Gold News: 3 Factors Decreasing India’s Demand

Indian Wedding

We’ve been watching for this.  The first report of gold sales for this year’s Indian wedding season are pointing down. Three main factors are cited for the decreased gold demand: uncertainties surrounding the new GST tax, government crackdowns on new compliance regulations, and rising gold prices.  

Whatever the reasons, so far it’s all meant lower gold sales than last year.  And last year was no record-setting year.  Gold demand hit a 7-year low last year when the government withdrew high-denomination cash notes. The aim there was to reduce the size of the untaxed black market, and halt supposedly rampant money laundering.

Hopefully those efforts are working, as the legitimate gold market is paying a big price.  Gold dealers are certainly taking a big hit. Hopefully the bad guys are, too.  

Conclusion

What this means for the price of gold is most likely less support, though it’s still too early to tell if there is an actual downdraft coming.  Today’s featured article gives some more insight and details into the situation in India, along with a few choice quotes.

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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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