by Chris Powell, GATA:
Dear Friend of GATA and Gold:
News reports tonight suggest that the Indian government’s crackdown on gold is not only failing in India but prompting an explosion of gold imports into neighboring countries, presumably to facilitate smuggling into India but causing concern among government officials in those neighboring countries about their own potential imbalance in trade.
Of course those concerns are bogus, insofar as any country exchanging paper or electronic money for metal is getting the better of the deal — the gold will last, the paper and electrons will devalue. Indians are showing their silly government that they prefer gold to the rupee as currency, and the government’s restrictions on the import of gold may inspire similar preferences among the neighbors.
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