Replies to post #4919 on Direxion Daily Junior Gold Miners Index Bull 2X Sh (JNUG)

[Marketwise]

I don't know what to make of this "Modi business" going on in India, Goforthebet. It certainly doesn't sound constructive for the POG. It sounds like the PM of India is attempting to clamp down on money laundering in India by banning the 500 and 1000 rupee notes. I guess a ban on gold imports would be his next move should he deem it necessary in his battle against "black money" conversion to "white money" as gold is what is currently being used (purchased) to make that conversion. Would it spell an almost immediate 200 dollar drop in the POG? I don't know but I would certainly prefer to be on the sidelines at that time if possible. The quandary is - Who knows if or when such a move by the PM might occur?

[slazenger7]

If that were to happen, the exact opposite regarding the price of Gold would take place. There would be a massive rush to gold as investors would panic thinking that what happened in India could happen in their country as well. IMO -The threat (even if unlikely to happen) that a ban on Gold imports could happen on a broader level outside of India, would actually skyrocket the price of gold.