RBI had eased some rules by allowing seven trading houses to import Gold. But this only resulted in a sharp jump in overseas buying despite a record import duty of 10 percent. The aftermath of this sharp jump was a phenomenal increase of trade deficit. India’s trade deficit for September widened to $14.25 billion mainly due to rise in Gold imports.
Another matter that the government is going to oversee is an issue raised by the bullion industry. The traders have complained that some star traders are refraining from selling imported gold to them for further exports. The 80:20 rule says that importers should re-export 20% of their commodity shipments before the rest can be distributed in India for commercial use. But the star trading firms’s actions act as a hindrance for this re-export of Gold.
Gold is being sold at the lowest price ever’- a headline like this is really awe inspiring and incredible. One may instantly forced to read it at least twice to see if some error happened. But more incredible is the news is true.
Solferino Gold Mine/Colombia Reserva De Oro announced that it is selling gold at $650 a troy oz, the lowest price in the world today for the world’s most influential precious metal. Solferino Gold Mine/Colombia Reserva De Oro will be initially mining 150,000 oz of gold, and is earmarking 40,000 oz of it to be sold at $650 an oz. Considering that gold closed yesterday at $1246, the possibility of getting it at $650/oz is unheard of. It is by far the lowest price in the world for gold today.
By charging $650/oz for gold, Solferino is giving accredited investors a once-in-a-lifetime opportunity to virtually almost double the amount of gold they would normally get in today’s market. Imagine getting 200 oz to sock away when planning on getting 100 at most. The last time gold was $650 was in November of 2006. That was eight years ago.