by Stewart Thomson, Gold Seek:
1. I’m getting a lot of emails to do more macro analysis of the gold market, and the time is ripe to do so.
2. “We need to continue to push for long-term capital inflows and therefore the FDI policy has to undergo a revamp…. We need to move in this direction quickly and it needs to be a paradigm shift in how we look at FDI.” – Arvind Mayaram, Economic Affairs Secretary of India, June 17, 2013, Bloomberg News.
3. FDI refers to “foreign direct investment in India”. The Indian government charges an 8% duty on gold that is imported into the country. There is also a 4% sales tax.
4. In the short term, the Indian government is applying a lot of pressure to its gold-loving citizens, but they are also working quickly to dramatically increase foreign investment in the country. I’m 99% sure that once FDI increases, exports will boom, the rupee will stabilize, and the government will reduce the import duties on gold.
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