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Gold, silver coin supply runs dry during Indian festival
International Business Times ^ | November 5, 2010 10:47 AM ED

Posted on 11/05/2010 10:05:07 PM PDT by DeaconBenjamin

Sales of precious metal coins during the festivals in India, the world's largest consumer of gold, are higher this year as compared to last year, the Times of India reports.

Many jewelers ran out of low-denomination gold and silver coins on Wednesday evening, when Dhanteras kicked off the first five days of Diwali. The coins are typically gifted during the holidays.

''Most markets are witnessing a huge crowd," Praveen Khandelwal, president of Confederation of All India Traders, told the newspaper. "Business has been much better in comparison to the past two years."

Indian demand for gold typically rises by 40 percent during this season, when Indians celebrate the festival of lights. And the belief that sales are better this year was echoed by an advocate of Indian traders.

''Business has been much better than we expected," D N Rajpal of Lajpat Nagar traders' association told the newspaper. "During the weekend, there was hardly any space to walk in the market. Even on a Wednesday, there was a huge rush on account of Dhanteras. People turned up in large numbers to purchase gold, silver and cutlery."

Physical demand for gold in India helps boost prices around the world - while most gold is still bought and stored for investment and hedging, India leads the world in consumption - and Indian buying can help American investors in gold.


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: coin; diwali; dry; festival; gold; india; indian; runs; silver; supply

1 posted on 11/05/2010 10:05:11 PM PDT by DeaconBenjamin
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To: DeaconBenjamin

Indians buy gold for traditional cultural reasons, and they were considered to be price consious shoppers of gold. In the last two years, Indian consumers would buy on the dips, but would pull back when gold was making new highs. For them to be buying furiously when gold is at an all time high this season is a new signal that Indians feel the price will not be going down. The Rupee is suffering from high inflation as well, so this may be a source of their attitude towards the gold price.


2 posted on 11/05/2010 10:13:17 PM PDT by Vince Ferrer
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To: Vince Ferrer

It’s interesting to me that they’re running out of silver as well. The people who are hoarding gold don’t seem to be hoarding silver. Traditionally, the price of gold is about 16 times the price of silver. Recently, the price of gold has been 50, 80 or even 100 times the price of silver. Something has to give. Either gold has to get cheaper or silver has to get more expensive.


3 posted on 11/05/2010 10:24:04 PM PDT by Question Liberal Authority (Worst. Post-Racial. And Post-Partisan. Agent Of Hope And Change. EVER.)
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To: Question Liberal Authority

They are out of gold.

Silver is actually going up at a higher percentage rate and is available.

Still, ya cant eat it.


4 posted on 11/05/2010 10:26:28 PM PDT by mylife (The Roar Of The Masses Could Be Farts)
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To: Question Liberal Authority
I have some Silver ammo.

Actually it is Nichol.

Boy has that gone up in price.


5 posted on 11/05/2010 10:29:59 PM PDT by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife

Where can I get some?


6 posted on 11/05/2010 10:33:20 PM PDT by STD (He walks like a he duck, he talks like a duck, yo' mama married two of the duckers, U a duck Boy!)
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To: Question Liberal Authority

5 years ago this was $7.50

http://www.auctionarms.com/closed/displayitem.cfm?itemnum=8380590.0


7 posted on 11/05/2010 10:34:52 PM PDT by mylife (The Roar Of The Masses Could Be Farts)
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To: STD

Call your broker.

I think food and energy commodities are going to hit the roof very soon.


8 posted on 11/05/2010 10:37:21 PM PDT by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife
Damn!

When Obama was elected, someone asked what they should invest in. I jokingly said "food and ammo".

Now I'm thinking I should take my incandescent light bulb hoarding scheme a bit more seriously.
9 posted on 11/05/2010 10:40:24 PM PDT by Question Liberal Authority (Worst. Post-Racial. And Post-Partisan. Agent Of Hope And Change. EVER.)
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To: Question Liberal Authority

10 posted on 11/05/2010 10:43:32 PM PDT by mylife (The Roar Of The Masses Could Be Farts)
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To: Question Liberal Authority

I saw the other day where incadinkadoo bulbs were banned in Germany, but a couple of smart fellows contracted with a chinese manufacturer and imported them as “heatballs” Personal space heaters. LoL


11 posted on 11/05/2010 10:47:27 PM PDT by mylife (The Roar Of The Masses Could Be Farts)
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Costco is now selling survival food.

http://www.costco.com/Browse/Product.aspx?Prodid=11289959


12 posted on 11/05/2010 10:56:54 PM PDT by mylife (The Roar Of The Masses Could Be Farts)
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To: Question Liberal Authority
It’s interesting to me that they’re running out of silver as well. The people who are hoarding gold don’t seem to be hoarding silver. Traditionally, the price of gold is about 16 times the price of silver. Recently, the price of gold has been 50, 80 or even 100 times the price of silver. Something has to give. Either gold has to get cheaper or silver has to get more expensive.

Unlike gold, silver has lots of industrial uses. It's a much less accurate barometer of inflation than gold is. Lousy economy = less industrial demand for silver = lower silver price in comparison to gold.

13 posted on 11/06/2010 12:32:45 AM PDT by John the Savage
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To: mylife

The world order currency will be based on the Gold Standard. This is why Obama is destroying the dollar. I had to decide to either sell my silver coin stash to get survival gear or keep it. I sold. Survival gear is cheap right now.


14 posted on 11/06/2010 3:24:48 AM PDT by screaminsunshine (the way to win this game is not to play)
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To: Vince Ferrer

“Indians buy gold for traditional cultural reasons, and they were considered to be price consious shoppers of gold.”

I’ve read that they (and their neighbors) are among the least price-conscious; after getting paid, and buying whatever necessities they need, the remainder is put into gold to preserve its value (against a falling rupee). People in that region don’t have much confidence in their paper currencies; they feel that whatever the future prospects for gold are must be better than the future prospects for the rupee.


15 posted on 11/06/2010 4:47:42 AM PDT by kearnyirish2
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To: DeaconBenjamin

I have found this website to be a very useful source of information on the economy, gold, and silver.

http://goldismoney.info/forums/


16 posted on 11/06/2010 5:50:47 AM PDT by Silver Sabre
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To: Question Liberal Authority

“I jokingly said “food and ammo”.”
/////////////////////////////////////////////////////////////

What do you mean? It sounds like serious, level headed advice, not joking.


17 posted on 11/06/2010 6:51:08 AM PDT by RipSawyer (Clem Hussein Kadiddlehopper would be a vast improvement.)
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To: mylife

http://www.youtube.com/watch?v=hWoWH8W3sVo


18 posted on 11/06/2010 6:57:17 AM PDT by RipSawyer (Clem Hussein Kadiddlehopper would be a vast improvement.)
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To: Silver Sabre

I am wondering about Numismatics.

When did we stop using silver in coins?
I prolly have $600 face value in coins here.

I wonder, are there many of them that are worth more than face value due to silver content?


19 posted on 11/06/2010 10:11:49 AM PDT by mylife (The Roar Of The Masses Could Be Farts)
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To: screaminsunshine

Yeah, I started hunkering down over a year ago.


20 posted on 11/06/2010 10:13:12 AM PDT by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife

They stopped putting silver in coins in the 1960a. Those coins with silver in them are worth at least 10x as much as their face value. Maybe close to 20x now.


21 posted on 11/06/2010 10:46:35 AM PDT by Silver Sabre
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To: mylife
When did we stop using silver in coins?

I wonder, are there many of them that are worth more than face value due to silver content?

The last year that US dimes, quarters and halves contained 90% silver was 1964. Halves from 1965-1969 contained 40% silver.

Last week I paid 18X face value for a roll of 1964 Kennedy half dollars in mint condition. The cheapest silver dollars that I have seen are 20X face value, and that is for worn coins.

22 posted on 11/06/2010 8:49:22 PM PDT by TexasRepublic (Socialism is the gospel of envy and the religion of thieves)
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