Very quietly, India has made several moves in the precious metals market which has escaped mainstream attention.
Last year, India was one of the major importers of silver, at 6000 tons. I am not able to verify who it is that who imported so much, but I would not rule out the Adani Ambani combine since they have massive ( as in really massive) solar energy projects coming up in Rajasthan, and solar panels need lots of silver. Street demand in india has also stayed strong.
There is talk of a new BRICS currency backed by 40 percent gold, which China, Russia and India are working on.
Very recently the Indian government allowed silver to be used as collateral for loans from banks. Sometime in the last couple of months it also allowed the Provident Funds to take exposure to precious metals
Yesterday, the Indian government has allowed equity mutual funds to invest in precious metals from out of their 35 percent non equity allocation.
The RBI, along with some other central banks, has been buying gold in the last few years, and reducing its dependence on US treasuries.
Just yesterday, SEBI has directed Indian mutual funds to stop using London prices for valuing gold and silver, and use Indian street prices instead.
About a year or two ago, our finance minister Madam Sitaram stopped issuance of new Sovereign Gold Bonds.
Meanwhile, pressure in the silver paper markets of the West, Comex and LBMA, is building up with participants demanding delivery, exposing major Western banks who are sitting on massive short positions. This will lead to a short squeeze which is unravelling as we speak, spiking the price of silver.
Meanwhile, silver prices in Shanghai are at a ten dollar plus premium consistently for more than two months now. This will ensure that metal leaves the west and travels east.
China, which refines sixty percent of the world's silver ( though it produces say about twenty percent only), has implemented export controls on silver starting January first of this year.
Saudi Arabia has added silver to its national reserves. Other countries will follow.
We already know the troubles that the dollar is facing that is threatening its status as a reserve currency. The dollar is in terminal decline.
Now, connect all the dots.
India, Russia, China and other countries are slowly preparing for collapse of the dollar, and the emergence of a new world currency order.
Gold will go up in price since it will be the bedrock of any new financial system as it has been for five thousand years, till the US withdrawing from the gold standard in 1971 delinked all world currencies from gold.
Silver, which has always been a monetary metal for the last five thousand years, is all set to take up that role once again.
The countrues are quietly positioning themselves for it.
What are you, as an individual, doing?
Load up on gold and silver, for if you miss this bus, you may regret it for the rest of your life.
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