What is Gold in a Vault Really worth ?

[jeff of pa]

[FONT=Arial, Verdana, Helvetica, sans-serif]In 1991, the Indian government pledged the nation’s gold reserves against foreign loans that were provided to the nation from international sources. So they have already trodden the path of using gold to support their international presence and in international dealings.

[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][FONT=Arial, Verdana, Helvetica, sans-serif]Please note that there are around 20,000 tonnes of gold in private hands in India, worth currently, US$ 900,200,000,000 at $1,400. Some believe the tonnage to be closer to 25,000 tonnes. If so, this is worth $1,125,250,000,000 at $1,400.

[/FONT][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]If the Indian government took this gold out of Indian hands into government coffers, confidence may well return to the Rupee, provided the gold were used to support the Rupee, as collateral. Is this likely? It depends on just how bad the crisis becomes. But those who believe talk of confiscation is scaremongering, would do well to look at what’s happening there right now.

However [FONT=Arial, Verdana, Helvetica, sans-serif]if they Do & [/FONT][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][FONT=Arial, Verdana, Helvetica, sans-serif][FONT=Arial, Verdana, Helvetica, sans-serif]if the gold were used to support the Rupee, as collateral, is it really worth anything ?

I say no unless they Confiscate & sell for Cash.

Is India preparing to ‘Confiscate’ its Citizens’ Gold?
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[jim4silver]

In 1991, the Indian government pledged the nation’s gold reserves against foreign loans that were provided to the nation from international sources. So they have already trodden the path of using gold to support their international presence and in international dealings.

Please note that there are around 20,000 tonnes of gold in private hands in India, worth currently, US$ 900,200,000,000 at $1,400. Some believe the tonnage to be closer to 25,000 tonnes. If so, this is worth $1,125,250,000,000 at $1,400.

If the Indian government took this gold out of Indian hands into government coffers, confidence may well return to the Rupee, provided the gold were used to support the Rupee, as collateral. Is this likely? It depends on just how bad the crisis becomes. But those who believe talk of confiscation is scaremongering, would do well to look at what’s happening there right now.

However if they Do & if the gold were used to support the Rupee, as collateral, is it really worth anything ?

I say no unless they Confiscate & sell for Cash.

Is India preparing to ‘Confiscate’ its Citizens’ Gold?

I don't see India "confiscating" its citizens' gold. Gold takes on a much different meaning in India vs. US and other countries. Gold is very much a part of the culture in India and not for all the same reasons gold bugs in the US like it.

But unlike here in the US, the citizens of India actually do have a large amount of gold relative to other countries via citizen ownership. So if any country wanted to confiscate, they would get more bang for the buck there in India than probably any other country.

Just my opinion.

Jim