In addition to its crackdown on cash, India stepped up its attack on gold. The aim is to cut down on gold imports. India does that in a roundabout way, by cracking down on exports.
Bloomberg reports India Bans Gold Exports Above 22 Carats to Plug Trade Loopholes.
India has banned the export of gold products with purity above 22 carats with immediate effect, a move that the industry sees as a way of curbing irregularities in the trade.
The Directorate General of Foreign Trade issued a notice limiting shipments of jewelry, coins and medallions to 22 carats or below, without giving a reason.
“The move may be to reduce round-tripping of jewelry and coins, wherein a trader can import the gold coins or jewelry at a lower import tax because of trade agreements with some countries and re-export the same stock without any value addition,” said Ketan Shroff, joint secretary of the India Bullion and Jewellers Association Ltd. The exporters would benefit from not paying the 10 percent import tax currently levied on most inbound shipments of gold, he said.
Indian imports are said to have more than doubled last month from a year ago partly due to a jump in purchases from South Korea, with which India has a free-trade agreement. Importers have previously used free-trade treaties with countries such as Thailand and Indonesia to escape the import duty.
Round-Trip Nonsense
The stated round-trip reason is nonsense. If a vendor imported gold then immediately exported it, there would be no gain to the vendor other than random price fluctuations.
Prior to this announcement, a vendor could purchase gold and hold it until he had a profit, betting either on a price rise in gold, or a plunge in the Indian Rupee.
The new rule is not a crackdown on gold exports, it’s a crackdown on gold period. India wants to punish those who trade in gold.
Mike “Mish” Shedlock
Without stated valid reason!
The real reason is to CONTROL ALL transactions by and the wealth of Indians.
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Hey Mish did you see this quote from Anthony Levandowski (started self-driving tech company Otto).
Pointing out very concisely the issues they are having ( which I have pointed out several times previously )
” lidar doesn’t penetrate intrusions so it does not penetrate rain, fog, dust and snow, whereas a radar does. Radar also bounces and lidar doesn’t bounce very well.
You can’t do the “look in front of the car in front of you” thing.
So I think the obvious thing is to use radar and not use lidar.”
….. VC money that is all it is about VC misleading investors.
Don’t fall for the hype, do some reading !
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Look this is coming – Period
You are the one who needs some reading – I addressed all of these issues before
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On self driving sensors, does human sight see through all these things that LIDAR can’t? NO. Does it means humans can’t drive in these conditions? NO. Anything a human can do, so can a camera or LIDAR which is just a camera with an active light source. Adding RADAR simply makes the machine that much more capable than humans. Mish you are right, self driving is coming. Government has stepped aside on this one. Where are all the regulatory hurdles?? Where is all the typical government caution? GONE. They have opened the roads for this tech and are siding with it in court cases when it turns out to be less than perfect. Government sees the capability as a huge productivity increase which is true. Remember, for right or wrong, Greenspan’s big worry right now is that lack of productivity increases will drive inflation. In other words, the M2 money supply is growing at 7% or more (Greenspan’s words) while productivity is not keeping up. Something has to make up for boomers coming out of the workforce and for millennials not filling their shoes. Automation is the hoped answer to keeping the debt Ponzi on track for a few years more.
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Captain Dave, You have it correct.
If the sensors cannot operate a car safely, it’s doubtful humans can. Look at all the traffic accidents where there is snow on the highways. Automated cars will do much, much better
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Ultra wide band.
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The trend is visible for all to see. Governments and Central Banks will want to ban physical currency (including gold and silver) to reduce tax evasion, crime, terrorism, counterfeiting etc. This is why so many are turning to crypto currencies which are more difficult for governments to control, as an alternative medium of exchange (and store of wealth). As a result, there is currently a lot of speculation and volatility in crypto.
I have no idea how long this trend will take to play out; perhaps 20 years?
In the meantime, it “might” be prudent for individuals to add crypto to their diversified position.
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There is no way I am paying £3202 for some binary on tcp/ip unless I can spend it at Asda.
This reminds of flying imaginary airplanes and waiting to pilot for the payoff in the 80’s.
This is a bubble if I have ever seen one full of panicked folks wanting to move their wealth around. Back it with gold and it would be the default currency in a very short time.
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…or own real assets, and just not participate in, “tax evasion, crime, terrorism, counterfeiting [,sic] etc.”
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That is my preferred course wrld. I mention crypto more for those who are in a situation where they feel they “might” have to flee their current location and relocate on short notice.
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“want to ban physical currency (including gold and silver) to reduce tax evasion, crime, terrorism, counterfeiting etc.”
Don’t forget a biggie – so one cannot avoid bail-ins and negative interest rates – and, to a lesser extent, so they can “turn off” your ability to support yourself with a few keystrokes if you misbehave.
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I agree. It would make it far easier to implement negative rates when all your national currency is digital.
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No, governments have only one motive–squeezing more taxes out of the population to pay for their wild spending and, of course, grossly inflated pensions.
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“No, governments have only one motive”
No, that may be a primary motive, but not the only motive.
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“This is why so many are turning to crypto currencies which are more difficult for governments to control, as an alternative medium of exchange (and store of wealth).”
All governments have to do is ban transactions in it with stiff fines and/or jail time for those caught using it. It won’t eliminate it but no reputable business will touch it and that will greatly limit its utility, same as if they banned anything else.
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Given proper anonymity, there is no available record of who paid what to whom.
Whipping out your smartphone to execute a face to face crypto transaction with an undercover agent may get you in trouble. But, as Silk Road has shown, that’s not how things are properly done anymore….
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Agreed. Though it’s difficult to predict the future, at this point in time, crypto is definitely one more viable alternative for many who are seeking them. As usual, human ingenuity continues to solve problems as they appear.
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There’s no one in real authority calling governments out for this.
It’s in plain sight, without agreement requested from the masses.
Once achieved, what’s next?
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Totalitarianism.
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Unfortunately it is worse than totalitarianism. Dictate is being used as the answer, but the problem is the void of power, that power not being government but the cohesion of understanding of a nation, which has been replaced by misguided experimental philosophy and policy.
Welcome to your substitute, he/she will take over just as soon as found, but in the meantime Babel needs building.
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Bankruptcy and starvation.
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“There’s no one in real authority calling governments out for this.”
Because it is to THEIR advantage that such things be implemented, the same reason that no one calls out the garbage economic theories and models used to run the world through the artificial manipulation of interest rates, theories and models which are regularly and justifiably mocked on sites like this. Maybe some day more people will wake up and realize that when it comes to the status quo flow of VAST sums of money, THEY are not in charge via the mere act of voting, but I doubt it.
Yeah, proles, we’ll allow you you to continue to rage about mostly inconsequential social issues which have no real impact on that status quo flow and allow you to vote accordingly and maybe even give you your way to hide the reality that when it comes to questions related to OUR roundabout access to YOUR pocketbook, YOU are not in control. This is possible because most of those around you are oblivious as has been the case throughout history.
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Not sure how it works in India, in the middle east gold is often sold as jewellery by weight alone, though don’t know the common K.
I wonder if this law counts for physical transfers only? For bullion they could just weld a piece of copper onto the end of the bar lol.
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In India, when it comes to jewellery, gold’s weight + jewellery making charges (sometimes as high as 20-25%) is typical. Also many retail Jewellery chains in India have shops in middle east too!
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There has always been a lot of trade with India in the middle east, east Africa also has a strong history to that regard. Both Arabs and Indians still value gold highly, Saudi is on a gold standard still I think. Of the souks I remember textile, spices and gold were the most obvious, the first two most clearly Indian (and electronics). Maybe the gold souk pre-incorporated a % for workmanship into the price by weight, but what I remember is the price was by weight, the most simple to more complex jewellery charged the same. Maybe buyers were more interested in having an investment that passed as personal object, I don’t know… the gold souk in Dubai is a large and often busy place for example. Just highlights the difference in societies… not going to find a group of relatively unguarded shops like this in the west:
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This is bullshit
The Saudi currency is the rial, whichgold standard here is pegged to the USD, no
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I predict the black market growing and getting stronger.
I just can’t say why…. /s
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The black market? Use the word slavery as colour is considered racist, unless you meant political use of race, when it isn’t… unless it’s white on white, of course…or did you mean the oil trade?
White on white…. got some curious hunh?
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The term “black market” has long been in common parlance to mean trade outside the view of the legal authorities (likely “illegal” trade.) The “black” is an allusion to the hidden nature of the transactions (i,e. out of the light or “underground”) rather than race. The term “gray market”, also in common parlance, means a questionable market, as in “gray area” of legality. It has nothing to do with the skin color of the people who engage in it.
Similarly, “dark internet” or “dark web”… hidden or hard to find web sites, known to only participating users by actual IP addresses rather than URLs. Nothing to do with the race of the users.
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That was my understanding.
There was at one point in time a market in black people, which was what I was referring to.
If you will excuse the poetic licence of free thought, you will find no offence is or was meant to people of any race, but maybe those who use race as part of political agenda of non race. Sure some might take offence, the words may be read in various ways, I hope they provide a reflection to and of the reader, and something to ponder for those who are willing to read more deeply.
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Mish… anything regarding Indian imports and exports – dont use your rational mind. Indian companies use all manner of convoluted 10-step strategies to escape or minimize taxes and duties and this may be 1 step in that.
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Country XXXX bans bitcoins “without a valid reason”
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(That would be a tinnie of Castlemaine XXXX to poms and yanks)
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Bitgold + Dark Web + ubiquitous wifi enabled smartphones for p2p interfacing back to Web.
Possibly Gov’s would stand a real hard time against that. They might just be encouraging such through their actions.
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Have to ask Mish… the one “problem” with Bitgold in that might be transactions are registered by their server in name of user, if that is under an unfriendly jurisdiction, permanent access might be demanded on grounds of financial oversight etc.?
Would Bitgold move to Switzerland or similar Mish?
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I do not know if Bitgold can easily move
I do not know if they would provide transaction data to unfriendly governments on request.
In the US, we have to file forms for foreign deposits. It is questionable what constitutes “deposits”: but I file paperwork every year for my gold holdings at GoldMoney.
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It is a hard topic, and I think even Crypto currency would be accessible for interruption by legislation if chosen… start slapping heavy fines for its use or possession and watch what would happen.
Transaction data on request… I was really looking at being legally obliged, as in the government of where it is based threatening to close down the business. Whether Bitgold would challenge that is a question that cannot be answered until the circumstance arose, and depending on a lot of factors.
I was just thinking ahead more than anything.
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I suppose with Bitgold at least an individual should have the physical gold in storage and accessible in another jurisdiction if legislation closes down on an individual or Bitgold in say the US.
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I was thinking more for the criminal world and black economy. No way paperwork would ever be on the table in the first place.
2 levels. The big boys that can afford the set-up and another for cash in hand small jobs.
The big boys may already be looking that way. It could make sense using block chain with gold ownership transfers if the vault is clandestine and some Dark Web used as the communications interface for traffic.
If it was already being done we wouldn’t know.
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If the authorities think it is already being done for large scale criminal work, expect that to be used as an excuse to come down on legitimate gold holdings too. Any excuse as we enter the next phase of monetary control.
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If Ahmed the drug dealer isn’t reporting his opium and heroin shipments, why is he suddenly going to report gold shipments?
And I am sure the Pakistani terrorists will continue to smuggle guns and explosives into India, but they will carefully and truthfully fill out customs forms for any gold they ship out.
India is a country with over 1 billion potential smugglers and less than 1 million customs agents who’s home addresses are well known to the smugglers.
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Gold in control of the human mind, that shiny piece of metal is more important Thant a 2000 year old redwood tree.with these kind of values is any wonder about the world chaos.
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People are more concerned at being enslaved than a tree, sure. Who will protect a tree from people if they are not free to do so?
Maybe you think progressive social politics is the installation of high morals, not their usurper?
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beautifully said
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O/T ZH had an interesting post on “pseudo news” today … that makes me wonder on how to read the spillover of Charlottesville into UK/international politics… is a new political theme being created?
http://m.huffpost.com/uk/entry/uk_599416a1e4b04b193361b234
Or
http://www.independent.co.uk/voices/theresa-may-donald-trump-refuse-to-condemn-sajid-javid-twitter-britain-prime-minister-step-down-a7896381.html
For example.
A lot of hostility around.
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The steps the Indian government has taken are exactly those you would take if you are planning to force all gold holders to turn in their gold for rupees. I think that is coming within 2 years in India, and probably a lot of the developing world.
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Gold will be moved back and forth across the parts of the border that the government barely, if at all, controls. In the process enriching the jihadis operating there. Until those guys can finally afford obtaining a nuke. Then, bye-bye to Modi and all his retarded laws.
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Hard to achieve if you see how much gold is in jewellery, wedding gifts etc. Coins ok but trying to remove it from Indian society is a losing mission.
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India just announced that thousands of villages near the border can soon expect higher wages for “hiking guides” and sherpas that take packages across the borders.
Modi is a poster child for a much bigger black market
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