Indian Gold-Imports Drop; Bankster Supply Problems Remain

July 9, 2013

The Corporate Media was eager to trumpet the news that “an official source” claims gold imports into India fell from (a revised) 162 tonnes in May to 31.5 tonnes in June. However, this bearish headline came with a caveat: everyone expects the official number to bounce right back up again – thanks to the banksters knocking prices back toward recent lows.

Even with “premiums” and import duties, gold is once again “on sale” in India. While the gold import number for June is likely just an aberration; there are numerous other reasons why bankster panic over diminishing supply can only continue to increase.

First of all, we have several reasons to be suspicious of this supposedly “official” number concerning India’s gold imports. We need look no further back than May for reasons to doubt this report. India’s government originally reported its gold imports at a massive 262 tonnes. However, when that number drew a reaction of (bullish) shock from the market; the government immediately revised the number down to 162 tonnes.

It claimed the original report had been a “mistake”; a typo in an official government release, from a nation of more than ¾ of a billion people. Here it’s important to be aware of the intimidation being directed against the duplicitous government of India.

As previously noted; media/bankster claims that India has “a large current account deficit” are nothing but a lie; an accounting sham created by treating gold as a commodity not a currency – despite the fact that these same banksters always treat their own gold as a currency. In the world of bankster hypocrisy; when they hold gold it’s “money”; but when we hold gold it’s only a commodity.

However the pretext of a “current account deficit” is allowing the banking cabal to manipulate the value of the Indian rupee lower in global currency markets. This (naturally) raises “inflation” domestically in India; putting tremendous pressure on the Indian government. This is the bankster leverage which has caused India’s government to turn on its own people and attack its domestic gold market.

This means simply reporting lower gold imports for June reduces “pressure” on India’s currency in FX markets. It doesn’t even take a suspicious mind to conclude that the same government which quickly changed a “2” to a “1” when reporting its May gold imports may have simply done some preemptive erasing in reporting its June imports.

Then there is the second reason to be extremely dubious about actual imports of gold into India in the month of June: smuggling. Again, even the Corporate Media is forced to acknowledge that “gold smuggling” (into India) remains a serious and growing problem. Obviously anything the government of India does to increase the “official” price of gold or restrict the “official” supply only serves to stoke the blackmarket gold trade.

How vibrant is this market? Information here is difficult to come by (especially halfway around the world). However I was able to unearth a small excerpt on this subject, from an Indian source:

…According to officials, gold through the smuggling route has been consistently going up from Rs 7.42 crore in 2011-12 to Rs 60 crore in 2012-13 till date and still rising.

While I confess to being unable to translate those local units into dollars and tonnes; what we can all instantly recognize is the nearly tenfold increase in Indian gold-smuggling in just one year – “till date.”

What is just as interesting as the gigantic increase in Indian gold-smuggling is the date of this report: February of this year. This was well before India’s government had even begun to implement its most serious measures to raise prices and restrict demand. Unless/until hard data emerges;  we can only speculate at the exponential increase in Indian gold-smuggling since the government attacked the official market.

And the only thing which the banksters need to fear more than failing to curtail Indian gold demand is to succeed in doing so. Why? Just look at recent data on India’s silver imports. Numbers on Indian silver imports for April and May work out to an annual pace of roughly 10,000 tonnes per year.

This is well over double the previous record of 4,000 tonnes in 2011 – the year silver spiked to its short-term high of nearly $50/oz. Driving Indians out of the gold market but into the silver market is nothing more than the banksters shifting their sleazy asses out of the proverbial frying-pan, and into the proverbial fire.

Strangely, the same Corporate Media which was able to get “leaked” information on Indian gold imports is completely silent on Indian silver imports. One can only suspect this means another massive number regarding silver imports when official data is released in a couple of weeks.

Meanwhile, all anecdotal reports indicate that gold-demand in China remains rabid. It doesn’t release monthly import numbers; but when second quarter numbers are released for China’s gold imports in a few weeks’ time this will undoubtedly stun the world. Unlike the government of India; China is immune to Western threats/intimidation (thanks to its massive holdings of U.S. Treasuries) – and thus its own gold market is virtually beyond the reach of the Western banking cabal.

The relative impotence of Western banksters in restraining Asian bullion demand represents precisely only one half of the inventory crisis they are now facing. The other self-created problem from manipulating the price of gold below its full/actual production cost is the drying-up of “scrap” supply. There simply aren’t any Chumps wanting to sell gold at current, fraudulent prices.

Almost all the Stupid Money holding gold would have already sold anything they planned on selling during all of the “gold is a bubble” propaganda. Even the ability of the banksters to force new scrap-supply onto the market via creating economic hardship has been greatly reduced.

Many of the Emerging Poor in North America who did hold gold have already pawned that savings to the “cash for gold” Vultures. In Europe, scorched-Earth “austerity” tactics have squeezed-out virtually all of the available gold from that market.

Even with the reported reduction in Indian gold imports; India and China alone remain on a pace to import well over 100% of (available) annual global mine-supply. This deficit can only be addressed through scrap sales and/or liquidation of (Western) government stockpiles. If there is very little scrap gold coming onto the market; this leaves only one source.

Then there is one, other small problem: where is the gold supply for the Rest of the World? Globally, central banks are buying roughly 600 tonnes of “gold” per year at their current pace. However, many of these governments are quite content to allow this “gold” to be held/stored by the same Western banking cabal facing an unprecedented supply/inventory crisis.

One can only assume that all such “Chump” central banks are in fact purchasing nothing but more of the banksters’ infamous paper-called-gold. However, not all gold-buyers in the Rest of the World are so gullible. While the Smart Money drains official Comex inventories at an unprecedented rate; the global jewelry trade, and minted coin and bar sales requires real gold – not the paper promises of bankers.

How do our governments (and the banksters lurking in the shadows) deal with our soaring unemployment? They lie about it. How do they deal with shrinking GDP? They lie about it. How do they deal with spiraling inflation? They lie about it. Eventually, even those lies will need to be accounted for by the Liars.

However, when someone wants to buy a gold coin or gold bar or piece of gold jewelry and the cupboards are bare; there is no way that this can be wallpapered over with more media/government lies. That lie is exposed immediately.

Among the amusing pseudo-reasons given by the propaganda machine for us to shun gold (or silver) as an investment is that “you can’t eat gold.” Apparently such pundits have never spent a moment contemplating the lack of “nutritional value” in a greenback.

But while we can’t eat gold, we an certainly fabricate it into coins and bars and jewelry (and dental fillings, electronics, medicine, etc.). As the banksters are about to rudely discover; they can’t do any of those things with their precious paper.

Jeff Nielson

www.bullionbullscanada.com

Jeff NielsonJeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.

In 1934 President Franklin Delano Roosevelt devalued the dollar by raising the price of gold to $35 per ounce.

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