At certain times of the year, particularly, people in India purchase very large amounts of gold. Apparently it’s a phenomenon we here in our part of the world don’t quite “get.” Regardless of whether we understand or not, it’s a fact of life over there. So imagine if a big customer stops shopping at a particular specialty market in town. Suddenly the shop keeper isn’t selling as much merchandise. Just because the one customer stopped shopping there doesn’t mean the other customers are going to buy up the former customer’s share of products – they have been buying what they want all along, and their own needs would not have changed. So, the shop keeper has to put his merchandise at least temporarily on sale to clear out inventory that isn’t moving. True, Russia, China, etc., might then take advantage of the sale if they’re smart, but at least temporarily the price of gold goes down when the Indian share stops being purchased. Apparently that’s what’s expected to happen IF India bans imports, thereby disallowing its citizens the opportunity to satisfy their huge gold appetite. Time will tell….