Global gold demand India overtakes China: WGC
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Indrani
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Most Asians are gold lovers, more so in the subcontinent.
This is a 7 year old blog, but one of the best about India's history with gold.
Indian Gold Reserves. Forgotten History! New Opportunity? | 2ndlook
Modern restrictions on gold exports to India
Between WWI end and the start of the WWII, it was clear that India would not stay a colony for long. Indian independence would happen sooner than later. Between 1920-40, in a series of measures, policy decisions were taken, which made Indian interests subsidiary and inferior to Western interests. Central bankers from the USA, Britain, France and Germany had many meetings to “coordinate monetary policy.” The agenda – gold flow management between themselves and an obvious understanding - don’t let Indians get the gold.
Indians were paid, with inflated and abundant silver stock, instead of gold. This silver was the same silver released by the Pittman Act – a “buffer to protect Western gold reserves against the Indian drain …” Of course, later the British Raj decided to settle Indian debts with promissory notes – and not even silver. It was this Indian ‘sacrifice’ which enabled the recovery of the West.
They (Hjalmar Schacht, Governor, Reichsbank, Charles Rist, Deputy Governor, Banque de France, Benjamin Strong, USA Federal Reserve, Montagu Norman, Bank Of England) agreed that Indian demand for gold had a “…deflationary effect on global liquidity,” therefore Indian demand for gold had to be regulated.”
in the spring of 1926, when Norman induced Strong to support him in fiercely opposing a plan of Sir Basil Blackett’s to establish a full gold-coin standard in India. Strong went to the length of traveling to England to testify against the measure, and was backed up by Andrew Mellon and aided by economists Professor Oliver M.W. Sprague of Harvard, Jacob Hollander of Johns Hopkins, and W. Randolph Burgess and Robert Warren of the New York Reserve Bank. The American experts warned that the ensuing gold drain to India would cause deflation in other countries (i.e., reveal their existing over-inflation) (from America’s Great Depression By Murray N. Rothbard, Chapter 5, The Development of the Inflation; Ludwig von Mises Institute)
The New York Times wrote how “it was most important for the Allies to agree on a policy that would prevent the Huns from capturing the very valuable raw materials which can be obtained in India, and sometimes in India alone.” Further, The New York Times went on and stated “how without Indian products there would be greater difficulty in winning the war.”
So, as the West traded, profited and consumed Indian production and goods, when it came to paying for the goods, they caviled – and ‘regulated’ Indian demand for gold – and even silver!!
This is a 7 year old blog, but one of the best about India's history with gold.
Indian Gold Reserves. Forgotten History! New Opportunity? | 2ndlook
Modern restrictions on gold exports to India
Between WWI end and the start of the WWII, it was clear that India would not stay a colony for long. Indian independence would happen sooner than later. Between 1920-40, in a series of measures, policy decisions were taken, which made Indian interests subsidiary and inferior to Western interests. Central bankers from the USA, Britain, France and Germany had many meetings to “coordinate monetary policy.” The agenda – gold flow management between themselves and an obvious understanding - don’t let Indians get the gold.
Indians were paid, with inflated and abundant silver stock, instead of gold. This silver was the same silver released by the Pittman Act – a “buffer to protect Western gold reserves against the Indian drain …” Of course, later the British Raj decided to settle Indian debts with promissory notes – and not even silver. It was this Indian ‘sacrifice’ which enabled the recovery of the West.
They (Hjalmar Schacht, Governor, Reichsbank, Charles Rist, Deputy Governor, Banque de France, Benjamin Strong, USA Federal Reserve, Montagu Norman, Bank Of England) agreed that Indian demand for gold had a “…deflationary effect on global liquidity,” therefore Indian demand for gold had to be regulated.”
in the spring of 1926, when Norman induced Strong to support him in fiercely opposing a plan of Sir Basil Blackett’s to establish a full gold-coin standard in India. Strong went to the length of traveling to England to testify against the measure, and was backed up by Andrew Mellon and aided by economists Professor Oliver M.W. Sprague of Harvard, Jacob Hollander of Johns Hopkins, and W. Randolph Burgess and Robert Warren of the New York Reserve Bank. The American experts warned that the ensuing gold drain to India would cause deflation in other countries (i.e., reveal their existing over-inflation) (from America’s Great Depression By Murray N. Rothbard, Chapter 5, The Development of the Inflation; Ludwig von Mises Institute)
The New York Times wrote how “it was most important for the Allies to agree on a policy that would prevent the Huns from capturing the very valuable raw materials which can be obtained in India, and sometimes in India alone.” Further, The New York Times went on and stated “how without Indian products there would be greater difficulty in winning the war.”
So, as the West traded, profited and consumed Indian production and goods, when it came to paying for the goods, they caviled – and ‘regulated’ Indian demand for gold – and even silver!!
INDIC
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Lol Just google for the images for heavy jewelry ......Most of this gold will reach its ultimate destination..... Bank locker.......
Rich will keep it in their locker.... Poor will keep it in bank's locker after taking a loan......
When my sister was married, she only wore a gold necklace and gold bangles and other light jewellery with it. But South Indian brides are heavily loaded with gold, no part of the body is left without gold.
Archie
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Its not Halfi heard south india has half the worlds gold locked away
its near 18-20% of the gold ever mined
nair
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When my sister was married, she only wore a gold necklace and gold bangles and other light jewellery with it. But South Indian brides are heavily loaded with gold, no part of the body is left without gold.
forget it one of my colleague got married, and since the gold was so much that she couldnt wear it, and then they packed it in a suitcase and gave it in wedding.......
Shinigami
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Donatello
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Well, it's not like India is producing high tech electronics that require gold wiring. Most of the gold demand is due to jewelry. And our South Asian culture, you know how it works.
Donatello
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Generation X had this concept of hoarding gold. Generation Y isn't that privy to gold trends. I mean, i don't care, neither do any of my female friends. my ex was more interested in what i fed her than what gold i bought her. LOL
Sahasranama
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Not many people know about this part of Indian history. I am pleasantly surprised you knew
. Have you read "England and the gold standard" ? Most "history" focuses on BS like names of ruler and the wars he fought, the REAL history reveals itself when you follow the MONEY.
Sahasranama
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St Augustine, Florida.No doubt this is an photo of a marriage somewhere in Europe or US ?
abjktu
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may or may not..But it is not a rare scene in Kerala... This type of wedding is very very common nowadays....No doubt this is an photo of a marriage somewhere in Europe or US ?
Anyway,It highlights your knowledge about Kerala and Malayalis...
Sahasranama
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Most people are not aware of how much India has contributed to WW-1.
By today's standard, India had contributed 42.6 Billion $ just on Goods and Stores like sugar, tea, iron, wood etc.. Just be revenue India contributed 78.5 Billion $ as Direct monetary contribution by todays standard.
Put it together and we get 121 Billion $ as India's contribution to WW-1.
To cheat India out of this money, Britain and the "West" unilaterally decided in 1920 that the silver coinage of England was going to be reduced from a standard of .925 fine to a basic fineness of .500, which is to say that the content of alloy in each silver coin was about to become double of what it used to be. ‘Australia, New Zealand and later most of the principal countries of Europe and South America followed suit.
Then Britain, withdrew her good (fine) silver coins from circulation and sold them on the markets at the stellar quotes of 1920. The movement brought about immediately a precipitous fall in the price of silver. Thus the steep depreciation in silver alleviated the strain exerted on sterling, and in the long run would altogether dispose of one channel through which India endangered Britain’s restocking of gold.
In the next step, Britian decided unilaterally that the rupee was to be pegged at 2 (two) gold shillings. This rendered the rupee enormously expensive in terms of gold, deliberately. The semi-coercive measure was introduced by blandishing India with
the deceptive prospect of her buying silver, or anything else she wished around the world, at bargain prices. And so Indian imports (from england), boosted by an artificially strong currency, did boom, while naturally her exports suffered a disastrous decline, which abruptly reversed the trade balance with Britain. Farmers dependent upon exports suffered as they witnessed their prices plummet to match the world level, and as a consequence their income sagged.
Indians realized this fraud and they attempted to correct this situation by converting their rupees into pounds, and then convert the pounds into gold. This capital flight (towards England to buy gold) automatically diminished the gold-standard reserve, which the Indian government maintained in London. The British then withdrew Indian paper-money circulation and created a credit crunch in India.
So Finally India with an overvalued currency and a credit crunch were prevented from Buying Gold.
The "west" as a bonus also discovered that this newly induced poverty in India prompted Indians to unearth its silver and gold hoards to pay for a debt burden exacerbated by the artificial dearness of the rupee.
The net result was that this unearthed gold too found its way to London in repayment of the adverse balance of payments. By 1920, India became a net exporter of gold and remained one until 1921.
By today's standard, India had contributed 42.6 Billion $ just on Goods and Stores like sugar, tea, iron, wood etc.. Just be revenue India contributed 78.5 Billion $ as Direct monetary contribution by todays standard.
Put it together and we get 121 Billion $ as India's contribution to WW-1.
To cheat India out of this money, Britain and the "West" unilaterally decided in 1920 that the silver coinage of England was going to be reduced from a standard of .925 fine to a basic fineness of .500, which is to say that the content of alloy in each silver coin was about to become double of what it used to be. ‘Australia, New Zealand and later most of the principal countries of Europe and South America followed suit.
Then Britain, withdrew her good (fine) silver coins from circulation and sold them on the markets at the stellar quotes of 1920. The movement brought about immediately a precipitous fall in the price of silver. Thus the steep depreciation in silver alleviated the strain exerted on sterling, and in the long run would altogether dispose of one channel through which India endangered Britain’s restocking of gold.
In the next step, Britian decided unilaterally that the rupee was to be pegged at 2 (two) gold shillings. This rendered the rupee enormously expensive in terms of gold, deliberately. The semi-coercive measure was introduced by blandishing India with
the deceptive prospect of her buying silver, or anything else she wished around the world, at bargain prices. And so Indian imports (from england), boosted by an artificially strong currency, did boom, while naturally her exports suffered a disastrous decline, which abruptly reversed the trade balance with Britain. Farmers dependent upon exports suffered as they witnessed their prices plummet to match the world level, and as a consequence their income sagged.
Indians realized this fraud and they attempted to correct this situation by converting their rupees into pounds, and then convert the pounds into gold. This capital flight (towards England to buy gold) automatically diminished the gold-standard reserve, which the Indian government maintained in London. The British then withdrew Indian paper-money circulation and created a credit crunch in India.
So Finally India with an overvalued currency and a credit crunch were prevented from Buying Gold.
The "west" as a bonus also discovered that this newly induced poverty in India prompted Indians to unearth its silver and gold hoards to pay for a debt burden exacerbated by the artificial dearness of the rupee.
The net result was that this unearthed gold too found its way to London in repayment of the adverse balance of payments. By 1920, India became a net exporter of gold and remained one until 1921.
Sahasranama
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What is highlights is your inability to understand sarcasm and how hollow your claims of defending "Indian culture" is.
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