Gold Demand: Big Shifts in China, India


Some days there’s barely any worthwhile news.  Other days, there’s a flood of it.  Today we see reports that gold demand is slightly down in India, due to jewelers waiting for a possible tax reduction. If true, this would turn out to be a delayed demand, and so we’d expect to see a corresponding pop in sales when the tax rate changes – otherwise, after the vote if the rate isn’t lowered.

Interestingly, there are still reports of gold smuggling and off-the-books sales to avoid the country’s gold tax.  The chairman of Malabar Gold & Diamonds, a huge jewelry retailer, says the tax reduction would be “a huge gift”.

China, meanwhile, forges ahead with increasing demand. The increase is due to growing demand for gold jewelry in smaller cities, indicating wealth is spreading through the country’s middle class. And with a population over 4 times the size of the United States, that’s a lot of people coming in to the gold market.

If that trend increases, we can expect demand for gold to remain strong for some time to come.  You can read more about gold demand and supply in today’s featured article – we have to leave something for those of you who like to read! In this case, it’s gold supply info.

 Related: Alabama Is Cutting its Gold Taxes. Here’s What You Need to Know.

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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