India gold price at all-time high! Late last month the gold price in Indian Rupee hit a new all time high. The gold price in India has exploded 30% in only the last 2 months!
Why? The rupee, falling by 15% against the dollar during the same time period. It may even collapse.
India’s 1.25 billion people, the second most populous country, buy gold for both savings and security. Now, capital is leaving the country, Indian investors are fleeing the stock market and dumping bonds, and the only asset that has protected capital has been gold. In fact, holders of gold have prospered in an environment where there are few safe assets.
The Indian government has attempted to make gold ownership difficult and expensive for Indian buyers by restricting imports and increasing taxes. Yet, that doesn’t seem to be working.
“Why should I care?” you ask. See the chart below and then read the closing commentary.
All Things Considered – John’s Commentary:
Here’s why you should care… The same thing could happen here!
India’s currency tanked. They are the second largest country in the world (we’re the third). They have a growing middle class and a large percentage of the population have college and advanced degrees. The government has instilled new taxes on gold, added duties, allowed the currency to devalue, and yet the demand has hardly been impacted.
The same thing could happen here. All that is needed is a dollar devaluation.
Action to take: Don’t try to time the market. Prices, especially silver, are very low. Get a minimum of 10%, if not 20% of your net worth into physical precious metals. Take delivery if you are able. If you are concerned about safe storage, please call me.
Some content excerpted from Sprott Asset Management and Ed Steer’s Gold & Silver Daily
