All gold news, all the time!
Reuters - Indian jewelry exports down. Gold jewelry exports are down over 50% over the last 6 months, which I guess is exactly what the Indian government wants to do in order to reduce their current account deficit. Because it's exactly the wrong way to go about it and the Congress Party loves doing everything the wrong way.
Mineweb - Chidambaram wants to kill gold imports. Quote:
Chidambaram reiterated the ministry's stand to restrain gold imports for jewellery manufacturing for the domestic market and said the government was fully aware of the effects for the jewellery industry.Ouch. He's just come out and demanded that the jewelry industry recycle Indian gold. Which would mean India not buying any more outside gold. When will the goldbugs realize their enemy is Chidambaram, and not Bernanke?
He added that the policy in constraining or restraining gold coming into India was for conversion into jewellery. “That is a deliberate policy we have taken. There is a huge amount of gold within the country. We have no problem if you buy that gold and use it for jewellery. The under-utilisation of gold jewellery capacity is an intended consequence,'” said the minister.
Incidentally, the All India Gems and Jewellery Trade Federation has asked the government to reduce import duty to 5% and bring back the earlier letter of credit to 'rescue' the industry.So what do you expect Narendra Modi's first actions are going to be if he gains power next May? I mean, the Gujarati jewelry industry is one of his core constituencies.
The association has written to the Finance Minister and has strongly advocated immediate reforms and other credit buying of gold. In a letter to the Finance Minister, Federation Chairman Haresh Soni said, "When the gold import is restricted under the 80:20 scheme, there is no way the import of gold is going to mount, until and unless there is a growth in overall exports."
IKN - why would you buy a silver miner? Why own any of these companies when the only way they can become profitable is by high-grading, thus killing their own reserves? Thus the carnage will continue til the metals convince the market that they've stopped going down for good.
Mineweb - let's see what Rick Rule has to say about all this. Quote:
Rule theorizes that the gold market is now suffering from both seller and buyer exhaustion, which might be a good thing for some investors. Mutual fund sector holdings in gold are gone, for instance.Then again, maybe he's only saying this cos he wants to sell you his shares.
However, since practically no one is left to sell, Rule suggests, “The best issues in the sector might begin to melt up” instead of melt down.