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Government mobilises 6.4 tonne gold under monetisation scheme

Goldhedge

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all that glitters....

Government mobilises 6.4 tonne gold under monetisation scheme

By PTI | Updated: Mar 10, 2017


NEW DELHI: The government has collected 6.4 tonnes of gold under the scheme for monetising the metal, Parliament was informed today.

Launched in November 2015, the scheme intends to mobilise idle gold held by households and institutions so that the wealth can be put to productive use.

The scheme also intends to reduce the current account deficit by lowering country's reliance on gold imports to meet the domestic demand, Minister of State for Finance Arun Ram Meghwal sai ..

Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
 

Son of Gloin

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How do they "mobilize idle gold held by households"? Does that mean confiscate? That's what it sounds like to me.
 

Bottom Feeder

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Mobilized... hummm. Now that's an interesting term.

I think I might keep my eye on this word for further developments.

BF
 

Montecristo

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I have a customer who is Indian. He's been talking aboutthis for a while. The plan, as he described it to me, is to set up a way that Indians can place their gold with he Government and borrow funds against it to invest. The goal is to take that money that Indians have tied up in gold that they have just sitting there and pump it into the active economy.

It's a move right out of the Keynesian play book.. Savings (the gold Indians have stashed for emergency) are bad for the economy and debt (borrow on your assets) is good.
 

Goldhedge

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If you don't hold it...
 

ttazzman

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Lets
Think

the population of India holds some 20,000 tonnes

I am going to scare them

by saying

Boo

YGBSM
doubt your going to scare them.......but if indian government scemes to gain possession of all that physical gold ....a BOO from them might scare a lot of people
 

Joe King

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I have a customer who is Indian. He's been talking aboutthis for a while. The plan, as he described it to me, is to set up a way that Indians can place their gold with he Government and borrow funds against it to invest. The goal is to take that money that Indians have tied up in gold that they have just sitting there and pump it into the active economy.

It's a move right out of the Keynesian play book.. Savings (the gold Indians have stashed for emergency) are bad for the economy and debt (borrow on your assets) is good.
Or in other words, time to mortgage the farm.
 

Ragnarok

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#12
"Idle" gold. What a moronic concept. That's what gold does best, conserve value through (interesting) time(s)!

"Brokers and traders will show you, "turn your gold into wealth", "put it to productive use, Trade It"! "Sell your gold and buy it again, many times". "Do this and find the value lost from your youth"! But I say, spend your time in the company of truly wealthy ones, see how they make gold lie very still!"
-Another

R.
 

Irons

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Are there no boats in India?
 

Son of Gloin

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dacrunch

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Are there no boats in India?
They have hundreds (thousands) of "Temples" to "Obscure Gods", with TONS of Gold (& jewels) in their basements... Some they've even forgotten about! (article a few years back).
 

Ragnarok

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I have a customer who is Indian. He's been talking aboutthis for a while. The plan, as he described it to me, is to set up a way that Indians can place their gold with he Government and borrow funds against it to invest. The goal is to take that money that Indians have tied up in gold that they have just sitting there and pump it into the active economy.
But can they buy it back, or is it lost to them for good?

R.
 

ttazzman

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Seems like to me once the government has a cla
But can they buy it back, or is it lost to them for good?

R.
supposed to be collateral (so returnable).......but my conspiracy radar would suspect differently....it seems very convienent for the govenment should they need it to have access to a "free" gold supply
 

Montecristo

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But can they buy it back, or is it lost to them for good?

R.
Seems like to me once the government has a cla


supposed to be collateral (so returnable).......but my conspiracy radar would suspect differently....it seems very convienent for the govenment should they need it to have access to a "free" gold supply
[]
The plan was/is that when people give their gold to the gov't and borrow against it, the gov't would in turn lease the gold out to jewelers to put back into the market. As far as I know India doesn't have any gold mines so they import tons and tons of gold throwing off their trade balance.
Money leaves India to import bullion so jewelers can turn it into jewelry which Indians buy and stash at home. It's a problem for their economy/money velocity as seen by the gov't. So the gov't plan is to recirculate the gold already in the country.

It sounds an awful lot to me like the gov't wants to set up a fractional reserve lending system with the gold their citizens have worked so hard to accumulate for security.
 

latemetal

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#20
Well we Americans gave our government our gold, see how well that worked for us....
 

madhu

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#21
I have a customer who is Indian. He's been talking aboutthis for a while. The plan, as he described it to me, is to set up a way that Indians can place their gold with he Government and borrow funds against it to invest. The goal is to take that money that Indians have tied up in gold that they have just sitting there and pump it into the active economy.

It's a move right out of the Keynesian play book.. Savings (the gold Indians have stashed for emergency) are bad for the economy and debt (borrow on your assets) is good.
The government assays it makes sure its real gold and then they melt it and when you want it back they give you gold covered tungsten. No one trusts Mr Modi, he is called Feku, meaning trickster
 

ttazzman

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It sounds an awful lot to me like the gov't wants to set up a fractional reserve lending system with the gold their citizens have worked so hard to accumulate for security.

I would call that a Bullseye Bingo statement there exactly my thoughts.......Fractionalize the hell outa it and keep debasing the currency.....trade them bad money for good money...