India central bank prohibits gold sales

[Engineer]

http://www.zerohedge.com/news/2013-06-06/india-central-bank-prohibits-sales-gold-coins

Two weeks ago, with its current account getting crushed by relentless gold imports, India's finance minister Chidambaram literally begged the people to stop buying gold. Judging by the popular response, the ongoing physical shortage, and last night's increase in Indian gold import duties from 6% to 8%, appealing to people's feeling when it comes to the choice of fiat vs physical, has failed miserably. So the FinMin Chidambaram has decided to escalate. Per Reuters: "The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit." Well, if there ever was one sure way to send demand for any product through the roof (guns, ammo, etc), it is for the government to prohibit its outright sale. What follows next, almost without fail, is a panicked, chaotic buying scramble.

[blackrabbit]

Very interesting. Maybe he just knows that the price is going down under $1000 and so like a good banker he is trying to help his fellow countrymen from losing money.

[Engineer]

Very interesting. Maybe he just knows that the price is going down under $1000 and so like a good banker he is trying to help his fellow countrymen from losing money.

It's going all the way to $100...and a one-ounce maple will only be worth $2. I'm a nice guy, though, and will pay full face value.

[InfleXion]

... and a gallon of gas will be 2 cents and a loaf of bread will only cost you a smile.