This post was recently published on ZYX Short Sell Change
In the year 2011-12 , India imported 1,067 tonnes of gold worth about $60 billion.
In the April-June quarter of 2012-13 fiscal year, gold imports had contracted by 18.4 per cent year-on-year to about $13 billion.
India’s imports of gold are likely to fall further for three reasons:
- Indian currency rupee is strengthening.
- Inflation in India is likely to come under control.
- Gold imports have inverse correlation to amount of Monsoon rains.
One of the biggest argument North American momo gold crowd advances is increasing gold imports by India. However, the data does not support the argument.
There is a lot of air under gold and silver prices. Let us see how much more the momo crowd can inflate this balloon before it bursts.
