Menu
  • Crash Course on Orderflow
  • Training
  • Premium
  • Traders Cafe
  • Intraday signals
  • MCX Signals
  • Library

Marketcalls

Simply Intelligent Technical Analysis and Trading Strategies

  • Software
    • Amibroker
    • NinjaTrader 7
    • Ninjatrader 8
    • Option Action
    • Market Analyst
    • Metatrader
    • Python
    • Datafeed
  • Market Profile
    • Orderflow
  • Markets
  • Commodities
  • Forex
  • Economy
    • Banking
  • Webinars
  • Trading Lessons
    • Algo Trading
    • Infographic
    • Video
You are here: Home / Commodities / Gold Monetization Scheme – Will it Lead to Further Fall in Gold prices?

Gold Monetization Scheme – Will it Lead to Further Fall in Gold prices?

March 10, 2015 by Balaji Leave a Comment

ar2

 
Recently, Indian govt announced a particular scheme in their budget 2015 notes which took a lot of attention, especially gold merchants and speculators. With gold prices tumbling since last couple of years, the new scheme-if it works, would not only increase the supply of precious metal at domestic level, in-turn cuts our international gold imports which further depresses the price at global scale.

What is gold monetization scheme?
The gold monetisation scheme is designed to help you make returns from your idle gold or jewellery without having to sell it. If you deposit your old gold with the bank under this scheme, you can earn an interest, calculated on the value of gold. The other benefit is that the gold will be in safe keeping without your having to cough up locker charges. Older gold deposit schemes in existence offered 1 per cent interest for three/four-year deposits. But sources say that the new scheme will carry a higher interest to encourage people to come forward to monetise their gold. The Government intends to on-lend this gold to jewellers and reduce the country’s import bill.

The jewellery you deposit will be melted and assayed. Therefore, at the end of the deposit term, you will get back only gold bars and not your original piece of jewellery.

What are means and consequences?
As we already know the gold prices are tumbling in larger timeframes since last couple of years. This scheme if it works would increase the supply at domestic levels. Indian investors with excess exposure on the precious metal will use the new scheme to secure the interest rate to offset the fall in price. More gold will be offered in large scale to banks, which in turn increases the supply in domestic level.

More gold supply at domestic scale offsets the need for importing from abroad .This causes a cut in import bill and further depresses the gold price in global scales. why global scale? India is the largest importer of gold in international level,which makes sense for further fall.

Conclusion
We can expect the gold prices to fall further in long term, even if the short term movements become choppy or rebound

Related Readings and Observations

  • Trading the Volatile Markets with this simple technical strategy.Trading the Volatile Markets with this simple technical strategy. If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My […]
  • Trading the Indian Budget –Fiscal policy 2015Trading the Indian Budget –Fiscal policy 2015 Government spending policies that influence macroeconomic conditions. Through fiscal policy, regulators attempt to improve unemployment rates, control inflation, stabilize business cycles […]
  • Chasing Profits with Price Action Trading Chasing Profits with Price Action Trading The concept of price action trading embodies the analysis of basic price movement as a methodology for financial speculation, as used by many retail traders and often institutionally where […]
  • Winning with Price Action StrategyWinning with Price Action Strategy We know the famous statement,95% of retail traders are losers and I don't know if this is true! because there is no clear evidence or statistics about that.But regardless,the question you […]
  • Trading the Volatile Markets with this simple technical strategy.Trading the Volatile Markets with this simple technical strategy. If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My […]
  • Do Cycles Exist in Financial Markets? Can We Trade them Profitably?Do Cycles Exist in Financial Markets? Can We Trade them Profitably? All right, its time to tackle some important questions and controversies. Do cycles exist in financial markets? Even if they exist, can we trade them profitably? Perhaps it’s often debated […]

Filed Under: Commodities Tagged With: Commodities, Forex, Fundamentals, Futures and Options, Gold, Investing, Investment, Monetisation, Nifty, Options, Silver, Technical Analysis, Trading, Trading System, Volatility, World Indices

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Email Newsletter

Sign up to receive email updates on latest trading strategies , analysis & financial market updates

We Respect Your Privacy

Premium Access

Username:
Password:
Remember Me
Lost your password?

Tools For Traders

  • Marketcalls Android App
  • MCX Signals
  • Intraday Signals
  • International Commodities
  • OI Tracker
  • Participation OI
  • Your Broker
  • Market Sentiment Analysis

Amibroker Updates

[Recorded Webinar] How to Send Bracket Order, Cover Order and Multiple Orders using Amibroker and AlgoAction Platform

December 25, 2018 By Rajandran 1 Comment

AlgoAction Now Supports Bracket Order and Multi Orders

December 23, 2018 By Rajandran Leave a Comment

Code Snippet : ORB – Open Range Breakout Levels – Amibroker AFL Code (Better Version)

December 4, 2018 By Rajandran 1 Comment

Button Trading in Amibroker using AlgoAction Platform

December 2, 2018 By Rajandran Leave a Comment

[Recorded Webinar] Chart Based Vs Scan/Exploration Based Automated Trading – Amibroker

December 2, 2018 By Rajandran 1 Comment

  • Facebook
  • Google+
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Metatrader Updates

MetaTrader 5 Demo Servers Now Available for BSE Currency Markets

March 20, 2018 By Rajandran 8 Comments

ChartIQ – WebTrader for MT4

December 4, 2017 By Rajandran 4 Comments

Metatrader 4 – Web Platform Overview

October 29, 2015 By Rajandran 9 Comments

William VIX FIX Indicator for Metatrader 4

May 16, 2015 By Rajandran 9 Comments

How to Install Custom MQL4 indicators in Metatrader

November 14, 2014 By Rajandran 6 Comments


About | Contact Us | Terms and Conditions | Privacy Policy | Support Policy | Privacy Policy | Refund Policy | Disclaimer


© Copyright 2018 Marketcalls Financial Services Pvt Ltd · All Rights Reserved · And Our Sitemap · All Logos & Trademark Belongs To Their Respective Owners·

Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither marketcalls.in website nor any of its promoters shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon.