Wednesday, November 4, 2009
Why India?
Gold prices hit new high on Indian deal with IMF
India buys 200 tonnes of gold from the IMF. Or India sells dollars worth 200 tonnes of gold. But why does India get this and not China? India has potential inflation problems specifically hitting food prices, not assets, and a culture of physical gold holding. Food inflation is a killer for currency confidence, which is why I think Merv is pumping assets instead. Browns gold sale would be worth today 8 billion sterling. He got 2 billion. I still think gold collapses next year along with everything else, but if everybody gets gold fever then, I suppose not.
Posted by stillthinking @ 04:19 PM (856 views)
4 thoughts on “Why India?”
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alan says:
To check current gold prices, Link:
http://www.kitco.com/charts/livegold.html
I think 200 tonnes of gold would have been a good buy for the UK, but Westminster could hardly buy gold without reminding ourselves of Crash Gordon’s sell-off. Doh!
little professor says:
China is also diversifying away from the dollar in a big way. They have bought reserves of oil, coal, and metals, as well as buying stakes in mining companies. They are just a little more savvy than to buy 200 tonnes of gold in one single transaction.
crunchy says:
2. little professor
Still confused? Bless.
hpwatcher says:
2. little professor
Still confused? Bless.
Exactly what point are you making?