In this Palisade Radio interview with Collin Kettell, I discuss gold demand in India and China, Singapore’s growing role as a gold-trading hub, and why I am skeptical of the euphoria surrounding the Indian stock market.

We also discuss India’s gold import restrictions, the rise in smuggling, Narendra Modi’s perceived reform momentum, and why mining companies still have a lot of pain ahead unless they change their culture.

Watch the full discussion below:

Key Takeaways

• India’s restrictions on gold imports have not eliminated demand; they have pushed much of the trade into smuggling and corruption.
• Western investors often misunderstand India because they assume rules and reforms can be implemented cleanly.
• The optimism around Narendra Modi and the Indian stock market is excessive, given inflation, low yields, weak dividends, corporate debt, and cultural corruption.
• Indian households continue to prefer gold and property because trust in institutions, currency, and productive investment remains weak.
• Gold buying remains strong in China and Hong Kong, despite widespread fears about overbuilding and property speculation.
• Singapore is positioning itself as a gold-trading and storage hub, aided by its tax policy and broader reputation for safety and the rule of law.
• I remain cautious on producing mining companies because many still lack positive cash flow and have not changed their culture enough.
• I view gold primarily as insurance, not as something whose price can be precisely predicted.