A must read article. It's important in our view
because it furnishes the reader with a rare insight into the scheming of a
predatory central government.
What are the government remedies to protect the status quo from their
citizens taking precautions to safeguard the economic welfare of themselves
and families without depending on the government?
Not surprisingly, the reader will discover the government, admittedly,
recognizes the urgency to get the physical gold out of the hands of private
citizens ('consumers'). The methods to be employed? Paper substitutes! We
believe China's creation of the Shanghai Gold Exchange, under Rothschild
banking supervision, is China's anticipatory move to deflect its own citizens
from physical to paper. The Chinese have a greater affinity for silver as
Let's watch this story unfold, and LEARN from it. The scheming of
India's central bank is no different from all the others! The US president
can deploy an Executive Order still on the books to take control of all
personal gold held by Americans.
India is crucial. Not only does India have the longest experience
(millennial) with physical gold as money, but Indian citizens hold
more gold than Ft. Knox (supposedly), and US citizens combined! (Click
on the link to the left to learn more of their fascinating history)
Governments in the forms they've taken today, be they
socialist/fascist/mercantilist, are the enforcement agents to cover the backs
of the banking cartel that controls them.
Are you beginning to see now how the United Nations and its armies fit into
the grand design?
India's Reserve bank looking to put idle household
gold to better use
In a bid to temper imports of the yellow metal, the
country is considering alternative financial routes to help bring out the
gold currently sitting in Indian households.
Author: Shivom Seth
Posted: Friday , 13 Jul 2012
MUMBAI (MINEWEB) -
The Reserve Bank of India is looking to mobilise
the country's idle gold deposits. The apex bank is mulling ways other than
direct curbs on imports of gold to reduce the current account deficit.
With gold imports contributing substantially to India's current account
deficit, a bank instituted panel is looking into the aspects of devising some
Anand Sinha, deputy
governor of the Reserve Bank of India (RBI) said the bank is considering
financial instruments that mimic the returns on gold.
"Gold imports have been a substantial part of the current account
deficit. Therefore, it is being looked at what best can be done. Import is
one aspect, the other aspect is that the gold that already exists in the
country can be brought out to satisfy the demand by devising financial
instruments which can mimic the returns on gold,'' Sinha
The idea is to put the idle gold to productive use, said Sinha.
The RBI has been contemplating measures for some time now to ensure the
country consumes less physical gold, since the nation's craze for the yellow
metal is putting India's external trade at risk.
India imported $45 billion worth of gold in 2011-12, an increase of 3% year
on year although physical imports fell 17% to 854 tonnes
from 1,034 tonnes due to high international prices
which was amplified by the weak Indian rupee.
Analysts say gold imports further declined as the government stepped up
measures to control the precious metal's flow into the country.
During the March quarter, gold imports are estimated to have fallen 68% to a
mere 90 tonnes, compared with 283 tonnes in the corresponding quarter a year ago.
The country's CAD, which is the difference between total imports and
transfers and total exports, widened to the highest ever level to 4.5% of GDP
at $21.7 billion in the January to March period of 2011-12.
To ensure that India's estimated 18,000 plus tonnes
of gold held by consumers for the past several years
moves out of households, the government has been deliberating various
Union Finance Minister Pranab Mukherjee, while
presenting the annual budget for 2012-13 in March, said that gold imports
should be restricted to control the swelling current account deficit.
Following that, the RBI tightened guidelines for gold loan companies.
The apex bank has also set up a working Group, headed by K U B Rao (a senior RBI official) to examine the linkage
between gold imports and pledging of jewellery with
gold loan companies like Muthoot Finance and Manappuram Finance that have witnessed enormous growth in
the past few years.
In a Financial Stability Report, the RBI said that banks' import of gold
coins for retail sale to households has risen from just 1% of total imports
by banks in 2009-10 to 3.8% in 2011-12. It expressed concerns over the issue
as households investing in the metal could reduce the availability of funds
for the financial sector and thus shrink economic growth.
RBI said as much as 23% of all gold imported is for investment purposes in
India and said even its use in jewellery at 75% has
an investment element for households.
Traders and analysts said it is difficult to guess the type of financial
instruments that RBI will introduce to match the returns on gold investments.
Some said that the apex bank could look to strengthen financial products such
as e-gold, gold futures and gold exchange traded funds or inflation indexed
bonds to curb import of physical gold.