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Getting married in India & the price of gold

November 3, 2009

gold ringThe Central Bank of India announced this morning that they purchased 200 metric tonnes of gold from the International Monetary Fund. See: http://www.imf.org/external/np/sec/pr/2009/pr09381.htm

This is ostensibly bullish for the price of gold. But is it bullish for Blue Nile stock? (NILE)

Rocky does the math:
1 Tonne = 32,151 Troy Ounces
1 Troy Ounce = 31.10 Grams

 This fashionable Blue Nile wedding ring contains 1.6 grams of gold:

 http://www.bluenile.com/wedding-ring-gold_6673

Rocky’s X-22 computer calculates that the Indian Central Bank just bought enough gold for “only” 125 MILLION wedding bands. Since the population of India is 1.1 BILLION, the Indian Central Bank is sensibly planning ahead.

[Disclosure: Rocky has been, is, and may continue to be, long gold bullion. But he may change his mind if he reads that scientists have finally succeeded in turning lead into gold.]

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  1. masteroftheuniverse
    November 4, 2009 at 2:42 pm

    Rocky,

    in the 70’s they managed to turn lead into gold. The problem is that it cost about 6MM to make a gram of gold, so I don’t think we have to worry about some alchemist cranking out gold

    Jeff

  2. allocator
    November 20, 2009 at 10:56 pm

    Jeff,

    Then what the heck did they build the CERN accelerator for?? 🙂

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