Gold News: India’s Gov’t to Overhaul Its Fragmented Market?

An 1862 India coin. One Mohur

As we’ve said before in prior gold news, India, is important in world gold trading.  What most people don’t appreciate is that India has the second-largest gold trading market in the world, behind London. 

The curious part is that gold currently only trades as futures on that market.  India Prime Minister Narendra Modi‘s government pledged they would overhaul the fragmented gold market in India, adding a spot gold exchange like the one in London.

This would make gold prices much more transparent in India, and also to the world as well.  Futures trading, after all, does have an effect on current prices. However, a spot gold exchange gives an unmatched right-now read on market sentiment.  And with India being so important in the worldwide gold market, you’d think everyone would want to know what buyers in India are thinking right now.

Today’s featured article discusses the factors behind and facing the moves toward more transparency in the Indian gold market, which we of course applaud.  Transparency is, after all, the investor’s best friend.

Related: 2 Big Gold Questions You MUST Address

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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