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This Unique Gold Buying Strategy Is Lifting Selected ProducersDave Forest Interesting reports emerging this week from the world’s largest gold-consuming nation - India, where it appears buyers are increasingly looking to a new part of the world to secure bullion supply. That new supply source is South America where officials with MMTC, India’s largest public metals traders, said over the weekend that Indian gold buyers are increasingly venturing to buy their gold. Local press in India quoted senior management from MMTC as saying that India’s gold buyers are specifically going after unrefined “dore” gold from countries like Ecuador, Peru, Bolivia, Guyana, Colombia, Honduras and Nicaragua in order to benefit from better tax rates. That’s because unrefined gold like South America’s dore is subject to lower import taxes in India with such shipments receiving only 8% duty, as opposed to 10% for refined gold. By importing dore and then refining it in India, sellers get a significant break on taxes which, it appears, is prompting rising demand in several parts of South America. News sources quoted Ecuador’s ambassador to India, Mentor Villagomez, as saying, “For the first time the Central Bank of Ecuador shows export of gold to India for 2015.” And Bolivia’s ambassador, Jorge Cardenas Robles, also noted that his country has begun exporting gold to Indian buyers. Beyond those two nations, reports also suggested that dore imports to India from Peru have been rising, after beginning back in 2012. Showing that demand for South American gold seems to be growing across the board in this key market. Interestingly, this trend also appears to be prompting interest from India’s mining companies in picking up South American gold projects. Reports noted that three unnamed Indian investors “have decided to invest in gold mines in Peru.” And Bolivian officials said that a delegation of Indian gold miners is expected to visit the country soon. All of which is great news for South America’s gold sector. Watch for investments from Indian mining firms in the local bullion sector here. Here’s to going abroad, ### Dave Forest The information provided in this newsletter is based on the independent research of Dave Forest and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade any securities or commodities named herein. Information contained in this newsletter is obtained from sources believed to be reliable, but is in no way assured. All materials and related graphics provided in this newsletter and any other materials which are referenced herein are provided “as is” without warranty of any kind, either express or implied. No assurance of any kind is implied or possible where projections of future conditions are attempted. Readers using the information contained herein are solely responsible for verifying the accuracy thereof and for their own actions and investment decisions. Dave Forest does not make any representations about the suitability of the information delivered in this newsletter or any other materials that are referenced herein for any purpose whatsoever. The information contained in this newsletter does not constitute investment advice and Dave Forest is not registered with any securities regulatory authority to provide investment advice. Readers are cautioned to consult with a qualified registered securities adviser prior to making any investment decisions. The information contained in this newsletter has not been reviewed or authorized by any of the companies mentioned herein. To subscribe to Pierce Points please click here: www.piercepoints.com Copyright © 2016 Pierce Points 321gold Ltd |
