Gold Premiums Rise In India As Demand Surges

  • Posted Tuesday, August 26, 2014 at 09:14 PM

TANGIBLE INVESTMENTS - Los Angeles - by James O'Dell - Gold and Silver prices turned higher on Tuesday with Gold gaining 0.57 percent to trade at $1,283.80 an ounce, on short covering and bargain hunting after a lull in the dollar rally, while Silver added 0.26 percent to trade at $19.45 an ounce. “Gold may be picking up a little bit of bargain-hunting interest,” said James Moore, of FastMarkets Ltd., today by phone.Ukraine and the Middle East “are helping keep Gold underpinned,” he added.

The growing global economic and geopolitical uncertainty, together with the need for further accommodation in the euro zone will most likely increase demand for safe-havens, the safest of course being Gold. The European Central Bank (ECB) is expected to do more than provide  lip-service to handle the euro zone's problems of growth and deflation at its policy meeting next week.
 
ECB President, Mario Draghi,  hinted at Jackson Hole on Friday that more accommodation will be forthcoming, but he's been saying the same thing since he promised two-years ago to do “whatever it takes” to preserve the euro. When Draghi first made the ‘whatever it takes’ pledge, euro zone inflation was running right around 2.5 percent, today, however, inflation is a mere 0.4 percent. From the perspective of a central banker, deflation is viewed as the greatest threat of all.
 
Meanwhile, Gold demand is reportedly picking up steam in India, with festival and wedding seasons near, and a better than expected monsoon season boosting rural demand. Gold premiums in India have risen to between $10 and $13 an ounce compared with zero just a month ago. Reports indicate that India is on pace to import around 700 tons of Gold in 2014, not counting the unrecorded amounts smuggled into the country (estimated at more than 250 tons) to avoid the massive import tariffs.
 
It's important to protect your hard earned wealth during these times of economic and geopolitical uncertainty, and at Tangible Investments (learn about us here), it doesn't matter whether you're new to precious metals or a seasoned veteran, you will always be dealing with top industry experts. Take a moment and browse our vast selection of valuable collectibles, then call Toll Free 1.800.741.5014 today and let the helpful staff at Tangible Investments assist you in your next purchase or sale. Have you claimed your FREE COIN yet?

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