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This is what a government hell-bent on manipulating gold demand lower looks like

As regular readers will know barely a week has gone by in 2013 where India (the biggest gold buyers on the planet lest we forget), or to be more precise, the Indian government, hasn’t come up with some new-fangled initiative to manipulate the demand in gold lower.

Today Reuters have compiled a list of all the action that the Indian government has taken so far in 2013 – and quite a list it is too:

Jan 21 — The government raises gold import duty by 2 percent to 6 percent.

Jan 22 — The government more than doubles duty on raw gold to 5 percent.

Something we covered in detail here.

Jan 30 — Finance Minister P. Chidambaram says no plans for additional taxes or curbs on gold imports.

Feb 1 — The RBI plans to introduce three to four gold-linked products in the next few months.

The gold ETF proposal was all about getting Indians out of physical and into paper – again, something we covered here:

Feb 6 — The RBI says it would consider imposing value and quantity restrictions on gold imports by banks.

Feb 14 — The central bank relaxes rules on gold deposit schemes offered by banks by allowing lenders to offer the products with shorter maturities.

Feb 20 — Trade ministry recommends suspending cheaper gold jewellery imports from Thailand.

Feb 28 — India keeps its gold import duty unchanged in its annual national budget, defying industry expectations.

Feb 28 — India proposes a transaction tax of 0.01 percent on non-agricultural futures contracts including precious metals.

March 1 — Finance minister appeals to people not to buy so much gold.

March 18 — The Reserve Bank of India says it is examining banks that sell gold coins and wealth management products to identify “systemic issues”, with a view to closing any legal loopholes.

April 2 — Finance Minister suggests unlikely to raise the import tax on gold further to avoid smuggling and would instead introduce inflation-indexed instruments.

May 3 — The RBI restricts the import of gold on a consignment basis by banks.

June 3 — Finance minister says India cannot afford high levels of gold imports and may review its import policy.

June 5 — India hikes gold import duty by a third to 8 percent.

See this.

But, but… didn’t they say at the start of the year that they wouldn’t increase gold tax on gold anymore? Oh, we forgot, government’s around the world always get some special dispensation when it comes to lies.

June 21 — Reliance Capital (RLCP.NS) halts gold sales and investments in its gold-backed funds.

June 24 — India’s biggest jewellers’ association asks members to stop selling gold bars and coins, about 35 percent of their business.

Covered in more detail here.

July 10 — India’s jewellers could continue a voluntary ban on sales of gold coins and bars for six months.

July 22 — The RBI moves to tighten gold imports again, making them dependent on export volumes, but offers relief to domestic sellers by lifting restrictions on credit deals.

As we’re sure you’ll agree, that’s quite a list. And we also hope you agree with us just how transparent this manipulation of gold demand has been by the Indian government – but somehow the thought of other government’s doing their own kind manipulation, maybe involving ‘price’ rather than ‘demand’, is still an impossibility?

So just how successful has the Indian government been in denting gold demand? Two words come to mind, ‘not’ and ‘very’.

It seems that the Indian people agree with us – when the government is pulling out all the stops to get you to stop buying something, it’s time to start buying that ‘thing’, and buy it in size.

 

Link to this article: : http://www.goldmadesimplenews.com/gold/this-is-what-a-government-hell-bent-on-manipulating-gold-demand-lower-looks-like-11283/

Posted by on Jul 24 2013. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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