Silver escapes excise duty in Indiaon March 26, 2012 at 12:59
The demand for silver is set to violently rock upwards after investment grade silver coins (silver purity of 99.9% or above) and silver jewelry were recently exempted from excise duty (tax) in India.
The silver bugs in India are celebrating while the gold bugs are chewing on the fact that excise duty on gold was increased from 1.5% to 3%. This means that no excise duty (tax) is payable on the production or sales of investment grade silver coins (silver purity of 99.9% or above) and silver jewelry in India. India’s Finance Minister’s decision to exempt silver from excise duty is a huge step towards driving another stake into the heart of dishonest money, especially dishonest money represented by the U.S. Dollar, which is the dominating fiat currency today. It is after all no secret that India has been helping Iran for a while now to get around sanctions imposed by the United States and Europe. They do it by paying in gold for Iranian oil and not in U.S. Dollars as previously. This and their latest move of course threatens the global fiat Ponzi scheme (the “paper gimmick”) and is one of the reasons why the U.S. is threatening to invade Iran and to impose sanctions on India as well. This is why the on-going currency wars, where honest money has started to push out dishonest money, is expected to erupt in a full-blown Third World War (WWIII). The fact that India has now dropped excise duty on silver in its purest forms is not because silver has escaped India’s Finance Minister’s attention. It is rather because India is sending the U.S. a clear message that India is prepared to increasingly push towards real or honest money (gold and silver), while allowing Indian citizens to some extent to prepare for the coming complete collapse of all fiat currencies (non-redeemable paper notes, fiat paper currency, electronic currency, the Devil’s money, toilet paper currency, trash), led by the once mighty U.S. Dollar. The latest move by India has in all probability not only set the scene for more animosity between the U.S. and India, but has also set the scene for an increased demand for silver bars and silver coins, not only in India, but elsewhere in the world as well. Elsewhere in the world as well, because it makes sense after all to acquire or buy silver bars and silver coins (silver purity of 99.9% or above), especially if one knows that the demand for the mentioned silver bullion products is set to increase substantially in a large market such as the Indian market. As the President of the Bombay Bullion Association, Prithviraj Kothari, notes: “There is not much demand for silver jewellery among Indian investors. Most go for high value silver coins or for a 1 kilo silver bar. The latter is expected to fly off the shelves now and investor interest would surely be pushed higher as a consequence of the double whammy on gold in the budget” (Silver set to shine after escaping India’s budget clutches, SilverDoctors, The Doc, 19 March 2012). Yes, Indian investors surely appreciate the artistic beauty and luster of silver jewelry, but they are aware of the fact that silver jewelry pieces, unlike silver coins, are for one not standardized measures of silver purity and weight. This is not to say that the demand for silver jewelry is not high in India or that it will not increase as a result of the excise duty exemption, it is rather to say that investors in India prefer to buy or acquire silver coins (silver bullion coins) and silver bars (silver bullion bars). However, needless to say, it is better to hold silver in the form of silver jewelry than holding no form of physical silver at all.
Given the above, it is highly unlikely that the demand for gold will fall in India as a result of the doubling in excise duty on gold production and sales in India, but the demand for silver has most definitely received a welcomed boost. Yes, Ladies and Gentlemen, it is time to continue to ignore the paper manipulated silver price and to acquire or buy more physical silver (real or honest money), especially in the form of silver bullion coins. Wealth is after all increasingly measured in ounces and not fiat currencies (non-redeemable paper notes, fiat paper currency, electronic currency, the Devil’s money, toilet paper currency, trash), despite the majority of people’s ignorance.