• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 1 hour Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 49 mins Is $60/Bbl WTI still considered a break even for Shale Oil
  • 6 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 3 hours Theresa May to Step Down
  • 2 hours IMO 2020 could create fierce competition for scarce water resources
  • 5 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 2 hours IMO2020 To scrub or not to scrub
  • 2 hours Devastating Sanctions: Iran and Venezuela hurting
  • 7 hours Total nonsense in climate debate
  • 11 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 4 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 4 hours Apple Boycott in China
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow

Breaking News:

Tesla Shares Rebound On Leaked Musk Email

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

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

Update: How India's New Gold Schemes Are Hitting The Market

India’s recent gold monetization scheme is one of the biggest events for the global gold market in years. And we’re now three weeks into the program — and getting an idea of the effects it might have for gold demand and prices.

News last week suggests that the monetization program itself — where citizens deposit gold at banks to earn interest — has seen a bumpy launch.

According to local press, the amount of gold deposited so far has been a meager 400 grams (just under 13 ounces). Suggesting that gold holders are not rushing to give up their bullion. Related: Oil Prices Down As Storage Keeps On Filling Up

News this week however, attributed much of that underperformance to “procedural glitches” with the gold scheme.

That’s because the rules currently state that deposits must be made at “collection and purity testing centres”, which take up the gold on behalf of banks. However, reports suggest that most of these centers are not equipped to handle large amounts of gold coming in — which had led to problems for depositors.

The government announced this week that it will now do away with the collection centers. A move aimed at streamlining the process, and increasing the number of deposits. Related: Why The Future For Energy Storage Just Got Brighter

And the program could get a big boost from one largest holders of the gold in the country. The Lord Sri Venkateswara Temple, which holds a massive trove of bullion — and is considering becoming the “single largest depositor of gold” under the monetization scheme, according to reports this week.

The Temple reportedly has 5.5 tonnes of gold already allocated to deposits. Suggesting this could be a major source of supply to boost the program.

Another part of India’s new gold program seems to be getting more traction: Sovereign Gold Bonds. With the government saying this week it’s had to postpone the issuance of these bonds by four days, due to a “large number of applications”. Related: Glencore Wades Into Libyan Oil Fight

The gold bonds also have potential to reduce gold demand — because they allow investors to buy a paper equivalent of bullion, rather than physical supply.

Watch for stats the next several weeks on how many of these bonds get sold — and for a final decision from big players like the Sri Venkateswara Temple, which could make or break the gold monetization program.

Here’s to golden times

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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