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 Replies: 14 / Views: 4,897 |
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Pillar of the Community
United States
808 Posts |
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Pillar of the Community
United States
1454 Posts |
A country getting rid of a tax? How refreshing. I'm very surprised, though. India is still pretty much a third world country with major infrastructure issues. I wonder how this affect markets? Could be substantial, I'd think. I've heard that India is the biggest gold buyer in the world.
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Valued Member
United States
264 Posts |
May it be noted that India buys mostly gold jewelry and not bullion.
The jewelry is worn by women and men as a way of showing family prosperity. A woman's ability to get a favorable marriage to the man of her choice is largely dependent on the amount of gold she wears.
I steer clear of the gold markets during the 4th Qtr of every year because this is their buying season.
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Pillar of the Community
 United States
808 Posts |
I thought it was worth posting because, like traevin said, India is the largest consumer of gold in the world.
I guess I had two questions about all of this:
1) Now that the 1% on branded and 3% on unbranded gold jewelry is gone, would there be a meaningful bump up in global gold demand?
2) The other question involved why have such a tax in the first place? Culturally, gold is very important across the entire economic spectrum in India. As I vaguely recall reading elsewhere, even the very poor will seek to own a little gold. It's simply that important. As a result, this tax policy affected the entire Indian population which seems to have been a politically risky move. I wonder if someone in government thought there was too many rupees moving into gold?
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Pillar of the Community
United States
648 Posts |
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Pillar of the Community
United States
2661 Posts |
Gold or Silver, I have noticed over the last year that a good indicator of a downward swing in prices is APMEX sales. If APMEX puts either one on sale for Only XXX over spot, the price falls shortly after. I have not however nailed down a good upward indicator as of yet. |
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Pillar of the Community
United States
3670 Posts |
Great call as you nailed that Tim, as APMEX is listing 24 hour sales 6 or 7 times per week, the most recent just out today about Pamp 1 oz. gold bars selling for only 35 bucks over spot, not bad at all.... I think silver an gold have a bright future in the LONG run, but I am afraid for now we are gonna see more drops, which just opens up mine an all our purchasing possibilities for gold silver platinum an palladium.... Edited by Silverhawk74
05/07/2012 6:21 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
According to Warren Buffett he is against gold, finds it not that useful, and always has been. Ah, but according to his father, Howard Buffet (deceased), the liberty of a people is tied to whether or not their nation has a gold standard. Howard Buffet was a business man, investor, and 4-term congressman. He knew a thing or two about business AND politics. His essay on this subject is most enlightening and should be read by everyone. It is easily found via a Google search and is very well worth the several minutes it takes to read. Howard definitely did not agree with his son and for some excellent reasons. My thought is that Buffet is a stock guy and that stock guys dislike PMs because they get no income from them. When their clients take money from their stock accounts to buy PMs, that money rarely, if ever, returns to the account where they can profit from it. This is why the stock guys do not like PMs in general and gold in particular. It is also significant that the performance of gold for the past decade has quite thoroughly whipped the performance of Berhshire Hathaway stock. It is likely that this drubbing also rubs Buffet the wrong way. Well, too bad, guys!  |
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Pillar of the Community
United States
2661 Posts |
Quote:
I think silver an gold have a bright future in the LONG run, but I am afraid for now we are gonna see more drops, which just opens up mine an all our purchasing possibilities for gold silver platinum an palladium....
 And I buy every once of silver I find around town. The lower the price goes, the better. I find that some panic selling has started to set in and people are dumping ASE's now and I am picking those up at a couple of local Pawn brokers for around $1 over spot, they are eager to rid themselves of it quickly also  . Gold on the other hand, I will only buy if it has a numismatic value attached. |
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Pillar of the Community
Canada
3692 Posts |
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Bedrock of the Community
United States
10038 Posts |
Warren Buffett -
So just how much credibility do we give to this guy's opinions compared to what thousands of years of recorded history has shown about gold?
How much squash could a Sasquatch squash if a Sasquatch would squash squash? Download and read: Grading the graders Costly TPG ineptitude and No FG Kennedy halveshttps://ln5.sync.com/dl/7ca91bdd0/w...i3b-rbj9fir2 |
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Valued Member
United States
196 Posts |
earle unfortunately a lot more than one man deserves. But I would say in some way or another his word does have an impact no matter how minimal.
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Pillar of the Community
United States
3670 Posts |
I think as well with Warren as Ed's post clearly shows, as where we all start out is most key, an no doubt being Howard Buffet's child brought with it opportunity not many could be fortunate enough to realize an experience....
Now, that does not mean if I would have been his child or any of us, that we would have continued to make the family business prosper shall we say as Buffet junior has, but no doubt it would have been a huge advantage an no doubt any one with half a lick of sense could figure out some way to make that type of capitol work for them, say anything from selling manure to funeral plots, to water bottles, to gold an silver. He just chose the stock market, an with big gains like it produces, also can come huge risks as well....
Gold or Pm's is not for everybody, and never will be which leaves more for us all whenever the scales really tip in the supply an demand favor of Pm's....
It is just as sure to happen eventually, just as the wise folk who first began to roll search for pre 64 silver as early as 1965 knew it way back then. Many of which are long gone now an never even got to see the climb back to close to fifty per oz. of last year....
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Pillar of the Community
United States
1454 Posts |
The stock market is predicated on the continuous flow of massive amounts of readily available fiat currency, which is the antithesis to PMs, in a way. Central banks facilitated a ridiculous influx of dollars in 2009 to prop up a moribund, at best, stock market that was in free fall at the time. Without that infusion of dollars, I believe there is a good chance that the big banks we know today would not have survived the housing crisis. Stocks are Buffet's lifeblood. I think the seer of Omaha's opinion is a bit biased.
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Pillar of the Community
United States
4008 Posts |
Quote:
So just how much credibility do we give to this guy's opinions compared to what thousands of years of recorded history has shown about gold? As much as he deserves... which is to say not much. Just because a guy is really good at X does not make him good at Y. I would not go to David Morgan or Jim Sinclair for stock advice, so why should I go to Buffet for PM advice? Unfortunately, those who are in awe of Buffet for his stock picking talents do not seem to understand this. Shrug. |
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Replies: 14 / Views: 4,897 |
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Posted 05/07/2012 12:38 pm
