Thanks to another reader, David, for sending another obscure but important story our way. A little more demand here, a little more demand there and the next thing you know, a little short squeeze you know where.
Rich farmers now buy silver bars, not jewellery
MUMBAI/PUNE/KOCHI: Rural India is opening a new chapter in personal finance. Instead of jewellery and utensils, farmers are celebrating their rich pickings from high crop prices by buying traditional favourite silver in coins and bars as the precious metal touches a 30-year top of Rs 50,000 per kilo. That’s no small thing. Rural consumers purchase 60% of over 2,000 tonne of silver India imports annually.
Traders say rural families are convinced silver will continue to spiral and therefore want to buy it in forms that are easy to encash later. Coins and bars, with guaranteed purity, make it easy. In 2010, silver outperformed gold in terms of returns, generating three times more.
You can read the entire story here:
http://economictimes.indiatimes.com/articleshow/7552751.cms?frm=mailtofriend
So between China and India, we're looking at about 1/3 of the worlds population then...
ReplyDeleteThis really is interesting to me and continues to prove to me that the people in India and China have a much different mindset on what money really is. Here in American people are slowly catching on but there's a long way to go. So many think the dollar is bullet proof.
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