Interesting news from India this week as it’s reportedly repatriated 100 Tonnes of Gold from the United Kingdom to store domestically. This is a very significant amount of Gold considering Indias total Gold holdings is reported as being 822.1 Tonnes so this repatriation represents a significant amount of Indias stack being brought back home. The question is - Why?
Of course the explanation given to mainstream is that it’s to ”focus on logistical efficiency and diversified storage” and sure, that may be true to some extent. I mean they are hardly going to cite trust, geopolitical issues or anything related to the fact that the BRICS Nations (of which India is a major player) have been talking about creating their own Gold Backed Currency lately.
Is there more to this story? I would say unequivocally – Hell YES! but unfortunately we can only speculate. I personally think this is a smart and very sensible move as the old global order continues to break down and we see dangerous escalations in Europe and the Middle East. I think that in any global Black Swan situation a nation would want to be holding it’s own Gold to help preserve its own economic and political stability. Similarly, if you wanted to create your own Gold Backed Currency then you’d need to have a good amount of it in your local vaults to back the currency with.
Does anyone have more insight into this story? Have a read HERE if you want to get some breadcrumbs to follow. It’s a very sanitised report but I think there are some clues there to dig up if you want to learn more.
