India to buy Iranian Oil with Gold Payments

Kal Gronvall gandsilver@gmail.com
9:19 AM (1 hour ago)

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Greetings:

In order to bypass the US and EU sanctions on Iranian oil, India intends to buy oil from Iran with gold. In addition, China, Russian and other nations will use their own currencies to buy oil from Iran, abandoning the dollar in the process. The death of the dollar as the reserve world currency is in the works.

http://www.debka.com/article/21673/

India to pay gold instead of dollars for Iranian oil. Oil and gold markets stunned

WSJ: India Spot Gold, Silver Hit Record High

Gold imports by India

Jan. 12 (Bloomberg) -- Gold imports by India, the biggest bullion consumer, likely reached a record last year driven by investment demand, according to the World Gold Council.Purchases were about 800 metric tons, compared with 557 tons in 2009, Ajay Mitra, managing director for India and the Middle East at the producer-funded group, said today in a phone interview from Dubai.Imports at that level “would be the highest for India in its history,” he said. The group hasn’t released final data for last year. Purchases in 2010 may exceed 750 tons, Mitra said Nov. 17. The Bombay Bullion Association said Jan. 3 imports probably totaled 700 tons in 2010.Gold for immediate delivery rallied 30 percent last year to reach a record $1,431.25 an ounce on Dec. 7 as investors bought the metal as a protector of wealth. Demand for bullion as an investment in India surged 73 percent in the year ended Sept. 30, according to World Gold Council data. Purchases by the Asian country this year will remain “strong,” said Mitra.“Our assessment is demand will continue to be strong,” he said. “Price is no longer a factor.”February-delivery futures on the Multi Commodity Exchange of India Ltd. was little changed at 20,455 rupees ($454) per 10 grams in Mumbai at 2:27 p.m. Prices reached an all-time high of 20,924 rupees on Dec. 7. Gold for immediate delivery rose 0.3 percent to $1,385.95 an ounce.Investment demand for gold in India grew faster than the 62 percent gain in jewelry demand in the same period, according council data.“It’s been demand driven with investment in mind,” Mitra said. “While jewelry is a form in which a lot of consumers do buy in India, the core proposition really is security for the future, which is the investment angle for buying into gold.”--Editors: Ravil Shirodkar, Richard Dobson

Premiums for gold bars jump to 2-year high, Chinese buy

http://in.reuters.com/article/idINIndia-54066920110111

Gold up on dollar weakness, Asian buying - Reuters

http://in.reuters.com/article/idINTRE6BF5L920101228
The gold-silver ratio, used to measure how many ounces of silver is used to buy an ounce of gold, dropped to 47.2, near its 46-month low of 47.1 hit last week.

India gold ETF volume in Nov more than doubles on yr - Reuters

World Gold Council Releases New Report on Gold Market in India

Key findings from this report include the following:
• In 2009, total Indian gold demand reached US$19 billion, or Rs974 billion, which accounts for 15% of the global gold market.
• Over the past ten years, the value of gold demand in India has increased at an average rate of 13% per year, outpacing the country’s real GDP, inflation and population growth by 6%, 8% and 12% respectively.
• The country currently has one of the highest saving rates in the world, estimated at around 30% of total income, of which 10% is already invested in gold.
• Based on WGC estimates, the nation owns over 18,000 tonnes of above ground gold stocks worth approximately US$800 billion at today’s gold price and representing at least 11% of global stock.
• This is equivalent to nearly half an ounce of gold ownership per capita, a figure which is significantly below consumption in western markets, representing scope for additional future growth. gold stocks worth approximately US$800 billion at today’s gold price and representing at least 11% of global stock.




The full report can be downloaded by registering with the Gold Council here.