Gold Smuggling

Since India’s government increased import restrictions to defend its current account and Rupiah there have been many anecdotal reports about the rampant gold smuggling to get around official restrictive channels.  What is not anecdotal is policing authorities’ seizures and that just hit an all time record of over Rs10 billion in value or around 3.5 tonne for the fiscal year 2014-15.  For perspective, that represents a 900% increase on the 2012-13 year prior to restrictions.  Given it is generally accepted they are only catching less than 1 in 10, one can assume there was in in excess of 35 tonne of gold that needs to be added to India’s already incredible 850t.