Price of gold in dollars well over $3600 in India as currency crisis threatens to bring their economy to a halt

As news continues to come in from the nation of India following the government’s order to eliminate certain currency notes from their monetary system, the rush to both trade in, and move money out of banks has been the singular thought for hundreds of millions of people.

And as part of this monetary transfer has been the massive demand for gold, especially since Modi pushed for a suspension of imports of the yellow metal last week. And according to many sources, the price of gold in dollars has now reached over $3600 per ounce as the people move to get rid of their rupees and into the one tangible asset that weathers all crises.

Measure planned to prevent people from hoarding cash and generating income that could evade taxes, according to government officials with direct knowledge of the matter. Planned measures include limit on large cash withdrawals from bank, the officials said, asking not to be identified citing rules on speaking to media. Budget, due in February, may have steps to encourage use of checks, credit and debit cards. Purchase of gold jewelry said to be made more stringent to prevent switching of asset from cash. Finance Ministry spokesman D. S. Malik couldn’t be reached for comment. – Zerohedge

Perhaps the most interesting and destructive thing to come from Prime Minister Modi’s move against the Indian currency is the fact that productivity has virtually stopped as people are spending several hours per day swapping over $60 worth of rupees due to the capital control laws limiting withdrawals.
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Price of gold in dollars well over $3600 in India as currency crisis threatens to bring their economy to a halt