave due to too high of a concentration in physical metals. After 4 months of trying to find a new home for my business, and being denied by every major broker dealer in the US, I had no choice but to become an RIA.
After three months of complete BS getting my RIA approved I am now in the process of moving my clients and metals to the new custodian.
Here is where things get interesting. Every transfer is being rejected multiple times for the any reason the old major broker dealer can come up with.

More interesting is all of the metals which have variable weights like 1,000 Silver, 100 oz gold and 50oz platinum, when the old broker dealer finally does transfer the metals to the new custodian, NONE of the bars are the same in weight or serial number as my clients statements. The old broker dealer is having to come to me and my clients with bars of different serial numbers and weight than the one listed on the statements or from old trade confirms.

This mis-match on transfers proves to me that the old broker deal NEVER had the metals and are now having to go acquire them to make good on client transfers. Coincidentally, I was also a broker at Morgan Stanley in 2006 when MS got busted for excessive storage fees and it turned out MS never owned the metals that were printed on client statements either.

If you have been watching carefully, the facade is really developing some obvious cracks now... Dave from Denver has done an excellent job of discussing the ramifications of the new, slippery legal language that Comex slipped into their disclaimer about inventory records;

Here's my Golden Rule:  banks can not be trusted at all.  Fool me once, shame on you;  fool me twice, shame on me; fool me three times, I'm a moron.  Got it?

With that in mind let me clarify how the Comex warehouse gold and silver stock reports are produced.  Each bank that operates a Comex vault is responsible for keeping and maintaining all accounting records in connection with operating their vault.  This means that all of the reports and data that the CME uses to produce its warehouse stock reports come from the banks themselves.  They are paper accounting records the bank produces and sends to the bean counters at the CME.  There is no actual independent audit of the reports OR of the bars themselves that are reported to be held in each bank vault.  Everything the CME publishes is based on what is reported from the banks.  Do you still trust these reports?  If you do, re-read my Golden Rule.

Please DO NOT CONFUSE the reliability of paper records and the reliability of any bank not acting fraudulently with regard to those paper claims with actual physical gold that is sitting in an allocated account and bars for which the rightful owner has legal entitlement. Paper is NOT to be trusted - in any form.

A large portion of the gold that is being reported by the Comex vault operators is likely not really there to be reported. Now, "not being there" could well mean that there is a lease-claim attached to it or some other form of hypothecation. Just because bars are sitting physically in "registered" or "eligible" accounts does not mean that the  intended owner of that bar has a legal entitlement to that bar.

Review the laws connected with short-selling and hypothecation. When an asset is sold short or  hypothecated, the original holder of that asset unknowingly loses legal title to it.  The fact that the legal department at the CME now requires a disclaimer about the bank reports that are used to produce the Comex warehouse gold and silver stock should tell us all we need to know about the nature of those bank reports, especially when considered in the context of all of the other fraud that banks have been involved in over the last couple decades. 

Got Gold?


davidboon's picture
Status: Member (Offline)
Joined: Jul 25 2013
Posts: 1
I don't know why people are

I don't know why people are talking about the gold and just gold I found very interesting site on the internet and they are providing very famous coins I am going to share here please share your views on it rather I bought somes coins from there or not site is listed below


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