India has historically been a huge market for gold, mostly because we know that Indians like to wear their wealth. In all seriousness, they have gotten good at protecting their purchasing power with hard assets or foreign currencies over the continually declining Rupee. The Indian government has been trying to unsuccessfully curb this appetite for gold but there is hope that they may look to ease up on some of the gold import curbs.

" The Ministry of Commerce and Industry today made a case for easing curbs on gold imports as over - regulation is encouraging smuggling of the yellow metal. I have been of the consistent view that we have to have a balance. Over - regulation leads to another problem...and that is smuggling. Therefore, some easing is essential, Commerce and Industry Minister Anand Sharma told reporters here."

Prohibition breeding illegal activities? Who would have thunk. The above report was from the Hindu Newspaper but its probably far from a done deal. This is an election year in India and the politicians there will do everything short of selling their mothers to win/retain their political gravy train.

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