India Funds Buying Gold and Silver

India broadens rules for $385 billion stock funds to add GOLD AND SILVER. 

India’s market regulator has allowed the country’s $385 billion actively managed equity funds to park more of their money in gold and silver, giving them greater flexibility at a time when global demand for hard assets is rising. Under revised rules by the Securities and Exchange Board of India, stock funds can invest the remainder of their portfolios — up to 35% of their assets — in gold and silver instruments, as well as in units of infrastructure investment trusts.

India pension funds buy gold

New structural demand from pension funds.

India Silver Collateral

India is turning silver into money. 

Record India Gold Imports

Indians like to buy cheap gold. 

India buying the dip in gold

Is this the gold bottom? 

Indian oil demand slowing

Indian oil demand is slowing.

India cuts gold import tax

India cuts gold import tax. A pretty big move. 

India gold demand Vs. gold imports

There is some correlation between India gold demand and gold imports. 

China Gold ETF

Chinese like gold. 

Indians as well.

Energy consumption Vs. GDP per capita

As India and China develop their economies, electricity consumption will increase. 

India Gold Imports Vs. India Agriculture Exports

When Indians earn lots of money from agriculture, they buy lots of gold.

India Gold Imports Surge 471% in March 2021

India imports surged to 160 tonnes in March 2021. This is a record compared to the last two years.

Remember this post.

India cuts gold import tax from 12.5% to 7.5%

India cut gold import tax from 12.5% to 7.5% in February. This will greatly increase gold demand from India.

 

Indian gold jewelry demand in Singapore

A lot of Indians are buying gold in Singapore.

China physical gold and silver demand is going through the roof

Even though the West is not interested in gold and silver (look at the low gold/silver premiums), China is buying like there is no tomorrow.

The evidence for this can be found in the SGE numbers. The latest month December 2018, SGE withdrawals were 44.5 tonnes per week, which is historically pretty high.

Also the silver and gold premiums in Shanghai are very high. Notice that the gold price is the same as in 2017, but the premium is much higher now. So that could mean gold is breaking out, because of Chinese buying.

 

 

India is also importing a lot of silver.

India improving current account deficit supports gold price

India's current account deficit has been improving, making the odds of a tax reduction from 10% to 2% more likely. This will spur more Indian demand in gold in the future.