Founf this article about Gold from last MayLots of accurate comments regarding Gold...India, and China. Like I have said before.....Gold has plenty of upside ..
So does NKA.
Is India now IRRELEVANT to the gold market?
With the exception of the 4thquarter of last year, Indian gold-buyers – once the cornerstone ofglobal demand – have virtually disappeared from the global gold market.
As most will recall, during the 4thquarter of 2008, a Wall Street-engineered market “crash” (andsubsequent panic) caused a brief plunge in the price of gold, to a lowof less than $800/oz U.S. During that quarter, Indian gold-demand surged 84% over the same period in 2007. This is no surprise, as Indian buyers are legendary for their “price sensitivity”.
Inthe past, this has served them well, as they have managed to shrewdlybuy most of their bullion during market troughs. However, for numerousreasons, those days appear to be gone for good – meaning that Indiangold-buyers are simply pricing themselves out of the market, whilerecord-demand in most of the rest of the world keeps the price of goldabove $900/oz (and clearly poised to set new, record-highs).
Indeed, some sources suggest that India was actually a net exporter of gold in February and March of this year (see “Indian gold EXPORTS holding down price temporarily”). With these months usually being a time of strong demand from India, there were countless “gold bears” predicting a dramatic plunge in the price of gold.
As I explained in a more recent commentary, those “bears” are simply living in the past (see “Gold demand driven by investment...PERIOD”). Indian demand is officially classified as “jewelry demand” (although in reality, while Indian gold is bought in the form of jewelry, it is clearly purchased as an investment). While jewelry demand fell by a modest 6% in 2008, retail investment demand increased by nearly 400%.
Meanwhile, state purchases of gold are also soaring. Russia has been a net buyer of gold for many months. China recently announced it had increased its gold reserves by 76% since 2002, becoming the 5th largest holder of bullion. This has been backed-up by smaller purchases by assorted other nations around the world – even the European Central Bank was briefly buying gold.
Thisstrength in both the demand for gold and the price for gold comesdespite a frantic effort by the Manipulators to drive gold lower.“Lease rates” have been kept negative, meaning that at a time of record demand for gold, the Wall Street banksters who lead the anti-gold cabal have been paying people to borrow (and “short”) gold.
Thisis one of the many outrageous acts by these criminals whichconclusively demonstrates the overt manipulation of the gold market,but naturally the corrupt, U.S. regulators at the CFTC continue tosimply 'look the other way' – as they have been doing for more than a quarter century.
Addedto this, the Manipulators have been getting the U.S. propaganda machineto announce (and “re-announce”) the supposed sale of 400 tons of IMFgold. This one “sale” has been trumpeted by the propagandists on atleast three or four separate occasions over the last year (since theoriginal announcement), despite the fact there has never been final approval for such a sale, and not one ounce of gold has left IMF vaults.
Partof the problem for the Manipulators is that they have already depletedmuch (most?) of the bullion-holdings of the European patsies (such asthe U.K.'s Gordon Brown) who have back-stopped their multi-decadecampaign of price-fixing. Now those sales are trickling steadily lower,as there is an increasing public backlash over squandering the one valuable asset in their currency reserves.
Thus, the loss of Indian gold buying has largely been negated by the reduction in European gold dumping. This leaves the explosion in retail and sovereign demand as the driving force in this market.
Now gold is on its way to $ 1200.00
Cheers, M