$13 billion Naked Gold Short Growing
The silver and gold markets had a mixed performance this week.
The spot silver price did pop briefly over $34 oz intra-week only to give back nearly $1 oz to close just over $33 oz bid.
The spot gold price got another highest weekly close, with spot finishing at $3,023 oz bid.
The spot gold-silver ratio climbed on silver's relative weakness to a still stubbornly high level of 91.
Probably the craziest story on the Eastern side of the world this week was the admission that the Indian government is naked short $13 billion notional in a silly gold government back investment option that has blown back in myriad ways.
Gold Price Paradox: A $13 billion naked short on yellow metal in India that loves glitter:
https://economictimes.indiatimes.com/...
In 2015, India’s finance ministry introduced a sovereign gold bond program to reduce gold imports and offer returns linked to gold prices. However, the program turned costly as gold prices surged, resulting in significant government liabilities. Taxpayers now face the burden of these rising costs, with the plan not curbing gold imports effectively.
In terms of India, an outstanding $13 billion naked gold short loss is like one month's trade deficit sum at the moment, they'll debase the fiat rupee further, same old story.
It is pretty ironic cause the Reserve Bank of India (RBI) in 2013 admitted that the global gold market at the time was paper levered 92 oz paper to 1 oz physical.
Here they are, a dozen years later, eating their paper promise losses galore as local Indians continue to buy actual physical gold and silver in size that only this century China in gold and the USA in silver can match in tonnage terms.
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That will be all for our weekly SD Bullion Market Update. And, as always, to you out there, take great care of yourselves and those you love.
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