Sunder’s List: Bye Bye Gold

Roundup: S&P +0.63%, Dow +0.82%, Nasdaq +0.71%, Gold $1241.20, London +1.28%, Germany +1.74%, France +1.48%. At pixel: Nikkei +0.99%, Hang Seng +0.37%

Holdings in the 14 largest gold ETPS have plunged 31%. The removals erased $69.7 billion in the value of the assets as prices fell by the most since 1981. (Bloomberg, #gold) Perhaps it is because instead of inflation, developed countries are fighting deflation and instead of economies crawling back to the stone age have finally started looking up.

Increase the price you pay farmers and decrease the price you charge consumers and then wonder why Indians prefer to buy gold and shove it under their mattresses. (yesterday, today)

Non-resident Indian foreign currency deposits are camouflaging a domestic deposit crisis. Domestic deposit growth adjusted for FCNR flows of $34 billion is 12.8%, way below the central bank’s comfort zone of 14% deposit growth for the year. (ET)

Auto firms want govt to replicate cash-for-clunkers scheme in India. Customers will receive concessions of up to Rs.1 lakh in taxes if they sell vehicles older than 15 years. The scheme is expeted to generate Rs.31,332 crore revenue for govt through taxes in eight largest cities. (LiveMint)

GlaxoSmithKline intends to increase its holding in Indian subsidiary GlaxoSmithKline Pharmaceutical to up to 75% from 50.7% through an open offer in a deal worth $1.02B. GSK is proposing to pay 3,100 rupees ($49.895) a share. The Indian firm will remain listed. (SA) [stockquote]GLAXO[/stockquote]

Should you invest in art? Probably not. Although estimates of returns vary, one think everybody agrees on is that long-run real returns are less than investing in stocks. (WSJ)

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