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For the past year, we have opined that India’s government may be the world’s most inept; which, as you well know, are saying A LOT.  By kowtowing to Western bankers – and thus, massively overprinting the Rupee – the Reserve Bank of India has created one of the world’s worst inflation problems.  Compounding this madness, the Indian government has undertaken an open-ended promise to subsidize two-thirds of the population (800 million people) with rice and wheat at approximately one rupee per kilogram (i.e, a penny per pound), compared to the current market rates of roughly $0.15/lb and $0.11/lb. In other words, the equivalent of naked shorting billions of ounces of silver at, say, $5/ounce.

Worse yet, it moronically decided to restrict gold imports and sales, to a billion-plus gold loving, rupee hating people.  Within months of the last, onerous tariff increase – in August – the Indian smuggling market exploded.  Physical premiums over the paper “spot price” have surged to record highs of 20%-25%, and it is estimated that as much as 1,200 tonnes may ultimately have been imported into India in 2013, despite these restrictions.  Thus, it should be no surprise that the ruling, anti-gold Congress party was soundly swept in last month’s regional elections; setting the stage for the nationalist BJP party to take back the premiership in May’s national elections.  If this occurs, which is highly likely, one would anticipate most – if not all – of the gold import restrictions to be abolished, causing a massive increase in demand, well above and beyond what the smuggling market produced.

Consequently, the Congress party – in typical political back-peddling, appears to be loosening up some of the gold import restrictions; although at this point, the details are sketchy.  In other words, they realize the “war against gold” has been lost in a matter of four months; and thus, may well fight an intense war for gold with the BJP prior to May’s elections.

Readers, the stars are lining up for an utterly massive rebound of gold and silver prices in the coming years; and frankly, the odds of such an event occurring this year are growing with each passing day.  Remember, when gold and silver finally break their “Cartel shackles,” the ramifications on global fiat currency values could be catastrophic.  This is why you must act NOW to protect yourself from what’s coming; as once it arrives, it will be too late.