Gold Sales: Here’s Why They’re Down in India

Market watchers know gold is looking for a foothold in the current environment. For simplicity we’ll describe it as “investors looking for big returns from equity markets”, meaning stock markets keep rising, darn them. What has this meant for gold sales? 

Well, investors throw more money at the things that are rising, and they get that money by selling safe haven assets like gold. Usually two things provide support in times like this: demand for physical gold from jewelry and manufacturing, or unexpected geopolitical instabilities (code word for “big unexpected events”).  News out of India is that gold isn’t finding much help on the demand side there. May gold imports are reportedly down to 77.6 tonnes, from 126 tonnes last year.

Ouch. So we’ll have to look elsewhere for promising signs, like maybe the new market in China? You can read more about current Indian gold demand in today’s featured article.  

Will gold prices recover soon, or will they stay flat as a pancake around 1300?  Or – perish the thought – will they drop down into the mid-1200s? Let us know what you think in the comments below.

 Related: This Singapore Report Shows the Future of Gold – 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!"

Leave a Comment