| Author |
 Topic  |
|
|
pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
 Posted - 06/16/2008 : 18:22:48
|
Is India slowing down?
Per NBR, India is hurting because the US is hurting. Due to the slowdown in the US, India is feeling the pinch, clothing makers have had to lay off workers and cut back on production. To make matters worse, inflation is raging in India. Many people in India live on $2 a day  rising food costs have led to food riots and the Indian Government stepping in to curtail some food exports to relieve the shortages.
As India feels the pinch from inflation and loss of jobs, its manufacturing sector will also begin to feel the pinch, leading to lower purchases of metals since there will be lower demand internally and externally. (This is just my opinion of course, but it seems reasonable that this would happen.)
|
|
|
Ant
Penny Hoarding Member
USA
894 Posts |
Posted - 06/17/2008 : 10:26:24
|
But based on my Dell customer service experience last night, the call centers there are still up and running and speedily dispensing helpful advice!!! Not.  |
Lovely dimes, the liveliest coin, the one that really jingles. --Truman Capote
Coins are the metallic footprints of the history of nations. --William H. Woodin |
 |
|
|
fb101
Administrator
USA
2856 Posts |
Posted - 06/17/2008 : 11:13:24
|
| Makes sense to me, but I think that there will be others taking advantage of the weakness to buy metals at current prices +/- so no significant drop. |
 |
|
|
|
Ardent Listener
Administrator
USA
4841 Posts |
Posted - 06/17/2008 : 16:31:56
|
quote:
Originally posted by pencilvanian
Is India slowing down?
Per NBR, India is hurting because the US is hurting. Due to the slowdown in the US, India is feeling the pinch, clothing makers have had to lay off workers and cut back on production. To make matters worse, inflation is raging in India. Many people in India live on $2 a day rising food costs have led to food riots and the Indian Government stepping in to curtail some food exports to relieve the shortages.
As India feels the pinch from inflation and loss of jobs, its manufacturing sector will also begin to feel the pinch, leading to lower purchases of metals since there will be lower demand internally and externally. (This is just my opinion of course, but it seems reasonable that this would happen.)
It all goes back to how well the metals (either base or precious) will do during a recession. Base metals such as copper have a history of not doing so well during an economic slowdown. Even the precious metal silver has a history of not doings so well during a recession due to its traditional lack of use by industry during rough economic times.
But two things that we should consider are that both inflation and a recession may be on its way. Such a stagflation may mean money may move into the metals as a hedge against such a stagflation. Another is the fact that the people of the Asian countries such as India often move their money into at least gold when they sense the economy is heading south for what ever reason. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
|
|
| |
Topic |
|
|
|
India reeling America's fallout
Forum Locked
