India’s Central Bank, The Reserve Bank of India, seeks to restrict bullion imports because of the strain it is putting on their current account deficit. India is the largest importer of gold and more than half of it is used for jewelry.
The fall in the price of gold has triggered a new run on physical gold that shows no sign of abating. Record amounts of money have exited ‘paper,’ i.e. futures and ETFs, and headed straight to the bank or the mint to be exchanged for coins and bullion bars.
So what's your gold or silver really worth today? Like everything else, it's worth the most that somebody else will pay you for it, right here and now. That's the simple truth, as last month's crash proved all too plainly.
Physical demand for coins and bars internationally continues and is the strongest since the immediate aftermath of the Lehman Brothers collapse on September 15, 2008, and the consequent global financial crisis.
According to a local Hong Kong newspaper, the largest fall in gold prices in 30 years prompted the Mainland Chinese tourists to buy about 60 tonnes of gold in Hong Kong during the three-day Labor Day holiday.