• 4 minutes Get First Access To The Oilprice App!
  • 7 minutes Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 2 hours Renewables in US Set for Fast Growth
  • 32 mins Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 8 hours Oceans "Under Fire" Of Plastic Trash
  • 14 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 13 hours Is Natural Gas Renewable? I say yes it is.
  • 13 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 15 hours Making Fun of EV Owners: ICE-ing Trend?
  • 55 mins Socialists want to exorcise the O&G demon by 2030
  • 5 hours Cheermongering about O&G in 2019
  • 4 hours North Sea Rocks Could Store Months Of Renewable Energy
  • 24 hours Algorithms Taking Over Oil Fields
  • 1 day Europe Slipping into Recession?
  • 1 day Nuclear Power Can Be Green – But At A Price
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

These New Numbers Show A Major Threat To Gold Is Disappearing

A lot of eyes in the global gold sector on India the last few months. Looking to see what effect radical new plans in the bullion business here might have on demand in the world’s top-consuming nation.

The biggest change going in India’s gold market has been the so-called “gold monetization scheme”. Where the government has been encouraging private citizens to deposit bullion with central banks, in interest-bearing accounts. Related: Analysts See 2016 Oil Price Rise, While Traders Bet On Fall

The idea for the government is to then loan out the gold to jewelers and other end users. Thus reducing India’s overall gold import demand. (For a good prompt on some of the economic problems with this plan, see here from Zero Hedge.)

But logical or not, it appears that India’s gold holders have made up their minds on the gold scheme.

And they’re saying no. Related: Why The Oil Price Crash Is Killing The NHL

That’s judging from reports from India’s Economic Affairs Secretary, Shaktikanta Das. Who said on social media Saturday that the gold monetization scheme has attracted 900 kg of gold to date.

That comes with the scheme having been in effect since November 5 — suggesting that the government is collecting less than 400 kg per month.

That would imply the scheme could attract something on the order of 5 tonnes of gold yearly, at current deposit rates. Equating to just 0.5 percent of India’s estimated gold demand of approximately 1,000 tonnes per year. Related: Oil Markets Are Balancing Faster Than IEA Would Have Us Believe

Such numbers are likely not enough to move the dial on local or international prices. Suggesting this potential threat to the global gold market may pass with little effect.

India’s government is trying to tweak the scheme to make it more attractive and accessible to investors. Watch to see if the deposit numbers depart from the current trend — a big increase will be needed to make a difference.

Here’s to plunking it down

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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