Hello Friends,
Repeating the previous concerns. I cannot say this loud enough - (proof is in the pudding) check the ground realities & decide for yourself.
Physical Gold & Silver hold more value than paper & there is evidence of the shortages of actual physical delivery in Precious metals and we must not ignore the ground realities.
Here's the Delivery price for Physical Gold in the Delhi Gold Bullion market today dec-11 (Delhi Sarafa Bazar) = Rs 30,755 per 10 grams of Gold = approx USD $1560 (per troy ounce)
FYI - 1 Troy ounce = 31.10 grams , & today's exchange rate : $1 USD = Rs 61.30
Now compare that to :
COMEX New York Spot Price of Gold today = $1257 per troy ounce
There is a premium of around $300 per troy ounce between Paper Gold at New York & between what is actually being physically bought & sold in one of the biggest Gold markets in the World - Indian Gold Bullion markets of Delhi & Mumbai.
Now we all know there has been a premium on the Price of Gold - between what is quoted in the Paper Markets in New York & what is available for physical delivery in India.
However this gap has greatly widened & even though there is a price differential of about 24 - 30% between New York & New Delhi, still there is sufficient demand to soak up the excess supply.
Indian Gold Bullion prices physical delivery = + 10% Gov't Import duty + 14% Premium for physical delivery (above the spot price) = $1560 per troy ounce
Yet people are lining up to buy physical Gold that they can hold in their hands, as they expect a future supply shortage.
If there was no shortage in the supply of physical Gold - then premiums would not go up this high.
However the time is coming - when people will loose faith in the paper markets. As we all know they are being manipulated.
Take a look on the other side of the Ocean & have a look at the actual physical demand vs shortage in physical supply of Bullion.
Repeating the previous concerns. I cannot say this loud enough - (proof is in the pudding) check the ground realities & decide for yourself.
Physical Gold & Silver hold more value than paper & there is evidence of the shortages of actual physical delivery in Precious metals and we must not ignore the ground realities.
Here's the Delivery price for Physical Gold in the Delhi Gold Bullion market today dec-11 (Delhi Sarafa Bazar) = Rs 30,755 per 10 grams of Gold = approx USD $1560 (per troy ounce)
FYI - 1 Troy ounce = 31.10 grams , & today's exchange rate : $1 USD = Rs 61.30
Now compare that to :
COMEX New York Spot Price of Gold today = $1257 per troy ounce
There is a premium of around $300 per troy ounce between Paper Gold at New York & between what is actually being physically bought & sold in one of the biggest Gold markets in the World - Indian Gold Bullion markets of Delhi & Mumbai.
Now we all know there has been a premium on the Price of Gold - between what is quoted in the Paper Markets in New York & what is available for physical delivery in India.
However this gap has greatly widened & even though there is a price differential of about 24 - 30% between New York & New Delhi, still there is sufficient demand to soak up the excess supply.
Indian Gold Bullion prices physical delivery = + 10% Gov't Import duty + 14% Premium for physical delivery (above the spot price) = $1560 per troy ounce
Yet people are lining up to buy physical Gold that they can hold in their hands, as they expect a future supply shortage.
If there was no shortage in the supply of physical Gold - then premiums would not go up this high.
However the time is coming - when people will loose faith in the paper markets. As we all know they are being manipulated.
Take a look on the other side of the Ocean & have a look at the actual physical demand vs shortage in physical supply of Bullion.
various sources :
http://jessescrossroadscafe.blogspot.ca/2013/12/india-gold-price-premium-still-rising.html
http://zeenews.india.com/business/bullion/bullion-news/gold-price-today-latest-updates_90375.html
http://www.kitco.com/
Traders & speculators may continue to sell truck loads of paper gold in the market to depress the prices.
However the disconnect between the physical Bullion & paper markets will continue to widen, until there is no more physical bullion left to be sold at these low prices.
Wake up & smell the coffee.
Hold onto your physical metal & wait till the prices spike before you decide to sell any.
Best Regards,
Read My Blog - Simplifying the Jargon in Plain English - Economic, Political & Astrological perspectives at : Rahul's Café Canadian
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Rahul
Vashisht
Quote : Turn your face towards the sun and the shadows fall behind you.
Quote : Turn your face towards the sun and the shadows fall behind you.