What are the government remedies to protect the status quo from their citizens taking precautions to safeguard the economic welfare of themselves and families without depending on the government?
Not surprisingly, the reader will discover the government, admittedly, recognizes the urgency to get the physical gold out of the hands of private citizens ('consumers'). The methods to be employed? Paper substitutes! We believe China's creation of the Shanghai Gold Exchange, under Rothschild banking supervision, is China's anticipatory move to deflect its own citizens from physical to paper. The Chinese have a greater affinity for silver as money.
Let's watch this story unfold, and LEARN from it. The scheming of India's central bank is no different from all the others! The US president can deploy an Executive Order still on the books to take control of all personal gold held by Americans.
India is crucial. Not only does India have the longest experience (millennial) with physical gold as money, but Indian citizens hold more gold than Ft. Knox (supposedly), and US citizens combined! (Click on the link to the left to learn more of their fascinating history)
Governments in the forms they've taken today, be they socialist/fascist/mercantilist, are the enforcement agents to cover the backs of the banking cartel that controls them.
Are you beginning to see now how the United Nations and its armies fit into the grand design?
India's Reserve bank looking to put idle household gold to better use
In a bid to temper imports of the yellow metal, the country is considering alternative financial routes to help bring out the gold currently sitting in Indian households.
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Posted: Friday , 13 Jul 2012
MUMBAI (MINEWEB) -
The Reserve Bank of India is looking to mobilise the country's idle gold deposits. The apex bank is mulling ways other than direct curbs on imports of gold to reduce the current account deficit.
With gold imports contributing substantially to India's current account deficit, a bank instituted panel is looking into the aspects of devising some alternative routes.
Anand Sinha, deputy governor of the Reserve Bank of India (RBI) said the bank is considering financial instruments that mimic the returns on gold.
"Gold imports have been a substantial part of the current account deficit. Therefore, it is being looked at what best can be done. Import is one aspect, the other aspect is that the gold that already exists in the country can be brought out to satisfy the demand by devising financial instruments which can mimic the returns on gold,'' Sinha told mediapersons.
The idea is to put the idle gold to productive use, said Sinha.
The RBI has been contemplating measures for some time now to ensure the country consumes less physical gold, since the nation's craze for the yellow metal is putting India's external trade at risk.
India imported $45 billion worth of gold in 2011-12, an increase of 3% year on year although physical imports fell 17% to 854 tonnes from 1,034 tonnes due to high international prices which was amplified by the weak Indian rupee.
Analysts say gold imports further declined as the government stepped up measures to control the precious metal's flow into the country.
During the March quarter, gold imports are estimated to have fallen 68% to a mere 90 tonnes, compared with 283 tonnes in the corresponding quarter a year ago.
The country's CAD, which is the difference between total imports and transfers and total exports, widened to the highest ever level to 4.5% of GDP at $21.7 billion in the January to March period of 2011-12.
To ensure that India's estimated 18,000 plus tonnes of gold held by consumers for the past several years moves out of households, the government has been deliberating various options.
Union Finance Minister Pranab Mukherjee, while presenting the annual budget for 2012-13 in March, said that gold imports should be restricted to control the swelling current account deficit. Following that, the RBI tightened guidelines for gold loan companies.
The apex bank has also set up a working Group, headed by K U B Rao (a senior RBI official) to examine the linkage between gold imports and pledging of jewellery with gold loan companies like Muthoot Finance and Manappuram Finance that have witnessed enormous growth in the past few years.
In a Financial Stability Report, the RBI said that banks' import of gold coins for retail sale to households has risen from just 1% of total imports by banks in 2009-10 to 3.8% in 2011-12. It expressed concerns over the issue as households investing in the metal could reduce the availability of funds for the financial sector and thus shrink economic growth.
RBI said as much as 23% of all gold imported is for investment purposes in India and said even its use in jewellery at 75% has an investment element for households.
Traders and analysts said it is difficult to guess the type of financial instruments that RBI will introduce to match the returns on gold investments. Some said that the apex bank could look to strengthen financial products such as e-gold, gold futures and gold exchange traded funds or inflation indexed bonds to curb import of physical gold.
Source: Mineweb
