Restrictions on Gold Imports To India Creates Market Dislocation

With some of the most dangerous global events occurring in memory – Russia flexing its muscles, a Chinese fighter jet intimidating a US plane in international waters as a US carrier group moves into the region, the Middle East on the verge of a radical take over – gold is touching two month lows.

Gold prices dropping

While the market price of gold is dropping, leaving some gold traders wondering what type of world event it will take to move the price higher, supply and demand fundamentals in Asian nations may be distorted due to an increasingly thriving black market.

A recent Barron's article considers two major pillars of gold demand: India and China.

Ahead of a major...