via SafeHaven.com - India Gold Soars

Adam Hamilton has an excellent write up on the Rupee Currency Crisis.

When the Icelandic Krona collapsed, along with Kaupthing and other Icelandic banks, there was a brief repose in credit markets.

What followed afterwards was the 2008 bank panic, where Lehman Bros. went bankrupt.

A collapse of a currency where a large portion of the world resides is bound to have a much larger adverse effect on credit markets, especially those banks heavily exposed to Indian bond markets.

Much attention has been paid to Eurozone difficulties, but I would say that this currency collapse probably merits some attention, especially if the IMF gets involved.

http://www.safehaven.com/article/31016/india-gold-soars

Are we seeing a major catalyst for higher gold prices? Did the pope ever wonder if bears do their business in the woods?

Gold in Rupees - Via Kitco

-F6