RBI Decrees No-Loan Zone Using Gold ETFs; Silver Price Shoots Up

The Reserve Bank of India is getting tough on banks as far as lending goes.

Via Reuters: “Banks would not be allowed to give loans against units of gold exchange-traded funds (ETFs) and gold mutual funds. As these products are backed by bullion and primary gold, the restriction on grant of loan against gold bullion will be applicable to loan against units of gold ETFs and units of gold mutual funds, the central bank said in a statement.”
“The RBI also said that while giving loan against gold coins sold by banks, the lenders should ensure that the weight of the coins does not exceed 50 grams per customer.”

The week’s biggest mover on MetalMiner’s weekly Global Precious Metals MMI® was the price of Indian silver, which saw a 8.4 percent increase. This comes on the heels of a 6.6 percent decline the week prior.

The price of Japanese silver rose 4.2 percent after falling 7.9 percent .the previous week. The price of Chinese silver rose 2.7 percent after falling 7.8 percent the previous week. The price of U.S. silver rose 0.6 percent after falling 5.9 percent the previous week.

The price of Indian gold bullion rose 4.5 percent after falling 4.4 percent the previous week. The price of Chinese gold bullion rose 2.8 percent after falling 6.9 percent the previous week. The price of Japanese gold bullion rose 2.3 percent after falling 5.6 percent the previous week. The price of U.S. gold bullion rose 1.9 percent after falling 4.9 percent the previous week.

Chinese platinum bar saw a 0.7 percent decline over the past week. After a 0.5 percent decline, Japanese platinum bar closed out the week lower. Following a steady week, prices for U.S. platinum bar closed flat.

The price of U.S. palladium bar fell 1.4 percent after rising 2.8 percent the week before. Chinese palladium bar rose by a slight 0.6 percent. Japanese palladium bar remained essentially flat from the previous week.

The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends.