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Indian Central banks buys gold for no reason

"To the outside world, it signals a show of strength and display of quiet confidence," said Himadri Bhattacharya, executive vice-president at Tata Capital in Mumbai, India.

But the former RBI official doesn't believe the gold purchase, worth US$6.7 billion, was the outcome of any strategic thinking or vision on the part of the authorities.

"It just happened," said Bhattacharya, who has done extensive research on gold for the World Gold Council.

There you have it: The authorities behind the central bank of India just bought $6.7 billion dollars worth of gold for no reason. It was just random. Right.


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Next week we will buy 7 billion in Tandoor Chicken

For Freedom!

For Freedom!
The World is my country, all mankind is my brethren, to do good is my religion.

Private Held Gold in Inda - 25 to 50,000 tons.

While there are no authentic estimates on how much gold is in the country, Bhattacharya said gold held by Indian households and other private groups would be close to 25,000 tonnes.

"But I must point out that some estimates put the number as high as 50,000 tonnes," he said in an email to The Canadian Press.

That could be worth between $850 billion and $1.7 trillion.

Ron Paul's Convention Speech

SteveMT's picture

No reason? Humbug!

Their "no reason" investment just generated a 5.55% return in two weeks.
That is a good bit of money for a $6.7B investment!

Previous Update: Tuesday, November 3, 2009 - GOLD ABOVE $US 1080

Story at the time of the purchase:

So, why did India do it?

According to the Financial Times, “the country’s finance minister warned the economies of the US and Europe had collapsed.”

India’s central bank is the tenth largest gold holdings among central banks, with the new buy. But it probably isn’t finished yet. Gold makes up just six per cent of India’s foreign exchange reserves. There’s plenty of room for that to grow.
So then, could it be the dollar?

Dollar woes?

The Indian Finance Minister rejected any suggestion that the country had lost confidence in the US currency. Most of India’s $285 billion in reserves is held in US Treasury bills. He said that the gold operation was just a bit of foreign exchange asset management.


We will give you the Reason Later

for now we are trying to not bump up the average gold price this week because it affects the next 200 tons we are going to buy from the IMF.

Per ZeroHedge

Tiny Mauritius Tells US To Shove Its Dollar, Buys 2 Metric Tons Of Gold From IMF At $1,115 An Ounce



Only the acceptance of the truth can defeat systemic evil.

Randomly at record high prices

If I were the head of the Indian bank I'd be upset if the "random" event just happened to be at record high prices.

Fortunately the purchase is already worth more.

Go figure a "random" purchase paying dividends already.

How random!

There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.
-Professor Bernardo de la Paz, The Moon is a Harsh Mistress
Robert A. Heinlein

History does not long entrust the care of freedom to the weak or the timid.
Dwight D. Eisenhower

nice one.

yeah, it happens all the time. People just accidently throw billions at gold. haha

Right! Just random!

A coincidence!

Don't read anything into it!

Now go back to "Dancing With the Stars" say the central bankers.

Sheeples being led to the slaughter.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul