India might be making gold go up!

[highroller4321]

"Indian Prime Minister Narendra Modi has announced that the existing 500 and 1,000 rupee banknotes will be withdrawn from the financial system overnight."

http://www.bbc.com/news/business-37906742


With so much cash floating around and now the 2 biggest notes going obsolete it might strive some massive gold buying in India!

Just a thought...

[tomfernandez]

Thanks, good article.

[Copper Catcher]

New 500 and 2,000 rupee denomination notes will be issued to replace those removed from circulation.....Not sure it will make gold go up....they are just swapping currency.

[highroller4321]

New 500 and 2,000 rupee denomination notes will be issued to replace those removed from circulation.....Not sure it will make gold go up....they are just swapping currency.

The only way to swap currency is at the bank. If you have a lot of black market cash you can't just go to the bank with it....

You can buy gold and then resell it once the new notes are issued.

[beauanderos]

Talking to one of my Indian coworkers who has a fair amount of gold (stateside). She says she's been talking with relatives and the price has risen over there (gouging?)
from 30,000 to 50,000 rupees per (she didn't say). She's thinking she could double her money by selling the gold she has.

[beauanderos]

Talking to one of my Indian coworkers who has a fair amount of gold (stateside). She says she's been talking with relatives and the price over there has now risen (gouging?)
from 30,000 to 50,000 rupees per 10 grams. She's thinking she'll be able to double her money by selling the gold she has.

a link I found while browsing stated (as of three days ago) the price at that time had risen about 800 rupees.

This could be a real life example of how quickly markets will move once faith in the dollar is irrevocably lost.

[blackrabbit]

50,000 rupees equal about 740 dollars for 10 grams which is over $2200 an ounce of gold. I'd sell mine for that!

[beauanderos]

ok, so I just got clarification from my co-worker. The price in rupees IS because of gouging. Not due to scarcity of gold though, that's merely a medium for exchange. Apparently there
are many individuals there with very large unexplainable stashes of money that they don't want to declare. So gold sellers and currency swappers are only offering about half the value
of the old black currency when offering substitutes (gold or new currency). Some parties, desperate to remain below the radar, are accepting those offers.

[beauanderos]

http://www.acting-man.com/?p=47768 good read regarding the corruption in India

[frugalcanuck]

They love their gold there. When I was in a gold store in Southern India I watch a guy bring in a large box of large gold bracelets in and exchanged it for rupees. It was pretty neat to see happen. They know how wealth preservation works over there.

[neilgin1]

They love their gold there. When I was in a gold store in Southern India I watch a guy bring in a large box of large gold bracelets in and exchanged it for rupees. It was pretty neat to see happen. They know how wealth preservation works over there.

oh yes they do. forgive me for stating the obvious, but that culture is over 8,000 years old, and that old T-Shirt I got "Been There, Done That" (a 23 year old t-shirt, I thought it was 'cool'...then) certainly applies to the Indian sub continent. Now i'm glad I was born here, but I do admire the common sense that several of the mega large "OLD culture" nation states(China and India)...common man applies to their everyday life. what i'm trying to say is "hard money" (Au/Ag) is both respected and coveted over there.

for a few years now, I been noticing this push towards a "cashless" society.....don't know the "end game" is, but the powers that....their justification for taking large denom bills OUT of circulation is "to prevent criminal elements from operating", which makes me laff, at just the rank hypocrisy of such a statement.

But we know what we know, and I don't want to make my first post in a long spell to be a downer, so let me just conclude; hey guys! hope and pray you all are doing fine, well fed, healthy, and of some good measure of cheer, in these very very strange days.
fondly, n,

oh ps...don't know WHEN, but I still opine, Au-6,000 USD a toz/Ag- 125-300 USD a toz

[johnbrickner]

WB Neil. It's good to see you.

[TXSTARFIRE]

Welcome back neil, I was wondering when we might here from you again. The book of Revelation speaks a little about a cashless society and a one world government---NOT good.
tt

[beauanderos]

http://www.zerohedge.com/news/2016-11-16/stunning-scenes-panic-gold-price-skyrockets-india-after-currency-ban?utm_source=dlvr.it&utm_medium=twitter

[68Camaro]

OMG - that's a black swan event within that country. Horrible. Insane. What were they thinking?

When future generations look back, they will see the current demonetization as the worst event in the history of post-colonial India.

[IdahoCopper]

Makes you wonder how many dominos will topple from this.

[natsb88]

So I found out yesterday that a couple of my friends are over there right now on a delayed vacation/honeymoon. They had this all planned out long ago, just unfortunate timing.

He sent me an account of their first day there and said I could share it as long as I emphasize that the hospitality has been great. He said the rules on the currency exchange dictate that tourists get priority (except at ATMs, but most of those are out of cash), and that despite frustrated crowds and lines, people have been gracious and helpful.

We landed at Delhi airport at 2 AM or so, after a relatively easy trip that included a stop in Doha, which has an impressive airport. By the time we arrived here and cleared customs (great call with the E-Visas, since the line for regular Visas was crazy), the area with the ATMs inside the arrivals hall was closed. We decided to exchange enough USD to tip our driver and that was it, since there were massive lines at the currency exchanges and USD is our emergency fund. As we walked out of the airport, we came across an ATM that was working and had no line. A missed opportunity, we would later learn.

As soon as we landed, there was a strong scent of exhaust. Walking outside the terminal, the thick fog of PM hung in the air. Weather.com described the conditions as "Smoke." The drive from the airport was a similarly jarring experience.

After zipping past many rickshaws and massive trucks -- all sharing a small road and sharing an apparent disdain for brake lights and turn signals -- we began turning down a series of back alleys. We then arrived at our hotel. How the driver knew where to go through the maze for so long (~20 minutes or so) is a mystery. We checked in, got settled, and went to sleep at 5.

We woke up at 9 to grab breakfast and take showers, since the hot water is only on at certain times. (Showering is funny, since the bathroom is also the shower room, with two floor drains and a wall fixture.) Breakfast was quite good. When it came time to pay for it, we realized we probably needed to keep the little cash we had until we had a chance to get more. This didn't appear to be an issue.

After taking a nap, we set out to find an ATM. The bellman said to "take a few lefts and rights and wait in the long line." It was an unfortunately apt relay of our route. We went to several different banks and ATMs, all either closed or with lines hundreds long. We gave up after an hour or so.

Returning to the hotel, we called our guide who arranged for the bellman to escort us on a master plan -- exchange more USD to old INR notes at an exchange down the street and then sweet-talk our way past the line at a bank to exchange for new notes. The plan went exactly as described, but it was certainly memorable.

Once at the bank, security brought us through the horde outside and into the bank proper. After we got through the door, civilians began to push us up the line. Candidly, the hospitality is astounding.

As we moved up, the group outside grew louder as we approached the bank's closing time. Eventually, security went to lock the gate behind those inside, barring others from entering. (Not an easy task, and one security guard was locked out with the pile of people. He's presumably alive.)

Anyway, we eventually got our cash (the exchange limit of the old notes is roughly equivalent to $50 per person) primarily in INR10 notes (about $0.15 each). Security was letting large groups out every 20 minutes, so we got into the middle of the group -- since we totally could then blend in, despite being both taller and whiter than anyone in the city -- and went back into the mosh pit outside. After a brief crowdsurf (kidding), we sauntered back to our hotel and called our adventures done for now.

He hasn't taken his camera out into the crowds (yet) but sent me a link to an album and said that this is exactly what they are seeing.

[68Camaro]

I'll see if I can find the link but saw or heard a report early this morning that some Australian banks are eliminating all cash transactions.

[beauanderos]

I'll see if I can find the link but saw or heard a report early this morning that some Australian banks are eliminating all cash transactions.

http://sgtreport.com/2016/11/war-on-cash-intensifies-citibank-to-sstop-accepting-cash-at-some-branches/

[68Camaro]

Thanks

[highroller4321]

I'll see if I can find the link but saw or heard a report early this morning that some Australian banks are eliminating all cash transactions.

Thus far isn't this just a suggestion??

[68Camaro]

It's not yet a government mandate. Banks there are doing it - thus far and supposedly - on their own.

[IdahoCopper]

The prelude to the endgame.

Get all the cash deposited to the banks, then crash the banks. Bail-ins are already the first defense to save the banks. Sucks the wealth from the prols.

First step ... dump the price of silver to scare away cash.

[beauanderos]

The prelude to the endgame.

Get all the cash deposited to the banks, then crash the banks. Bail-ins are already the first defense to save the banks. Sucks the wealth from the prols.

First step ... dump the price of silver to scare away cash.

just remember...

STRONG HANS



oops.

I meant strong hands.

[wolvesdad]

Take that down or pay me a royalty. I didn't authorize the use of my image.
100-1oz Elemetal Prospectors please. I'll PM you my address.