• 6 minutes U.S. Shale Oil Debt: Deep the Denial
  • 12 minutes Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 17 minutes WTI @ $75.75, headed for $64 - 67
  • 2 hours Trump vs. MbS
  • 3 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 20 mins Why I Think Natural Gas is the Logical Future of Energy
  • 1 hour Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 6 hours Get on Those Bicycles to Save the World
  • 1 day The Dirt on Clean Electric Cars
  • 1 day Owning stocks long-term low risk?
  • 12 hours Can “Renewables” Dent the World’s need for Electricity?
  • 1 hour A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 15 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 3 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 6 hours Can the World Survive without Saudi Oil?
  • 12 hours Satellite Moons to Replace Streetlamps?!
Dave Forest

Dave Forest

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

More Info

Trending Discussions

Unexpected Development In India Could Hammer Gold Demand

Here’s an unexpected twist to the ongoing gold market saga in India.

Bullion donations from god.

It sounds fanciful, but the world’s number two gold consumer is looking to donations from religious institutions to lower its bullion import demand. And insiders say the plan might just work.

The scheme revolves around massive gold holdings accumulated by India’s Hindu temples. Which the government now wants to access, according to reports from local press this week. Related: Huge 100 Billion Barrel Oil Discovery Near London

Reports suggested officials will launch a program in May where temples can loan their gold to the central government. In exchange, the lenders will receive interest payments on the gold holdings they deliver.

The government then plans to melt down the received gold and lend it out again to local users.

The critical point is the effect this plan could have on India’s gold imports. Effectively reducing the need for foreign bullion in meeting local demand. With some estimates suggesting that temples could hold enough gold to cut imports by 25% — or about 200 to 250 tons per year. Related: What’s Really Behind The U.S Crude Oil Build

That would be a substantial loss of demand for the global gold market. And a big negative for prices.

Of course, it still remains to be seen whether the plan will succeed in attracting gold loans — especially given widespread distrust of the banking system in India.

A similar gold loan scheme with temples was actually tried before, in 1999. And failed almost completely — because very few gold holders chose to sign onto the plan. Related: Who Will Control The World’s Water: Governments Or Corporations?

Sources say the difference this time around will be higher interest rates offered by the government. With suggestions that payments may range as high as 5% — as compared to just 1% previously.

There are still a lot of questions, but this bold plan is a big item to keep an eye on for gold investors. Watch for more details on the scheme coming in May.

Here’s to taking one to the temple,
Dave Forest

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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