Indias Gold Rush: Its Impact and Sustainability

Contents

I. II. III. IV. V. VI. VII. VIII.

Introduction Evolution of Gold Policy How big are Indias Gold Imports? High Levels of Gold Imports, Is it Sustainable?? Issue Possible Way Out Appendix Karat Bars International

Executive Summary
India imports most of its gold requirement. Gold as a commodity on its own does not add much to the productive capacity of the economy. Moreover, the foreign exchange reserve that is used to import gold reduces the availability of this resource to finance the import of other commodities. Such high value of gold imports has now started hurting Indias current account position. Golds share in total import bill of the country has gone up from 8.1 per cent in 200102 to 9.6 per cent in 2010-11. Annual Rate of Gold Imports growth in the last three years was very high. In 2008-09 the growth was 23.0 percent, in 2009-10 it was 38.1 per cent and in 2010-11 the recorded growth stood at 18.3 per cent. Thus the average rate of growth during this period was 26.8 percent. Although the global financial conditions prevailing during this period were volatile yet such high levels of gold imports indicates Indias obsession with gold. ASSOCHAM projections for gold imports suggest that: The projected Gold Import figures under two different conditions would be: Scenario 1- Gold import bill would be US $ 100 billion by 2015-16 Scenario 2 - Gold import should reach US $ 65.4 billion in 2015-16 In terms of percentage share of gold and silver combined were the 2nd most imported commodity in 2010-11. Whereas comparatively the import share of other key industrial raw materials such as Coal, Coke, Iron and Steel is much lower in the total import bill of the country. India accounts for nearly one-third of the total world demand for gold.

 Indian consumer demand for gold is 37.6 per cent more than that of China. Whereas in terms of GDP, Indias GDP is just 27.7 percent of China and a meager 11.0 percent of USA. Indias forex reserves are 8.81 percent of Chinas forex reserves yet its gold demand is more than that of China by 37.6 percent. Indias gold imports were higher than the twelve states GSDP in the year 2010-11.

Gold import value for the year 2010-11 was higher than the budget estimated expenditure on Urban Development, Housing, Family Welfare for the year 2010-11

Thus there is an urgent need to encourage the substitution of gold purchases with alternatives in the formal financial sector which shall also help in increasing the productive capacity of the economy.

I.

Introduction

In much of Asia, the Middle East, and the Indian subcontinent, gold is the best possible protection against upheaval, both political and economic. For men and women throughout the developing world, gold is still one of the most liquid and widely accepted forms of exchange, quite simply the most efficient store of value they possess. As we know that Indias domestic production of gold is very limited, the rising demand has to be sourced from outside the country. Moreover, Gold as a commodity on its own does not add much to the productive capacity of the economy. When one buys gold, it either is stored in lockers or gets converted into jewellery. In both the cases, money spent on purchasing gold gets blocked since gold is not a productive asset. There are certain qualities of gold that make it a desirable investment option. Some of these being: The ability of gold to insure against instability and protect against risk. Has universal acceptance. Provides liquidity. Deep cultural affinity with gold purchase ref. Karatbars International A look at the Indian import figures for gold over the period 2001-02 to 2010-11 suggests that: Golds share in total import bill of the country has gone up from 8.1 per cent in 2001 -02 to 9.6 per cent in 2010-11. In value terms, it has risen from US $ 4170.4 million in 2001-02 to US $ 33875.7 million in 2010-11. A growth rate of 63.5 percent is witnessed for the period 2008-09 to 2010-11.

(Please refer to Table 1)

Source: RBI Data for 2009-10 are revised Data for 2010-11 are provisional

Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Table 1 Gold Imports - US Dollars (US $ million) Percentage Gold Import Total Import Share 4170.4 51413.3 8.1 3844.9 61412.1 6.3 6516.9 78149.1 8.3 10537.7 111517.4 9.4 10830.5 149166 7.3 14461.9 185735.2 7.8 16723.6 251439.2 6.7 20725.6 298833.9 6.9 28640.1 288372.9 9.9 33875.8 352574.9 9.6

A look at the top ten import commodities for India over a period of ten years suggests that: The percentage share of gold and silver combined has risen from the 3rd most imported commodity in 2000-01 to the 2nd most imported commodity in 2010-11 behind only crude oil. Whereas comparatively the import share of other key industrial raw materials such as Coal, Coke, Iron and Steel is much lower in the total import bill of the country. (Please refer to Table 2) Table 2 Top Ten Import Commodities India (Percentage Share) 2000-01 2010-11 Commodity Share Commodity Petroleum, Crude and Products 31.0 Petroleum, Crude and Products Pearls, Precious and SemiPrecious Stones 9.5 Gold and Silver Pearls, Precious and SemiGold and Silver 9.2 Precious Stones Machinery except Electrical and Electronic Goods 6.9 Electronic Machinery except Electrical and Electronic 5.4 Electronic Goods Organic and Inorganic Chemicals 4.8 Organic and Inorganic Chemicals

Share 30.1 10.1 8.9 6.6 6.1 4.2

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Coal, Coke and Briquettes, etc. Professional, Scientific Controlling Instruments, Photographic Optical Goods Iron and Steel Metal ferrous Ores, Metal Scrap, etc.
ASSOCHAM Calculation

2.2 Transport Equipment

3.1

1.7 Iron and Steel 1.5 Coal, Coke and Briquettes, etc. Metal ferrous Ores, Metal Scrap, 1.5 etc.

2.9 2.7 2.7

II.

Evolution of Gold Policy A. Pre Liberalization

The gold policy until economic reforms in the early 1990s centred around the major objectives of discouraging people from purchasing gold, reducing domestic demand, regulating supply of gold, , curbing smuggling and black income and conserving foreign exchange. Some of the important characteristics of the gold policy that had been adopted over the years by the government until the liberalization process were1: Bullion imports and exports were banned under the Foreign Exchange Regulation Act, 1947. The proportional reserve system was replaced by the minimum reserve system, for purposes of note issue.

In a major effort to mobilise the vast gold reserves in the country, an issue of 15-year Gold Bonds at 6.5 per cent was made in November 1962. The bonds were issued in exchange for gold, gold coin, and gold ornaments. Subscriptions to these bonds totaled 16.30 tonnes. Forward trading in gold was banned in November 1962.

The diversion of savings into the bullion market was sought to be controlled by the promulgation of the Gold Control Rules in January 1963. The Rules prohibited manufacturing of gold ornaments of more than 14 carat purity. Individual gold holdings had to be declared. In July 1963, refineries were prohibited from manufacturing gold of more than 14 carat purity. Control over internal trade and distribution of gold by the Government was fully established in 1964.

A second attempt to garner gold was made in March, 1965 when a new series of 7 per cent Gold Bonds 1980 was issued. Opportunity was given to holders of unaccounted money to convert them into these bonds. The quantity raised was 6.1 tonnes.
1

Gold in the Indian Economic System by Dr.Y.V.Reddy, at the Gold Economic Conference organised by the World Gold Council at New Delhi on November 28, 1996.

A third series of gold bonds designated as National Defence Gold Bonds, 1980 at 6.5 per cent was issued in October 1965. Unlike the earlier two issues, which were repayable in Rupees (the value of gold being calculated at international prices) these bonds were redeemable in gold of standard purity at maturity. The quantity raised was 13.7 tonnes.

Strict gold control remained in force till November 1966, when the rules were amended, lifting the ban on the manufacture of ornaments of more than 14 carat purity. The amendments also placed ceilings on individual holdings and extended control over refineries and dealers. In September 1968, the Gold (Control) Act 1968, was passed establishing the scheme of gold control on a permanent statutory footing. Except for some minor modifications incorporated in the Act in 1969, 1972 and 1973, the structure of the Act did not undergo any change. The Voluntary Disclosure of Income and Wealth (Amendment) Ordinance, 1975 granted immunity from confiscation, penalty and prosecution under the Gold Control Act, 1968, to all disclosures of wealth and income in the form of gold within the stipulated period. There was a major shift in policy by the Central Government as reflected in the 1978-79 budget which strongly disapproved of smuggling operations, considered to be a consequence of the differential between the domestic and international gold prices. The Government that year undertook gold auctions, which was construed as an antiinflationary measure of raising resources to bridge the budget deficit which then was around Rs.1,050 crore. It was also felt that sale of gold from stocks held by the Government would curb smuggling to some extent. The Reserve Bank of India was chosen as the Governments agent in the sales operation. However, these auctions came in for criticism as it was concluded that this was not a practical proposition to either check smuggling or contain domestic prices. The Government thus discontinued the official auctions in October 1978.

B. Post Liberalization

During the early nineties a period when the Indian economy faced a severe Balance of payment crisis there has been a shift in the approach of the gold policy. The restrictive policies made way for a more a liberalised gold market. The role of a liberalized and developed gold market was in the interest of consumers had been realised and efforts were made to integrate the gold market with financial markets. Some of the key highlights of gold policy post liberalization are2:

In 1990 an amendment to RBI act was made, marking gold to market at regular intervals, Gold control Act (1968) repealed.

In 1993 provisions of FERA (1973) repealed. In 1997 a committee on Capital Account Convertibility (CCA) by RBI was established. This committee made following observations :

1) Gold related issues linked to Capital Account Convertibility 2) Liberalizing policy regime on gold 3) Develop transparent and well regulated market on Gold 4) Introduction of Forward trading and gold derivatives in India

RBI established criteria authorizing commercial banks to nominate a few state enterprises like MMTC as nominated agencies for importing Gold. In 1999 RBI allowed commercial banks to accept interest bearing gold term deposits against gold

Report on Gold NATIONAL MULTICOMMODITY EXCHANGE OF INDIA LIMITED

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III.

How Big are Indias Gold Imports?

A. Global Scenario In order to provide a more global picture of the size of gold imports and whether as to Indias obsession with gold is justifiable the study looks at the gold demand alongside some other key economic variables. (i) Gold Consumption and Size of the Economy

As per a consumer demand report by the World Gold Council3 the consumer demand figures in selected countries suggests: India accounts for nearly one-third of the total world demand for gold. Indian consumer demand for gold is 37.6 per cent more than that of China. Another major economy of the world USA does not even come close to the levels of consumer demand that are being witnessed in India, with consumer demand for USA being reported at 213.5 tonne. Moreover if we look at the demand for gold alongside the size of these major economies we see that: Indias GDP is no where closer to that of China and USA. In terms of percentage share Indias GDP is 27.7 percent of China and a meager 11.0 percent of USA. (Please refer to Table 3)

Gold Demand Trends Third Quarter 2011 , World Gold Council

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Table 3 Consumers Gold Demand vis--vis GDP Consumer demand in selected countries GDP 2010-11 12 month ended Q3'11* ( Tonnes) (US $ Trillion) Jewellery Total bar Total and coin invest India China Russia USA UK World Total 649.9 508.9 70 119.3 25.2 2018.2 409.1 260.8 94.2 1409.2 1059 769.7 70 213.5 25.2 3427.4 1.6 5.9 1.5 14.8 2.2

Source: Consumer Demand Figures taken from Gold Demand Trends Third Quarter 2011, World Gold Council, figures are provisional GDP figures taken from UNCTAD, GDP figures for 2010-11 are provisional

(ii)

Forex reserves comparison

A look at the forex reserves of some of the countries shows that: Indias forex reserves are 8.81 percent of Chinas forex reserves yet its gold demand is more than that of China by 37.6 percent.

Please refer to table 4 Table 4 Foreign Exchange Reserves (US$ Billion) Country Q3 2011 Brazil 348.0 China 3,223.0 India 283.8 Russia 472.5 United Kingdom United States
Source: World Gold Council

78.9 137.4
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(iii)

Gold as % of Forex Reserves

Inspite of India being the largest importer of Gold in the world, its share in total reserves of the country is lower than that of USA and UK. Please refer to Table 5 Table 5 Gold as a percentage of Total Reserves Country Brazil China India Russia United Kingdom United States
Source: World Gold Council Q3 2011

0.501 1.675 9.285 8.581 16.991 75.503

Therefore a look at the various economic parameters brings to surface the fact: That India is the leader in terms of Gold Demand however it lags behind other major economies in terms of other key economic variables.

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B. Domestic Scenario Gold Imports Vs Amartya Sens Priorities As per a Gold Council Report4 focusing on Indian Gold consumption indicates that Gold jewellery accounted for around 75 per cent of total Indian gold demand in 2009, the remainder being investment (23 per cent) and decorative and industrial use (2 per cent). However looking at the larger picture we all are well aware about the extent of poverty, illiteracy and the lack of social infrastructure that exists in India. Even, the Planning Commission in its Approach to the 12th Five Year Plan has laid emphasis on an inclusive model of growth. Ideally, inclusive growth should result in lower incidence of poverty, broad based and significant improvement in health outcomes, universal access for children to school, increased access to higher education and improved standards of education, including skill development. It should also be reflected in improvement in provision of basic amenities like water, electricity, roads, sanitation and housing.

Even, the noted economist Amartya Sen has acknowledged the importance of a holistic growth and advocated the thought that human development, as an approach needs to be the basic development idea thereby suggesting that it is advancing the richness of human life, rather than the richness of the economy in which human beings live. In view of this the study next tries to assess the size of Indian gold imports for the year 2010 -11 against two parameters: 1) State GDPs 2) Some of the key development and non-development expenditures of the Central and State Governments Comparison of size of State GDPs and Gold Imports We can see from the figures for the year 2010-11 that Indias gold imports were higher than the GDP figures recorded for 12 states.
4

India: heart of gold Revival, World Gold Council

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Please refer to Table 6 Table 6 State domestic product (Current Prices) 2010-11 State 2010-11 ( US $ Billion ) Maharashtra 205.9 Uttar Pradesh 117.7 Andhra Pradesh 113.5 Tamil Nadu 109.5 Karnataka 79.8 Rajasthan 60.7 Delhi 51.8 Haryana 51.6 India's Expected Gold Imports 2011-12 (US $ Billion) 50.0 Punjab 44.3 Bihar 42.6 Orissa 37.3 India's Gold Imports 2010-11 (US $ Billion) 33.9 Chhattisgarh 25.9 Jharkhand 21.3 Assam 20.8 Uttarakhand 15.5 Himachal Pradesh 10.5 Jammu & Kashmir 9.5 Chandigarh 4.1 Tripura 3.3 Meghalaya 2.9 Puducherry 2.6 Manipur 1.8 Sikkim 1.1
Source: State GDP figures taken from CSO Gold Import figures taken from RBI Exchange Rate is taken as Rs 50

Centre and States Expenditure vis--vis Gold Imports A look at the Budget Estimates of some of the key Development and Nondevelopment expenditures shows that it is only in education where the budgetary allocation is more than that of the gold import value for the year 2010-11. Please refer to Table 7

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Table 7 Centre and States Budgeted Expenditure Expenditure 2010-11 (US $ Billion) Education, art & culture 46.23 India's Gold Imports 2010-11 (US $ Billion) 33.9 Medical & public health and water supply & sanitation 16.44 Food Subsidy 11.70 Social security & welfare(P) 11.12 Fertiliser subsidy 10.00 Urban development 7.09 Housing 4.09 Family welfare 2.89 Posts & Telecommunications 0.11
Source: Development and Non-Development Expenditure taken from Ministry of Finance Gold Import figures taken from RBI Exchange Rate is taken as Rs 50

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IV.

High Levels of Gold Imports, Is it Sustainable??

In the present Section, we have examined Gold Import trends since Import Liberalization between 1999-00 to 2010-11. Thereafter we have tried to estimate Gold import trends under two projection scenarios. Scenario I: where we assume that Gold Imports will continue in the same compound annual growth rate as latest twelve years from 1999-00 to 2010-11. For Scenario II, we assume Gold import share in GDP to remain constant at 2010-11 level. Scenario I: Worst case of Gold import Gold import has been calculated on the basis of compound annual growth rate of period 2010-11 over 1999-00. CAGR for the period calculated 21.02 per cent on the basis of the Gold import calculated from 2011-12 to 2015-16 and GDP projected figure has been used from 12th plan draft report. For this scenario, assuming the gold import bill increases on the basis of CAGR rate the Gold import bill will be approximately US $ 100 billion by 2015-16. Please refer Table 8 Table 8 Comparison of Gold import with GDP at current price
(US $ Billion)

Gold Import Bill 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 4.2 4.1 4.2 3.8 6.5 10.5 10.8 14.5 16.7 20.7 28.6 33.9 41.0* 49.6* 62.6*

Gross Domestic product 450.5 460.2 477.8 507.2 599.5 661.3 765.6 872.8 1138.5 1150.2 1293.5 1603.2 1796.2# 2056.6# 2354.8#
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2014-15 2015-16

79.0* 99.7*

2696.3# 3096.3#

Source: RBI, CSO, Planning Commission Note: * ASSOCHAM calculation on the basis of CAGR #Planning commission calculation Yearly Exchange Rates have been used uptil 2010-11, thereafter exchange rate used is Rs 50

3.5

Gold import share in GDP at current price The graph indicates: Given the trends of twelve years, a similar projected trend shown an alarming rise in Gold Imports. Actual share in GDP shows an increasing trend Projected figures suggest an even steeper increase. Gold import and GDP share increased from 0.9 per cent (199900) to 2.1 per cent (2010-11) and on the basis of projected figure the share will be 3.2 per cent in 201516. At this rate Gold Imports should US $ 100 Billion.

Projected
Actual Gold import and GDP 3.0 share

2.5

2.0

1.5

1.0

0.5

0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Looking at the recent upsurge in gold imports the projected value seems to be conservative as the average rate of growth during the period 2008-09 to 2010-11 stands at 26.8 percent.

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Scenario II: Hopeful Trends GDP figure as projected in Planning Commissions 12th plan draft report have been used. The actual share of gold imports witnessed in the year 2010-11, (2.1 percent of GDP) has been used to calculate the projected gold import figures for the period 2011-12 to 2015-16. Gold import in 2010-11 was approximate US $ 34 billion, which was 2.1 per cent of GDP.Freezing the share of Gold imports in GDP at this level, Gold import should reach US $ 65.4 billion in 2015-16. Please refer Table 9 Table 9 Comparison of Gold import with GDP at current price
(US $ Billion)

Gold Import Bill 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 4.2 4.1 4.2 3.8 6.5 10.5 10.8 14.5 16.7 20.7 28.6 33.9 38.0* 43.5* 49.8* 57.0* 65.4*

Gross Domestic product 450.5 460.2 477.8 507.2 599.5 661.3 765.6 872.8 1138.5 1150.2 1293.5 1603.2 1796.2# 2056.6# 2354.8# 2696.3# 3096.3#

Source: RBI, CSO, Planning Commission Note: * ASSOCHAM calculation #Planning commission calculation Yearly Exchange Rates have been used uptil 2010-11, thereafter exchange rate used is Rs 50

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2.5

Gold import share in GDP at current price The graph indicates: Actual share in GDP shows an increasing trend and from 2011-12 to 2015-16 showing flat because the import of gold calculated on the basis of fixed share to GDP. Freezing 2.1 per cent share would yet mean Gold Imports US $ 65.4 billion by 2015-16, as the GDP rises by planning commission projection.

Actual Gold import and GDP share

Projected

2.0 1.5 1.0 0.5 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

At these levels, Indias Gold imports would be huge burden as the balance of payment and creates unsustainable presser on current account. On the other hand, this represents a massive stain in the countries investable resources. Weaning away domestic savings from Gold investment would assume important from this prospective

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V.

Issue

The foreign exchange resource that is used to import gold reduces the availability of this free exchange to finance the import of other commodities. Even the RBI in its review of macroeconomic situation has said Current Account Deficit is a cause of concern because of inelastic gold and oil demand. Chart 1 depicts the impact of gold imports on the current account balance position. The chart clearly shows that due to the high value of gold imports the current account deficit gets accentuated , whereas had there been no gold imports then in that case not only would have been the current account balance been much better but also there would have been current account surpluses for year 2004-05 right until 2007-08. (Also see Appendix 1) Chart 1 Impact of gold on Indias Current Account Balance
30000 20000 10000 US $ Million

0
-10000 -20000 -30000 -40000 -50000

CAB without Gold

CAB with Gold

Recently with the government increasing the import and excise duties on gold and silver means that both these commodities are set to cost more. The new duty structure would be based on

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value, not a fixed rate. The new rates (on ad valorem basis)- two per cent on 10 gm gold and six per cent on one kg silver, mean that importers will have to pay double the duty. This move made by the government is also targeted to address the issue of reducing dollar outflows due to gold imports, which are hurting the current account. However, looking at the pattern of gold consumption in India and the numerous factors that motivate people and institutions as indicated in the study earlier to seek gold investments it seems that just raising the import duties alone will not have the desired result of bringing down gold demand.

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VI.

Possible Way Out

What is required is to address the larger issue which is to encourage the substitution gold purchases with alternate investment options available in the financial sector which shall also help in increasing the productive capacity of the economy.

In order to achieve this objective some of the initiatives that can be taken are:

A. Increase the reach of Banks - growing demand for gold purchases in the country is an indication that households with high levels of savings are looking at options available to invest their savings. As per a World Gold Council Report5 India has one of the highest saving rates in the world; estimated at around 30 percent of total income, of which 10 percent is invested in gold. Therefore it is important that the financial sector taps into this huge saving reserve. Section VIII below provides our best option: KaratBars International. This is particularly true for the rural areas where according to the same World Gold Council Report only 21 percent of rural India had access to formal financial sources. Therefore lack of availability of alternate avenues of investment that might be resulting in heavy gold purchases. KaratBars International serves as today's perfect alternate avenue. B. Innovative means of alternate investments must be considered - It must be understood that it is easier for a rural person to buy gold jewellery than opening a deposit account in a bank, due to various documentary formalities that are required. In the competitive environment, banks have to contend with the transaction cost associated with servicing retail deposits and credit accounts.

The government can make use of its vast network of post offices in order to delivering financial services to the otherwise excluded sections.

India: heart of gold Revival, World Gold Council

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C. Liquidity quotient of alternate investment instruments - a prime reason behind increased gold purchase is its liquidity aspect, that is in case an individual requires money he can immediately sell his gold for cash. This is usually not the case with other financial products as redeeming them usually takes time. Information technology could play an important role in facilitating retail banking in rural areas. However, in rural areas low level of technology penetration coupled with low levels of literacy are a major obstacle for enhancing the outreach of IT enabled banking services. In this context, there is a need to recognize the role of fiscal empowerment relating to spending on social sector such as education. The government can also consider introducing highly liquid across the counter instruments with the government guaranting buybacks., e.g.: KaratBars International. D. Massive education campaign must be launched to create awareness amongst the public at large as to how unnecessary piling of gold stocks with households is not only adversely impacting the current account position of the economy but also what it is doing is increasing the level of black money circulation in the economy. This is happening because the purchase and sale of gold is being done in cash thereby hurting the government on two fronts. Firstly, the purchasing gold against cash gives an individual an opportunity to convert his black money into white. Secondly, the cash received by the seller also remains undeclared and thereby no tax will be paid. On top of this the gold imports are being financed by the hard earned foreign exchange. Therefore it is imperative for the government to educate the citizens of the country about the adverse impact of rising gold imports.

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Appendix INDIA'S BALANCE OF PAYMENTS (US $ Million)

Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Source: RBI Merchandise Exports 45452 44703 53774 66285 85206 105152 128888 166162 189001 182235 250468 Merchandise Imports 57912 56277 64464 80003 118908 157056 190670 257629 308521 300609 380935 Trade balance -12460 -11574 -10690 -13718 -33702 -51904 -61782 -91467 -119520 -118374 -130467 Invisibles 9794 14974 17035 27801 31232 42002 52217 75731 91605 79991 86186 Current account -2666 3400 6345 14083 -2470 -9902 -9565 -15737 -27915 -38383 -44281

INDIA'S BALANCE OF PAYMENTS EXCLUDING GOLD IMPORT (US $ Million)

Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Source: RBI Merchandise Exports 45452 44703 53774 66285 85206 105152 128888 166162 189001 182235 250468 Merchandise Imports 53790.4 52106.6 60619.1 73486.1 108370.3 146225.5 176208.1 240905.4 287795.4 271968.9 347059.3 Trade balance -8338.4 -7403.6 -6845.1 -7201.1 -23164.3 -41073.5 -47320.1 -74743.4 -98794.4 -89733.9 -96591.3 Invisibles 9794 14974 17035 27801 31232 42002 52217 75731 91605 79991 86186 Current account 1455.6 7570.4 10189.9 20599.9 8067.7 928.5 4896.9 987.6 -7189.4 -9742.9 -10405.3

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VIII. KARATBARS INTERNATIONAL : INDIA'S SOLUTION

THE BUSINESS OPPORTUNITY OBJECTIVE Earn passive, residual income while accumulating gold Gold (1) gram Karatbar Card CONSIDER ALL OF THE FOLLOWING... Most customers when looking to BUY Gold, ANY gold, usually deal with RETAIL. All they typically see or know to compare is price. Some retail companies may give them a special discount for a purchase. But it's still retail without other financial rewards. When the deal is done, IT'S ALL DONE. Most dont know or understand all the features and benefits included in KARATBARS, and may jump to conclusions. They don't know or want to know! For many, it may not be that important to them. But for those who are real opportunity seekers, this is a GOLDEN OPPORTUNITY a once in a lifetime program WHY? Because they have NEVER been exposed to anything like this before. KARATBARS is a Category-Creator. NO one is doing what Karatbars is doing globally. So LOGICALLY, without some explanation, someone may ASSUME that Karatbars is in some kind of "BAKE SALE" and simply include it with other "gold" companies. It's LOGICAL...But INVALID. So, why should one NOT look at only price to make an accurate, informed complete comparison? Karatbars has the lowest price for their gold category. Compare BMW to BMW, not Ford to BMW. Google: kinebar grade 1 gram gold. But before we get into all the reasons why owning a 1-gram Karatbar makes far more sense in this economy than owning a 1-ounce bar-even though the same amount of gold may be lower in price-lets compare prices of several 1-gram bars: As of mid-February, 2012, when $1 (USD) exchanges for 1.32 Euro, the price of a 1-gram Karatbar is approximately $78. It's not what it costs; it's what the market says it's worth. Cost and worth are two different things, much like an acre of land on the U.S west coast in Malibu is worth more than an acre of land in Iowa. Karatbars is "prime real estate": It costs less than comparable 1-gram gold bullion bars of this quality; it resells for more; and it holds its value out of the vault. POINT #1 KARATBARS are private issue (produced by a private refinery and mint and exclusive to Karatbars) 999.9% 24-carat Gold Bullion... NON-sizable under the current International Bullion Laws and U.S. Law. Gold coins that have minted and issued from any government can be recalled to issuer (the government). All gold from Karatbars is privately issued and CANNOT be confiscated by any so-called authority. Karatbars gold is Private Issue bullion, 999.9% Fine Gold, each Karatbar weighs in at 1.01 grams Transactions are completed offshore, gold is vaulted offshore, and all transaction records belong to Karatbars Karatbars carry the LBMA certification from the Atasay Refinery which lends them to be "Good for Settlement of Debt" http://lbma.org.uk/pages/index.cfm You, as an Affiliate, are responsible to report any earnings to the local authorities(country, state, etc), (Terms & Conditions).

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Karatbars DOES NOT REPORT to any Affiliate earning to any government body. Karatbars is an Offshore E-Commerce company with an Affiliate marketing program. Karatbars does not apply to the FTC (NOT an MLM) or the BBB (Domestic Rating Agency), all are which come under U.S. government jurisdiction, or any other jurisdiction not held under the International Bullion Laws. Karatbars does not apply to the Securities Exchange Commission(SEC), since gold is not considered a financial instrument (paper) Karatbars does not give legal, tax, or investment advice and all Affiliates should not either. Karatbars falls under the International Bullion Laws set forth by the World Trade Organization under the Harmonious Tax Code. ANY and ALL gold purchases and gold coin purchases that are done in USA are RECORDED. The U.S. government knows exactly who has what. Most coins are PURE gold on the ALLOY Standard - 91.9% - because 24-carat is too soft. You do not actually OWN any government-issued coins; you are merely THE BEARER of the coins. Governments in financial duress can "recall" gold coins and only pay bearer FACE VALUE only. Ask yourself this: "Where do you think the U.S. government is going get the gold to restock THEIR shelves?" Karatbars ingots weigh in at 1.01 grams, above the legal limit if a country tries to exercise a VAT Tax on 1-gram bars. We have a niche market of transaction-friendly weights which make it a viable form of payment and exchange, under ALL economic circumstances, in ALL countries. Karatbars accounts are private and SECURE, more so than the FDIC, CDIC, or ANY gold sales in the USA or Canada. 100% of all funds you deposit into your Karatbars account are used to buy gold bullion. There are no extra fees Karatbars does not report any Customer transactions under $10,000 to any government agency in any country. And Karatbars does NOT ask for a Social Security Number (SSN) or Social Insurance Number (SIN). Your identity is kept confidential for your account as long as you are NOT charged and convicted with money-laundering, involved in drug trafficking, or other international crimes under the U.S. Patriot Act. All transactions are ledgered by username and account number. When verified by German authority auditors, you only need to verify your account number, deposit, and whether the deposit was transferred into physical gold and transferred to the vault or shipped to you, the Customer. Germany is possibly the toughest country in the European environment in which to do business. Karatbars International is an offshore (Germany) e-commerce company with an optional Affiliate Marketing program. Karatbars International is NOT governed by the USA. It is on the same level of trade existence that the U.S. government uses when dealing with any other country. We merely have our own personal Karatbars accounts, and we can refer others to get their own private Karatbars account. We do not sell financial paper instruments, nor does Karatbars. Affiliates do not sell gold; Karatbars does, OFFSHORE. SOME licensed gold resellers do resell Karatbars. Only Karabars account holders can make referrals, and we are rewarded for referring others. New Account holders can get a Karatbars account only by being referred by a Karatbars Affiliate account holder. Although we resemble a leveraged type of marketing structure, we are NOT considered MLM in any country. Karatbars is an e-commerce Affiliate business model. Our Compensation Plan pays out only when paper money is exchanged into gold money. That's it. There are NO enrollment fees, etc.

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POINT #2
Karatbars in 1-gram weights have many more benefits than gold in 1-ounce weights. They are both gold, but it's like comparing an apple to a rock! You CANNOT compare by price. The features and benefits are simply too far apart. USE GOLD TO BUY GOODS AND SERVICES, NOT AS AN INVESTMENT! The majority of those who look at gold will ALWAYS start by comparing price, thinking the only reason to own gold would be as an investment. It is not. They do not understand that one ounce of gold is one asset class, and one gram of gold is a totally different asset class, even though they are both gold. Even though they are both gold, the benefits of owning a gram of gold compared to owning an ounce of gold are significant. Karatbars is about owning 1-gram gold bullion ingots that you could use as a form of exchange, much like you use paper money and credit/debit cards. It would be much more difficult doing that with larger weights of gold and certainly not with a 1-ounce gold coin. Following are things to consider when buying gold: IS IT REAL? KARATBARS CANNOT BE COUNTERFEITED Gold can and is being counterfeited. In order to know the gold is not fake, one must sell that gold to a gold dealer who has the tools to confirm it is pure. With Karatbars, ANY merchant who is taught what to look for with the naked eye can quickly and easily determine that it is not fake because every Karatbars has: The stamp of the London Bullion Market Association(LBMA) Atasay Refinery on the gold. The signature of the Atasay Refinery's Assayer on the card. An embossed serial number that is unique to that particular Karatbar. The Refinery's unique hologram covering the entire back of the gold. You want to own 1-gram Karatbars so that your gold does not need to be sold and converted back to paper money in order to get some future use out of them. BUY-BACK PRICE With all weights of gold there is a buy-back price that's less than the sell price. With Karatbars there are MANY more options available than simply selling them back. Use them to buy goods and services from the many Merchants who accept them as payment. Post them in the Karatbars Member Marketplace at or near the Karatbars daily posted retail price. List them in any of the many Karatbars Affiliate chat rooms to sell at or near the current retail price. Sell back to Karatbars at a higher price than you would get from any gold dealer. Only Karatbars allows one to find a way to get at or near the current day's retail value when ready to dispose of some. NO NEED TO USE MORE THAN IS NECESSARY If you own an ounce of gold, and need only a few hundred dollars, you will need to sell the whole ounce. If you have high inflation, you will want to leave as much as possible in gold. The inconvenience of finding a dealer willing to give you a fair price without having to stand in line etc., is something to consider as well. Karatbars (1-grams) eliminates the need to convert to cash or use more than is required at that time. You cannot chip off a piece from an ounce and expect anyone to give you just that amount in paper cash or goods and services. THE MASSES CANNOT AFFORD TO BUY IN LARGE AMOUNTS Karatbars bring gold to the masses. Almost everyone can afford to pay approximately $65 at a time (weekly or monthly, whatever your budget can afford). EARN FREE GOLD Anyone, without ANY fees or costs, is able to introduce others to Karatbars and earn a commission. Yes, you can buy 100 grams of gold or an ounce if you choose. But why not, with very little effort, introduce others and have your gold bought with commissions earned?

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POINT #3 KaratBars Gold has ALL ther bells and whistles on it in its standard feature.
Produced by an LBMA-certified "good delivery" refinery. See http://LBMA.org.uk (Click on "Good Delivery " tab / Gold List. Scroll down to Turkey. Click "Atasay..."), Karatbars are good for "settlement of debt" worldwide. Do not take the LBMA-certification lightly: It takes 3 years of zero issues for a refinery to get LBMA-certified. Our Karatbars cannot be counterfeited, and are verifiable by obvious and instant inspection. Free storage abroad, in various geographic locations. Low-cost shipping (about $24 for up to 100 grams) if you want your Karatbars delivered to you. Or you can have them moved to your own vault for an additional fee of approximately 2/10ths of a Euro per gram. Our company subsidizes the portion of the shipping cost that ensures the shipment reaches the Customer's designated destination. One insurance is through SecurLog, as they record on video every single packaging for delivery and the actual card numbers, etc. sealed. And SecurLog has their own private insurance company. Plus, SecurLog has their own on-site Insurance. They are recognized by the World Gold Council, one of the largest in thegold industry. Once your Karatbars leave the company's hands, they are double-insured by both Karatbars and SecurLog. They are shipped via FedEx. Large deliveries are done by G4S, the largest global armored delivery company in the world. The extremely high affiliate marketing internal payout (14.5% on the 100 gram Purchase Plans) allows Karatbars International to prepare for infrastructure labor and expansion. On one-time purchases, payout is 5.5%. We have "Green Gold: Karatbars Green Technology Extraction Process uses NO mercury or cyanide. This makes them a serious TACTICAL PLAYER for gold production globally. We are recommended by Bund de Sparer, a German independent consumer watchdog organization: http://www.bds-deutschland.de/a/index.php/empfehlungen/silber-und-gold-anlagen/515-karatbars All Purchase Plan Agreements (agree to buy 100 grams over an open-ended timeframe) have a 4-stage process. There are no chargebacks. And there is even a buy-back for any purchase plan cancellations. Karatbars are stored in vaults, not in circulation or around circulation like a savings deposit vault of a regular bank. They are NOT held as collateral for something else like a prime funding venture or anything like that. If for some reason you cannot fully trust an offshore account then get your Karatbars delivered directly as a one-time purchase, right now. Gold deposits are stored in large bars until ready to be minted into card denominations of your choice (1 gm, 2.5 gm, 5 gm ingot cards). Understand: To exchange into gold is one thing; to exchange out of gold is another. Karatbars is the simple, no-nonsense, worldwide solution to a full-presence answer to both types of exchanges. Karatbars offers a multi-faceted EXIT strategy unlike any other gold source. Karatbars International will buy back your Karatbars with the guaranteed best buy-back price. You can sell to other Karatbars Customers or Affiliates. Use Karatbars to buy goods and services within the Acceptance Points Network (merchants). Soon, we will be able to exchange fractions of a gram online, not using the cards. Other major financial institutions see us a reliable financial partner; for example, The Vatican bought and branded 100 kilograms of our gold and branded it with our Karatbars. NO ONE can doubt that the Vatican is a major financial giant worldwide. The Vatican doesn't get involved with hokey companies at all. Period. This is a great program to introduce to churches, organizations and non-profits to help them raise funds! Just think; their members can provide revenue to the organization by ordering Karatbar cards for their own savings plan .. brilliant! The members save and the organization gets revenue!

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We have made many presentations and expect to produce more Affinity Cards like the Pope cards. Queen Elizabeth, Virgin Airways, Football Teams, Hip-Hop artists, several churches and more are considering a private labelled Karatbar for themselves. We are just getting started.

Pope John Gold Karatbar Card (1) gram

Remember: EARNING FREE GOLD is better than buying it at ANY discount.

Gearing Up for the Next Big Gold Boom .. http://investmentu.com/latest-research/report/next-gold-boom.html THIS PROGRAM IS GOING TO BE A GAME CHANGER! NOTHING ELSE LIKE IT!

Why Karatbars? CONSIDER ALL OF THE FOLLOWING... Most customers when looking to BUY Gold, ANY gold, usually deal with RETAIL. All they typically see or know to compare is price. Some retail companies may give them a special discount for a purchase. But it's still retail without other financial rewards. When the deal is done, IT'S ALL DONE. And without knowing all the features and benefits included in KARATBARS, they may jump to conclusions. They don't know. For many, it may not be that important to them. But for those who want the facts will get them. WHY? Because they have NEVER been exposed to anything like this before. KARATBARS is a Category-Creator. NO one is doing what Karatbars is doing globally. So LOGICALLY, without some explanation, someone may ASSUME that Karatbars is in some kind of "BAKE SALE" and simply include it with other "gold" companies. It's LOGICAL...But INVALID. So, why should one NOT look at only price to make an accurate, informed complete comparison? Karatbars has the lowest price for their gold category. Compare BMW to BMW, not Ford to BMW. Google: kinebar grade 1 gram gold. But before we get into all the reasons why owning a 1-gram Karatbar makes far more sense in this economy than owning a 1-ounce bar-even though the same amount of gold may be lower in price. Lets compare prices of several 1-gram bars:

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Prices for KARATBARS - Apples to Apples

When you're thinking about the price of KARATBARS gold bullion and you somehow come to the conclusion that the prices are too high, you haven't compared apples to apples. It's like this: A Chevy Cavalier is a car just like a Corvette is a car. Bottom line is they're both cars. But the fact is one costs more, is worth more, and retains its value better. Comparing Prices With KARATBARS Gold Bullion The first thing in comparing prices of ANY commodity is understanding that you must do an apples-to-apples comparison. For example, if you are going to buy a pint of milk you must compare the price with other single pints of milk. What you DON'T do is find the best price for a GALLON of milk (which, for the sake of discussion, lets say is $4) and then divide $4 by 8 pints (which is 50 cents per pint), and then compare that price to buying a single pint. We all understand what it means to buy in bulk. As with any product, there is what is commonly called volume discounts. The reason bulk prices are less per ounce is very simple: there is more labor cost to produce several units verses one unit, but the flexibility of use benefits are significant with 1-gram gold over larger weights. To get an accurate price comparison (not taking into consideration the MANY benefits that come with owning a flexible transaction-friendly 1-gram Karatbar), you cannot take the spot price for an ounce of gold and divide it by 31.1. (There are roughly 31.1 grams per troy ounce of gold.) And you cannot take a gram price and multiply it by 31.1. You must price Karatbars gold bullion by the gram against other similar-quality gold that's sold by the gram to make an accurate comparison. Is The Price of KARATBARS Gold Bullion In Line With What's Out There? With gold and silver, you pay more for smaller weights regardless of your source. Just like you pay more for 1 can of soda or beer than you would pay for a case of 24 cans. The more you buy, the better price you get. If you want to be accurate and compare apples to apples, ask your broker what his/her price is for a 999.9-grade 1-gram gold bullion produced by an LBMA-certified refinery? No one can touch Karatbars price! Karatbars has consistently maintained a 2-4% better price. Even if a broker could match or beat Karatbars prices, will they give you free gold for referring others?!? I think not. And all require you to buy many 1-gram bars even if you only want to buy one and although they may advertise they can deliver, they are often out of stock or cannot actually deliver gold in one gram weights. Check the prices and compare for similar quality and same currency: Swiss PAMP Gold Bar - Weight 1 Gram UBS Gold (Kinebar) - Weight 1 Gram KARATBARS - Weight 1 Gram KB's program is NOT for traders. It is for savers and many ask "what does it cost"? This is a poverty mentality because a wealthy mentality asks "what is it worth"!

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As of mid-February, 2012, when $1 (USD) exchanges for 1.32 Euros, the price of a 1-gram Karatbar was approximately $78. It's not what it costs; it's what the market says it's worth. Cost and worth are two different things, much like an acre of land on the U.S west coast in Malibu is worth more than an acre of land in Iowa. Karatbars is "prime real estate": It costs less than comparable 1-gram gold bullion bars of this quality; it resells for more and it holds its value out of the vault. POINT #1 KARATBARS are private issue (produced by a private refinery and mint and exclusive to Karatbars) 999.9% 24-carat Gold Bullion... and are not subject to seizure under the current International Bullion Laws and U.S. Law. Gold coins that have minted and issued from any government can be recalled to issuer (the government). All gold from Karatbars is privately issued and CANNOT be confiscated by any so-called authority. Karatbars gold is Private Issue bullion, 999.9% Fine Gold, each Karatbar weighs in at 1.01 grams Transactions are completed offshore, gold is vaulted offshore, and all transaction records belong to Karatbars

Karatbars carry the LBMA certification from the Atasay Refinery which lends them to be "Good for Settlement of Debt" http://lbma.org.uk/pages/index.cfm ANY and ALL gold purchases and gold coin purchases that are done in USA are RECORDED. The U.S. government knows exactly who has what. Most coins are PURE gold on the ALLOY Standard - 91.9% - because 24-carat is too soft. You do not actually OWN any government-issued coins; you are merely THE BEARER of the coins. Governments in financial duress can "recall" gold coins and only pay bearer FACE VALUE only. Ask yourself this: "Where do you think the U.S. government is going get the gold to restock THEIR shelves?" Karatbars ingots weigh in at 1.01 grams, above the legal limit if a country tries to exercise a VAT Tax on 1-gram bars. We have a niche market of transaction-friendly weights which make it a viable form of payment and exchange, under ALL economic circumstances, in ALL countries. Karatbars accounts are private and SECURE, more so than the FDIC, CDIC, or ANY gold sales in the USA or Canada. 100% of all funds you deposit into your Karatbars account are used to buy gold bullion. There are no extra fees. Karatbars does not report any Customer transactions under $10,000 to any government agency in any country. And Karatbars does NOT ask for a Social Security Number (SSN) or Social Insurance Number (SIN). Your identity is kept confidential for your account as long as you are NOT charges and convicted with money-laundering, involved in drug trafficking, or other international crimes under the U.S. Patriot Act. All transactions are recorded by username and account number. When verified by German authority auditors, you only need to verify your account number, deposit, and whether the deposit was transferred into physical gold and transferred to the vault or shipped to you, the Customer. Germany is possibly the toughest country in the European environment in which to do business. Karatbars International is an offshore (Germany) e-commerce company with an optional Affiliate Marketing program. Karatbars International is NOT governed by the USA. It is on the same level of trade existence that the U.S. government uses when dealing with any other country. POINT #2 Karatbars in 1-gram weights have many more benefits than gold in 1-ounce weights. They are both gold, but it's like comparing an apple to a rock! ** **You CANNOT compare by price. The features and benefits are simply too far apart.

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USE GOLD TO BUY GOODS AND SERVICES, NOT AS AN INVESTMENT!

The majority of those who look at gold will ALWAYS start by comparing price, thinking the only reason to own gold would be as an investment. It is not. They do not understand that one ounce of gold is one asset class, and one gram of gold is a totally different asset class, even though they are both gold. Even though they are both gold, the benefits of owning a gram of gold compared to owning an ounce of gold are significant. Karatbars is about owning 1-gram gold bullion ingots that you could use as a form of exchange, much like you use paper money and credit/debit cards. It would be much more difficult doing that with larger weights of gold and certainly not with a 1-ounce gold coin. Following are things to consider when buying gold: IS IT REAL?** ** KARATBARS CANNOT BE COUNTERFEITED Gold can and is being counterfeited. In order to know the gold is not fake or counterfeit, one must sell that gold to a gold dealer who has the tools to confirm it is pure. With Karatbars, ANY merchant who is taught what to look for with the naked eye can quickly and easily determine that every Karatbars is not a fake because it has: The stamp of the London Bullion Market Association (LBMA) Atasay Refinery on the gold. The signature of the Atasay Refinery's Assayer on the card. An embossed serial number that is unique to that particular Karatbar. The Refinery's unique hologram covering the entire back of the gold.

You want to own 1-gram Karatbars so that your gold does not need to be sold and converted back to paper money in order to get some future use out of them. BUY-BACK PRICE Withal weights of gold there is a buy-back price that's less than the sell price. With Karatbars there are MANY more options available than simply selling them back. Use them to buy goods and services from the many Merchants who accept them as payment. Post them in the Karatbars Member Marketplace at or near the Karatbars daily posted retail price. List them in any of the many Karatbars Affiliate chat rooms to sell at or near the current retail price. Sell back to Karatbars at a higher price than you would get from any gold dealer.

Only Karatbars allows one to find a way to get at or near the current day's retail value when ready to dispose of some. NO NEED TO USE MORE THAN IS NECESSARY If you own an ounce of gold, and need only a few hundred dollars, you will need to sell the whole ounce. If you have high inflation, you will want to leave as much as possible in gold. The inconvenience of finding a dealer willing to give you a fair price without having to stand in line etc., is something to consider as well. Karatbars (1-grams) eliminate the need to convert to cash or use more than is required at that time. You cannot chip off a piece from an ounce and expect anyone to give you just that amount in paper cash or goods and services. THE MASSES CANNOT AFFORD TO BUY IN LARGE AMOUNTS Karatbars bring gold to the masses. Almost everyone can afford to buy $65 at a time. 33

Karatbars are stored in vaults, not in circulation or around circulation like a savings deposit vault of a regular bank. They are NOT held as collateral for something else like a prime funding venture or anything like that. If for some reason you cannot fully trust an offshore account then get your Karatbars delivered directly as a one-time purchase, right now. Gold deposits are stored in large bars until ready to be minted into card denominations of your choice (0.5 gram, 1 gm, 2.5 gm, and 5 gm ingot cards. Until Karatbars has expanded to every country we can possibly be in, we only offer 1-gram ingot cards. Understand: To exchange into gold is one thing; to exchange out of gold is another. Karatbars is the simple, no-nonsense, worldwide solution to a full-presence answer to both types of exchanges. Karatbars offers a multi-faceted EXIT strategy unlike any other gold source. Karatbars International will buy back your Karatbars with the guaranteed best buy-back price. You can sell to other Karatbars Customers or Affiliates. Use Karatbars to buy goods and services within the Acceptance Points Network(merchants). Soon, we will be able to exchange fractions of a gram online, not using the cards. Other major financial institutions see us a reliable financial partner; for example, The Vatican bought and branded 100 kilograms of our gold and branded it with our Karatbars. NO ONE can doubt that the Vatican is a major financial giant worldwide. The Vatican doesn't get involved with hokey companies at all, Period. We have made many presentations and expect to produce more Affinity Cards like the Pope cards. Football Teams, Hip-Hop artists, several churches, an Airline, and more are considering a private labeled Karatbar for themselves. We are just getting started. Remember: EARNING FREE GOLD is better than buying it at ANY discount. POINT #3 Karatbars Gold has ALL the bells and whistles on it in its standard feature. Produced by an LBMA-certified "good delivery" refinery. See http://LBMA.org.uk (Click on "Good Delivery tab / Gold List). Scroll down to Turkey. Click "Atasay..."), Karatbars are good for "settlement of debt" worldwide. Do not take the LBMA-certification lightly: It takes 3 years of zero issues for a refinery to get LBMA-certified. Our Karatbars cannot be counterfeited, and are verifiable by obvious and instant inspection. Free storage abroad, in various geographic locations. Low-cost shipping (about $20 for 40 grams) if you want your Karatbars delivered to you. Or you can have them moved to your own vault for an additional fee of approximately 2/10ths of a Euro per gram. Our company subsidizes the portion of the shipping cost that ensures the shipment reaches the Customer's designated destination. One of the insurance is through SecurLog, as they record on video every single packaging for delivery and the actual card numbers, etc. sealed. And SecurLog has their own private insurance company. SecurLog has their own on-site Insurance. They are recognized by the World Gold Council, one of the largest in the gold industry. Once your Karatbars leave the company's hands, they are double-insured by both Karatbars and SecurLog. They are shipped via FedEx. Large deliveries are done by G4S, the largest global armored delivery company in the world. The extremely high affiliate marketing internal payout (14.5% on the 100 gram Purchase Plans) allows Karatbars International to prepare for infrastructure labor and expansion. On one-time purchases, payout is 5.5%. We have "Green Gold: Karatbars Green Technology Extraction Process uses NO mercury or cyanide. This makes them a serious TACTICAL PLAYER for gold production globally. 34

We are recommended by Bund de Sparer, a German independent consumer watchdog organization: http://www.bds-deutschland.de/a/index.php/empfehlungen/silber-und-gold-anlagen/515-karatbars Emory Miles www.SecureYourOrder.com EmoryMiles@SecureYourOrder.com www.karatbars.com/shop/?s=kingmidas www.karatbars.com/k-exchange/?s=kingmidas Karatbars International GmbH

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