Record gold prices could turn Indian buyers onto silver

[ryshay]

http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=91133&sn=Detail# (http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=91133&sn=Detail)
Record gold prices could turn Indian buyers onto silver

Current indicators suggest demand for gold in India is of late being driven by investment sentiment, where price is a factor
Author: Lewa Pardomuan (Reuters)
Posted: Thursday , 22 Oct 2009


HONG KONG (Reuters) - "Record high gold prices above $1,000 an ounce may encourage more Indian buyers to turn to much cheaper silver, a senior trade official from the world's top bullion consuming country said on Thursday.
"Even today the rural Indian invests more into silver than gold. Higher prices of gold imply even the lower middle class population shifting to silver more compared to gold," said Anjani Sinha, president of the Indian Bullion Market Association, which represents about 10,000 jewellers.
While silver has seen a much sharper price rise in the last 12 months, gaining 86% versus a 45% gain for gold, at $17.67 an ounce it is still nearly a fifth below its record high of March last year..."

Hey India! Ghandi loved silver, so should you!
Get it while it's cheap!

Silver...the other white metal.

[Argyria]

It may cause them to shift some, but it bears pointing out they have already been heavily into silver for a very long time.

[akak]

Yes, of course, there will be a temporary downturn in investment buying in India due to the new higher price of gold, as has happened in the past, and then they will eventually adjust and accept the new higher prices, as everyone else will and has in the past, and as the Indians have in the past as well. What is new here?

For a second, I thought this article was written by Jon Nadler, according to whom all gold investment buying in India (if not everywhere else as well) should have plummeted and then halted completely at the $500 level several years ago. This is such a blinkered "analysis" that it is insulting to the intelligence to even stoop to address it, as indeed any halfway bright 12 year-old could do.

I would like those who, like Jon Nadler, keep preaching doom and gloom about the rising price of gold to tell us at just what magic price all investment purchasing of gold is going to suddenly and permanently all but cease. For Nadler, it was $500, then $650, then $800, then $900, then $1000 --- and he was wrong every step of the way. His ignorance and gross misunderstanding of even basic economics are matched only by his arrogance and allegiance to the anti-gold forces.

[Katwoman]

India's gold buying season just ended and buying was actually up since last year so as of today this article is pure speculation. What if the Rupee rallies to new highs? Do you think they will stop buying gold then? As already pointed out they have been buying silver for years so unless gold goes to $2000 USD per ounce and the Rupee fails to go up relative to the USD I do no expect to see a significant reduction in their gold buying pattern despite all the speculation to the contrary.

[MasterQ]

It isn't speculation when even your top firms in the US are also saying gold is too expensive right now to own in their portfolio.

I am not documenting every person on bloomberg and their firm, just watch for 1 solid week and you'll see what I'm saying.

The one recent firm said they hope to have 10% of their portfolio in physical gold but at the current price levels it just isn't feasible.

What is meant by this firm and many others?

Maybe in conjunction with what Kat says, there has been a record turn out this month with the price of gold and its purchase. (trying to not twist your words kat but that is what it sounded like to me)

The truth is, as I have been trying to plaster reason all over this month, that the run up was pure emotion, too fast and too soon.

Historically we are supposed to have a pullback in October and it just didn't want to listen. We had a hiccup at 15.85 in a pre-market setup and then it shot up like a rocket.

I really am not surprised at how tired gold and silver have been showing in their numbers. As I have been trying to point out in my other thread we were in a range bind, showed weakness and tiredness, shifted to lower range bind and as of this morning are barely popping their heads above the water line of 17.70.

The 9 day has solidified over the last 6 days as this "water line". The metals are tired my friends and because we have been in this consolidation phase it is either trying to regain some strength on the ground just above the 18 day or it is time take a small breather.

As pointed out in a recent bloomberg article, with the price of the euro and the exchange rate with the dollar, oil should have been $88/barrel by now. Why hasn't this happened? With so many forum posters here calling for $18 then why haven't we hit it in the last WEEK?

When things are much worse now as is the common phrase then there should be no excuse after our run up to 17.92 to not just keep going. What is the matter with all of you cheerleaders? Keep buying at this level! Topple this thing! Get it to 19! What are you waiting for? 18.50 is looking acheivable, get a move on! Who is stopping you? Did you run out of money? Are you just sitting on your asses waiting for someone else to drive this price? Some world calamity your 8-ball has shown you time and time again yet it hasn't happened? Or is this the calm before the storm?

Great...now I'm tired... :P

See ya'll after the close today.

-Q

[ccjoe]

It isn't speculation when even your top firms in the US are also saying gold is too expensive right now to own in their portfolio.

I am not documenting every person on bloomberg and their firm, just watch for 1 solid week and you'll see what I'm saying.

The one recent firm said they hope to have 10% of their portfolio in physical gold but at the current price levels it just isn't feasible.

What is meant by this firm and many others?

Maybe in conjunction with what Kat says, there has been a record turn out this month with the price of gold and its purchase. (trying to not twist your words kat but that is what it sounded like to me)

The truth is, as I have been trying to plaster reason all over this month, that the run up was pure emotion, too fast and too soon.

Historically we are supposed to have a pullback in October and it just didn't want to listen. We had a hiccup at 15.85 in a pre-market setup and then it shot up like a rocket.

I really am not surprised at how tired gold and silver have been showing in their numbers. As I have been trying to point out in my other thread we were in a range bind, showed weakness and tiredness, shifted to lower range bind and as of this morning are barely popping their heads above the water line of 17.70.

The 9 day has solidified over the last 6 days as this "water line". The metals are tired my friends and because we have been in this consolidation phase it is either trying to regain some strength on the ground just above the 18 day or it is time take a small breather.

As pointed out in a recent bloomberg article, with the price of the euro and the exchange rate with the dollar, oil should have been $88/barrel by now. Why hasn't this happened? With so many forum posters here calling for $18 then why haven't we hit it in the last WEEK?

When things are much worse now as is the common phrase then there should be no excuse after our run up to 17.92 to not just keep going. What is the matter with all of you cheerleaders? Keep buying at this level! Topple this thing! Get it to 19! What are you waiting for? 18.50 is looking acheivable, get a move on! Who is stopping you? Did you run out of money? Are you just sitting on your asses waiting for someone else to drive this price? Some world calamity your 8-ball has shown you time and time again yet it hasn't happened? Or is this the calm before the storm?

Great...now I'm tired... :P

See ya'll after the close today.

-Q

Q-From the No.1 cheerleader here when YOU said a couple months back for me to study India.
That's like me telling you to study TA.
As I've been studying India since I gave a lecture on India on 10/15/1968> a beautiful "Indian summer day" of 80 degrees at the University of Dayton, INDIANS will be buying millions of ozs of silver SOON as they won't be able to afford gold.. MY prediction MONTHS ago. NOW look at the title of this thread.
It's wonderful that Kitty and YOU are always saying how right you are, but I thought for ONE time I would throw this in so maybe for ONE time you will see that others know what the hell they're talking about too.
I fully expect NO response or apologies as there never has been.

[ccjoe]

Isn't this interesting http://www.kitco.com/market/
In the 5 minutes since my post, silver jumped .10!
Q--Like Maple making fun of me for seeing the Indians and Chinese buying everything at the Mass mall this past labor, it must be difficult for you to NOT see things that road wise people like me DO see and admit it?
Hopefully I'll always give others credit like I do with you Q and Kitty, and even Maple a couple days back. Life is so much better when we let the spotlight shine on others and not just ourselves.
joe

[ccjoe]

Now to be fair and talk it and not just walk it.
Q --Your prior posts were spot on, as the Indians and Chinese are sleeping now and could NOT be buying silver Your TA and Kitty's are correct:)
Good job and keep it up as your input is invaluable here.