You are here
India might solve its gold 'problem' by remonetizing the metal
4:31p ET Tuesday, July 1, 2014
Dear Friend of GATA and Gold:
MineWeb's Shivom Seth reports from Mumbai that India's government may be starting to figure out a solution to what it supposes to be the country's gold problem -- that is, to recognize gold as money again. The idea, so far, would be to allow gold held by banks to count toward cash and liquidity reserve requirements.
The chairwoman of the State Bank of India, Arundhati Bhattacharya, is quoted as saying: "Gold is after all a store of value," adding that there is a need "to make use of gold available in the country, and make it more liquid."
... Dispatch continues below ...
Just for June: 1-Kilo Gold Bars At Only 1.6% Premium
and Six Months' Free Storage In Singapore Or Zurich
For June only GoldCore is offering 1-kilo gold bars at a premium over spot of only 1.6 percent. This is great value as premiums on kilo bars are usually 2 to 3 percent. For new purchases GoldCore is also offering six months of free, insured, segregated, and allocated storage in Zurich or Singapore.
For more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1-302-635-1160 in the United States. Or email them at info@goldcore.com.
It's not hard to think of ways to accomplish that.
Not so long ago, gold was money itself and was minted into coins with the sovereign's seal on them, certifying their weight and measure, and government currencies were redeemable in a fixed amount of gold.
Of course there's no need to go completely back to the future. A fixed weight of gold could always be recognized as an independent currency in itself, priced at market against the domestic currency and other currencies and held on bank, corporate, and personal balance sheets in both its own weight and the equivalents of those other currencies. Loans could be issued in gold and require repayment in gold. (Not so long ago they used to do that sort of thing too.)
Such policies might not do much for the rupee, but then if, as their huge inventories of gold suggest, Indians would prefer a metallic currency, that may be the price of fully mobilizing their enormous savings and bringing their country into the rank of the great powers.
If gold as money ever had the full support of a government and central bank and was priced in a free and transparent market, liberated from the price suppression of the infinite unbacked claims of the futures markets and the fractional-reserve gold banking system, its price would explode and India might transform itself from a struggling, developing country into another Switzerland as quickly and you could say, "Goodbye, International Monetary Fund."
Seth's report is headlined "India Looking at Ways to Monetize its Citizens' Gold" and it's posted at MineWeb here:
http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=246041&s...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Join GATA here:
Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014
http://www.caseyresearch.com/summit/2014-fall
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014
https://jeffersoncompanies.com/new-orleans-investment-conference/home
* * *
Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:
http://www.goldrush21.com/order.html
Or by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
Buy precious metals free of value-added tax throughout Europe
Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries.
Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world.
Visit us at www.europesilverbullion.com.
