India’s Big Gold rush !!

India is going its own way  and it seems it know what it wants … with a $US6.7 billion gold purchase. The transaction turned heads in markets. It should do the same in capitals from Beijing to Washington.  The Chinese  beauracats have  been left thinking  , if the Indians have stolen a quick one  while thery were nto paying attention to the IMF.

India’s 200 metric-ton deal wasn’t huge considering how much gold central banks hold. It’s the symbolism that matters as the US struggles to keep the dollar’s slide orderly and panic- free. Consider India the vanguard of central banks more aggressively diversifying reserves away from US assets

3 things we can conclude from India’s gold rush.

  • The dollar’s is just getting worse.
  • Mounting US debt is  still a worry
  • This US recovery  Doesn’t not look like a convincing one.

gold medicine china india

Asia’s tolerance with falling US assets is evaporating. India’s gold grab from the International Monetary Fund’s bullion stash is the latest reminder of that.The price of gold leapt to a record peak of $US1,093.10 an ounce in trading in London on Wednesday in the wake of the International Monetary Fund’s massive sale of the precious metal to India.

Two, India’s got game. China doesn’t talk much about its currency reserves, yet you have to imagine a few top officials in Beijing are red-faced this week. "How on Earth did India beat us to the punch?" policy makers must be asking. China seemed the overwhelming favorite to get the first chunk of the gold the IMF is offloading to shore up its finances.

India has now gone past Russia to become the ninth-biggest government holder of gold, China is now looking at even higher precious-metals prices.

Gold had already reached a record high of $US1,087.80 on Tuesday as the IMF said it had sold 200 tonnes of gold to India’s central bank over a two-week period last month for $US6.7 billion ($A7.42 billion) to bolster its finances.

While India’s people are major gold hoarders, the government hasn’t been a big one. India really did display the savvy of a hedge fund here. It got what it wanted, surprised markets and will sit back and reap the benefits as gold rallies.

LINK :
GOLD FEEDRSS

http://www.goldinvestmentstocks.com/

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