Monday, March 21, 2011

Indian Physical Gold Buyers Still Reluctant, Gold At Discount Shows Up

According to a Reuters report webbed by, Indian gold traders are still reluctant to book deals at current prices. Also, gold is appearing on the street at a discount - suggesting selling pressure has developed.
"Secondary gold is available in the market at lower prices, they are available at a discount of 200 rupees (per 10 grams)," said a dealer with a state-[run] bullion importing bank in Mumbai.
That's a development that previously went unmentioned. If secondary gold is selling below official gold, then some holders want to get out of the metal. That pressure doesn't bode well for India as a perpetual source of support for the metal.

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