What with China’s and Russia’s aggressive actions in the gold market, and Venezuela’s woes, it feels like we haven’t looked at India for a while. India still has, after all, one of the largest gold markets in the world. Last time, we checked in gold sales seemed to be rising, which is a good thing for gold bulls. Now comes news that the country’s efforts toward combating gold smuggling seem to be paying off.
A seizure of 107 kg of gold, announced in March, was followed by $365 million spread between illegal gold, liquor, drugs, and cash seized in the month ending April 14th. Indian officials are confident that increased smuggling crackdowns are paying off and banks are seeing more legal imports of gold coming through. This has led to gold selling at a premium once again in the Indian markets, indicating there is less illegal gold available at tax-avoiding prices.