India to Ban Gold Importation; Bitcoin Price Rally, Market Shock Imminent
Gold, which most investors and traders consider as the world’s safe haven asset, may be banned by India in the upcoming months. India is one of the largest gold importers around the world, purchasing around 700 tons of gold per year. Experts state that the demand for gold in India is higher than most assets and reserve currencies, arguably making gold the most valuable asset in the country. However, reports suggest that the government may be planning a ban on the importation of gold, as gold premiums reached two year highs this month. Chirag Thakkar, a director with Amrapali Group noted:....
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Last week, Cointelegraph reported that the Indian government had planned to ban the importation of gold and impose heavy taxes on gold investors. On Dec. 1, China also restricted the importation of gold in order to prevent capital leaving the country. Over the past few months, the Chinese central bank and government have imposed heavy financial regulations for capital controls, cracking down on Wealth Management Products (WMPs), foreign investment and the transfer of money. The latest strategy implemented to prevent the devaluation of yuan is the restriction of the importation of gold. The....
Indian mainstream media outlets, including The Times of India and India Today, have begun to extensively cover Bitcoin amid the ongoing crackdown on gold holdings and importation. Some news networks have also expressed their optimism towards the increasing demand for Bitcoin as it is helping the government realize its failing initiative. To the credit of the Indian government, the confiscation, restriction and ban on the importation of gold and the demonetization of banknotes were imposed for the purpose of decreasing criminal activities within India. The initial thought process behind....
Indian Prime Minister Narendra Modi’s demonetization of 500 and 1,000 rupee banknotes has thrown India’s economy and financial systems into turmoil. Local residents now struggle to obtain cash to support and finance their day-to-day living. The government’s restriction on gold importation is also affecting the general population, as 78% of Indian....
Amid the government’s war against cash, local authorities have begun to regulate and restrict gold, a store of value that has been the foundation of the Indian culture and society. Gold holders are being taxed and threatened, as the Indian government continues to fight “black money.” However, one major issue persists in the government’s impractical strategy to eliminate illicit transfer of funds. That is, regardless of the intentions of the Indian government and Prime Minister Narendra Modi, it is the general population or 99% of citizens and residents that are being negatively affected by....
Holger Zschaepitz, best selling financial author of “A book on states’ addictiveness to debt” and senior editor at Welt, recently discovered an intriguing relationship between gold and bitcoin: when gold plummets in value, the price of bitcoin surges. Based on this trend, he noted that bitcoin is beginning to be recognized as the new global safe haven....