Everything that glitters is GOLD..

Gold surged to a record high for the fourth day running after Diwali as it was pushing northwards at $1420, fuelled by renewed concern over high sovereign debt in euro zone countries such as Ireland and Greece and inflationary pressures globally.

 In India despite trading at Rs. 20525/10 gms the yellow metal stills tempts investors. In October alone the world’s largest buyer of gold – India, 44 tons of gold was delivered.

According to market experts, liquidity is being thrown in the market place; dollar is being debased while Asian markets are keeping a buy status on dollars to keep their currencies cheap which in-turn is benefiting hard assets.

Gold prices have climbed by 5% since the US Federal announced its plans to purchase $600 billion worth of government bonds. Seasonal high demands overlooking marriage season ahead are all set to take Gold rally to unseen levels. Truly said, “Everything that glitters is GOLD”.

Source: Multiple

Expect some extraordinary gains on this ‘Mahurat trading’

With the festival season well under way and Diwali just round the corner, it is that time of the year again, when “feel-good” is thick in the air. Some of us, who believe in work-life balance (with a tilt towards the right), hardly need prodding to put in that leave application — we try to make the most of the string of holidays accompanying the biggest festival of them all in India.

The coming week is one big fat moolah-making opportunity. Businesses of all hues and sizes are going all-out with their special-offer and discount-sale spins.

The commencement of the traditional New Year “Samvat” is marked at the bourses by a special trading session known as “Muhurat trade”. With many broking establishments opening new books of accounts on the big day, symbolic orders (mostly buys) are placed in the Muhurat trade to mark fresh trade in the New Year. The hope is that a good start will set the tone for the year to follow. After all, well-begun is half-done. This year, November 5 heralds the beginning of Samvat 2067, and in keeping with time-honored traditions, the stock exchanges have announced a special one-hour trading session this evening.

With the sharp run-up over the past year and half, the market is no longer cheap and a lot many positives seem to have been priced in. But as always, there will always be the hidden gems, which the discerning investor should be able to dig out with effort and some luck.

On that note, here's wishing all of you a cracker of a Diwali!

Source :  Buisness Line

What are gold ETFs?

What is gold ETF’s?

Gold ETF is a financial instrument like a mutual fund whose value depends on the price of gold. As the price of gold rises, the price of the ETF is also expected to rise by the same amount.

Similarly, a fall in the price of gold will also be reflected by a drop in the price of the ETF. However, unlike a mutual fund, the units of gold ETF have to be purchased or sold on the stock market.

Merits of investing in Gold ETFs :

Gold ETFs have the advantages such as lack of making charges, impurity risk, resale hassles, absence of wealth tax and long-term capital gains tax.

According to financial experts, investors can invest a small part of their portfolio in this fund for the purpose of diversification and hedging.

Things like refrigerator, microwave oven, computers and ice-creams to be used to measure WPI!

You know what's common to Ovens, Jewelry, Ice-cream, Towels, Washing Machines, Footballs & VCD players?

Answer: They are some of the things the government will now use to calculate wholesale inflation.

Some key important things that you must know about the new wholesale price index:

The base year against which the price rise is measured has been advanced by a decade from 1993-94 to 2004-05.

The new WPI index would concentrate more on accuracy and indication about the actual price movement in real time.

The new series would comprise of different weight-age levels, relative to the changes in the economy over a period of time. For instance, the weight of manufactured products would surge from 63.74% as per 1993-94 base price levels to 64.97% now.

Interestingly, the new WPI index now also includes the more commonly used items such as refrigerator, washing machine, microwave oven, computer and Television sets – which have now turned into basic needs, from wants. In fact, even Consumer items widely used by middle class such ice-cream, mineral water, readymade and instant food products, canned meat, leather products, dish antenna and even precious metals like gold and silver finds its place in the new index.

India Adds to the Glitter!

Gold prices touched a record as high as Rs 19.145 per ten grams in the last few weeks as the demand for the yellow metal continued to be strong.

Even in an uncertain global economic situation gold seems to be the preferred destination of investors’ money. Besides the individual investors there are indications that even big pension funds and central banks, which are getting worried about the government bonds, are also actively buying gold.

According to the World Gold Council India has been the largest gold market in terms of Volume. Around 18,000 tons of gold sits in the hands of private Indian consumers.
The retreat of good monsoon and arrival of festivals the gold demand for gold is further expected to rise.

What is keeping the Indians glued to gold?
Basically, investors are looking to protect themselves against inflation, currency and market volatility. With the ongoing economic volatility gold offers retail investors simplicity, transparency and security in highly volatile markets.


Source: Outlook money (22nd Sept)