Gold imports into India jumped for the first time in seven months in July as jewelers replenished stocks.
Indian gold purchases surged 44.2% year-on-year to 75 tons.
India ranks as the number two consumer of gold in the world. According to a Reuters report, increased demand, “could support global prices,” which are struggling to hold ground in a strong dollar environment.
Does gold still matter?
A lot of people dismiss gold and precious metals as irrelevant to the world monetary system. But how can money be irrelevant?
Liechtenstein-based Incrementum AG managing partner Ronald-Peter Stöferle joined Mises Institute president Jeff Deist to talk about all things gold, including why it is still money and an important part of the global financial system.
Gold has had a tough few months. A dollar rally and rising interest rates have weighed on the yellow metal, driving the price down nearly 8% over the last three months. But as Mike Maharrey pointed out on last week’s Friday Gold Wrap podcast, gold is on sale right now and that means a buying opportunity. Smart shoppers shop sales. Now may the be the perfect time to buy gold.
Mike isn’t the only one who sees opportunity in the gold market right now. Some people in the mainstream see it too. In fact, a CNBC Trading Nations headline yesterday declared that even though gold is having an “ugly year,” it has led investors to a buying opportunity.
The second quarter GDP number released Friday came in at 4.1%. It represents the fastest rate of growth since 2014. President Trump called the number “amazing,” bragging that, “We’ve accomplished an economic turnaround of historic proportions.”
Peter Schiff wasn’t quite as impressed. In his latest podcast, he said this “peak GDP” is an aberration and it’s setting the stage for a major economic fail.
The International Monetary Fund dissed the dollar in its annual External Sector Report, saying the greenback is overvalued.
According to a Reuters report, the IMF report also said that “nearly half of global current account balances are now excessive, adding to growth risks and trade tensions.”
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
I was on vacation last week, so there wasn’t any Fun on Friday. But I am back, and I have some really fantastic news for you – especially if you live in Venezuela. And even if you don’t reside in that South American hell-hole, you’ll want to keep reading because the ramifications here are huugggee!
Venezuela President Nicolas Maduro fixed the country’s hyperinflation problem.
Could China be secretly pumping up its gold reserves?
Officially, the People’s Bank of China hasn’t added any gold to its hoard since October 2016. But some analysts don’t think the Chinese have stopped accumulating gold. They think they’ve just gone silent.
Last month, we reported that the global yield curve inverted, signaling the possibility of a looming recession. While narrowing to levels not seen since right before the 2008 financial crisis, the yield curve has not inverted in the US. In his most recent podcast, Peter Schiff said he doesn’t think it’s going to happen. He said we may even see a steepening yield curve in the coming months. But this is not because there’s not going to be a recession.
Analysts expect demand for gold in India to surge in the second half of the year thanks to a good outlook for farmers.
A good start to the rainy season along with higher minimum support (MSP) for summer crops should boost the gold trade, according to a report in the Economic Times of India. Analysts expect a 25% increase in gold demand compared to the second half of last year.
