Tuesday, November 3, 2009

India dumps U.S. dollars for gold

From Financial Times online:
Gold prices on Tuesday surged to an all-time high after India’s central bank bought 200 tonnes of the precious metal, swapping dollars for bullion as the country’s finance minister warned the economies of the US and Europe had “collapsed”.

India’s decision to exchange $6.7bn for gold equivalent to 8 per cent of world annual mine production sent the strongest signal yet that Asian countries were moving away from the US currency.

The purchase by New Delhi’s Reserve Bank from the International Monetary Fund pushed gold prices to a record $1,086.10 per troy ounce, up 2.6 per cent on the day, as traders bet that other central banks would also become buyers.
Just as we are told that the recession is over, our ally and nuclear power, India, proclaims that our economy has collapsed.  That can't be good news.

2 comments:

  1. Even the Australian Dollar are increasing, AUD is now 42.63, its better to invest in Gold, Loose Diamonds, Engagement Rings, Diamond Jeweler, Jewelry for women

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  2. The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people....

    If any "Health Care Reform Bill" or "Cap and trade Bill" is ever passed by our federal government, it will be time for states to immediately file law suits claiming...Unconstitutional!! End of debate.

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