Skip to comments.Gold, silver coin supply runs dry during Indian festival
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.
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.
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.
They are out of gold.
Silver is actually going up at a higher percentage rate and is available.
Still, ya cant eat it.
Actually it is Nichol.
Boy has that gone up in price.
Where can I get some?
5 years ago this was $7.50
Call your broker.
I think food and energy commodities are going to hit the roof very soon.
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
Costco is now selling survival food.
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.
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.
“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.
I have found this website to be a very useful source of information on the economy, gold, and silver.
“I jokingly said “food and ammo”.”
What do you mean? It sounds like serious, level headed advice, not joking.
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?
Yeah, I started hunkering down over a year ago.
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