Comment: No reason? Humbug!

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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.