• 9 hours Saudi Fund Buys Stake in Hollywood Talent Agency
  • 14 hours Putin Is A New Russian Stalin - Victory For The Next 6 Years
  • 4 days Russian hackers targeted American energy grid
  • 3 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 9 hours G20 Rejects Calls for Cryptocurrency Regulation
  • 5 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 19 mins Self-Driving Cars' First Fatality
  • 6 hours Trump Bans Venezuelan National Cryptocurrency
  • 5 hours Is Trump Harming Oil Industry?
  • 8 hours Volkswagen To Announce $340 Million Tennessee Investment To Build New SUV For U.S. Market
  • 9 hours Africa Is The New Land Of Opportunity For Investors
  • 3 days HAPPY RIG COUNT DAY!!
  • 13 hours Miners against Government: Largest Miners In Congo Quit Chamber Of Commerce Amid Growing Tax Dispute
  • 3 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 3 days Spotify to file $1 billion IPO
  • 5 hours Tillerson just sacked ... how will market react?
Alt Text

What’s Driving Oil Prices Back Up?

Oil prices started the week…

Alt Text

Alberta Ready To Fight For Trans Mountain Oil Pipeline

The Alberta parliament has voted…

Alt Text

Natural Gas Is Under Attack

Natural gas has gained a…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Is India Seriously Considering A Gold Import Ban?

Gold India

It's been a wild year for India's gold importers. With the government moving on a variety of initiatives to reduce shipments into the country -- resulting in a 59% fall in imports for the fiscal year to date.

And news this week suggests imports could be about to fall even further.

Local press in India reported Sunday that some observers believe a big step is coming in import policy. Potentially including a complete ban on new shipments of gold into the country.

That revelation came from prominent industry body Indian Bullion & Jewellers Association (IBJA). Which sent a text message to its 2,500 members in the gold sales business across India, saying that new monetary policy from the government may be a set-up for the import ban.

The text message noted, "We hear from certain circles of this possibility (gold import ban and advancement of deposit date) though nothing official is out yet."

The IBJA went on to note that India's government recently made a decision to pull 500 and 1,000 rupee bank notes ($7.50 and $15) off the market. Announcing on November 8 that such small bills will only be accepted until the end of December -- after which they will be worthless.

That move is aimed at combating proceeds from illegal industries, often kept in cash. But it's reportedly having an unexpected consequence -- a rush to buy gold.

Holders of "black money" small bills have apparently been trying to wash their cash by trading it for bullion. With reports suggesting gold sellers have been reaping big profits from this desperation -- charging up to 67% premiums to market price for gold when buyers pay in small bills. Related: The Catastrophic Consequences Of Peak Oil Demand

That in turn has caused the government to crack down on jewellers. With the IBJA noting that up to 600 of its members have been asked to provide detailed information on recent sales.

As the IBJA explained, "We are aware that certain members of the trade are importing gold only to sell the same against old notes at a hefty premium. So, if the government wants to stop this malpractice it might consider a ban on imports."

Such a move would obviously be a huge development for the global gold market. Watch for any official moves from India's government between now and the end of the year.

Here's to a black out.

By Dave Forest

More Top Reads From Oilprice.com:

Back to homepage

Trending Discussions

Leave a comment
  • Finn on November 17 2016 said:
    They just need to ask themselves if they want to see the gold imports or not....?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News