Gold and silver touched all-time highs in 2011

Continuing their record-breaking spree, gold and silver galloped to all-time highs in 2011 on strong demand for precious metals considered as a 'safe-haven investment' in times of economic turmoil and rising inflation.

Gold (99.5 per cent purity) crossed the Rs 29,000 per 10 grams-level to a historic high of Rs 29,155 per 10 grams on December 8, 2011, on good local demand in view of the marriage season coupled with investment buying due to weak equity markets. Pure gold (99.9 per cent purity) also logged a fresh peak of Rs 29,280 per 10 grams during the year.

Silver (.999 fineness) prices hit an all-time high of Rs 75,020 per kilogram on April 25, 2011, on heavy speculative and investment-driven buying in line with global markets, where the metal rose to a fresh 31-year high. The metal witnessed a global rally amid speculation of a supply shortage. Furthermore, successful launching of E-silver by the National Spot Exchange Ltd sharply boosted the speculative nature of the metal.

The domestic market witnessed relentless buying in precious metals due to global volatility in view of escalating geo-political tensions across West Asia, the subsequent impact on crude prices, sustained weakness in world equities, higher inflation and concerns over global economic growth. In May, global markets witnessed a free-fall in prices of the precious metals as speculators dumped their long positions after metal exchanges hiked the margin requirement several times.

Silver ready (.999 fineness) was trading at Rs 52,285 per kg on December 27, nearly 11 per cent higher vis-a-vis last year's close of Rs 47,030.00 per kg. Standard gold (99.5 per cent purity) also flared up by about 34 per cent to Rs 27,500 per 10 grams on December 27, 2011, from Rs 20,585 per 10 grams on December 31, 2010. Pure gold (99.9 fineness) was quoted at Rs 27,630 per 10 grams on December 27, 2011, as against Rs 20,680.00 per 10 grams at the end of last year.


Source: www.rediff.com
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Gold – The Solution for All Investment!

In this festive season the rise in price of gold has been a piece of worry and has grown into a cause of worry for many investors. In the past 2 weeks many have shunned buying gold and the traders are lamenting the lack of foot falls and are claiming that the high rise is affecting the affordability of buyers.

Due to the less demand of gold, the dealers and jewelers in India have lined up to flock half gram gold coins and leaf. Many have come up with innovations and schemes to tap the rural market.

One of the largest gold dealers in Mumbai has launched the half gram gold coins which are tamper proof and are getting demand from small time investors.

Another gold dealer said that the customers are now showing interest in these half gram gold coins as 10 gram gold is not affordable at this point of time. The price of yellow gold has slid down by 8% from a high $608 for 10 grams in the previous week. The investors are hesitating even after a 3% dip in prices in the current week.

Due to the rise in prices of gold, the fresh buying of ornaments has reduced even though many families and communities are getting ready for marriage.

The gold prices that have gone up by 42% in Mumbai and the salaries still being the same with inflation going high, the customers can rarely afford the price hike, said a gold trader. To continue in keeping the customers purchasing gold in small amounts, the traders and jewelers houses have come up with an innovation to take things forward. The traders in Mumbai have started the half gram gold coin and gold leaf that weighs 100 milligrams campaigns.

This idea was induced by FMCG companies that sell soaps an shampoos in small sachets in villages and rural areas who aspire to have similar privileges.

The traders say that the investors would be keen on purchasing 10-20 gold leaves which they would use later for jewellery or gift.

The main purpose of these traders is to have customers coming to their stores and purchase gold even when the prices are high.

An all time high for gold

Gold roared to an all time high of Rs 23,620 per 10 grams by adding Rs 200 in the national capital today on increased buying by stockiest and investors, driven by a record rally in global markets.

Silver moved up by Rs 500 to Rs 59500 Gold marched to a record of $1,624.30 an ounce by adding 1.4 per cent overseas, after US lawmakers failed to reach an agreement on raising the federal debt limit, increasing concerns of a US default and boosting demand for the metal.

In line with a general firming trend, silver ready rose by Rs 500 to Rs 59,500 per kg and weekly-based delivery gained Rs 805 to Rs 60,270 per kg.

Source: http://www.rediff.com/business

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

Indian stock market becomes the show stealer of the world!

Indian shares have entered a new bull market with a 20% gain from 2010 lows and so have other emerging markets as investors from developed nations chase returns.

It is believed that rally may continue as central banks in the west keep interest rates at record lows, forcing to borrow cheap and invest in highly-yielding emerging markets.

What’s driving the Indian stocks?
Foreigners are flocking to most emerging markets, including India since returns are higher as compared to other countries.
Indian companies earning growth would be sustained due to domestic demands where consumers don’t suffer from high debt, unlike economies in the west.

Which sectors are likely to do well?
Banks, Capital goods, Real estate and Metals are preferred picks of traders since they provide high returns in Bull Market.

How long will the rally last?
As long as the US fed and European central bank keep interest rates low, or west plunges into recession again.

What are the possible downsides?
Interest rates may go up as inflation accelerates which in turn could reduce demand.

Source : ET

Buying spree lifts gold premiums; Indian jewellers rejoice

Indian gold jewellers rushed to replenish stocks ahead of religious festivals and other physical buyers in Asia snapped up bullion after prices fell to their weakest in more than a month, dealers said on Wednesday.

Steady physical demand led to supply tightness, pushing up premiums for gold bars in bullion trading centres of Singapore and Hong Kong. Dealers also saw purchases from consumers in China, Thailand and Indonesia. Gold added $2.00 an ounce to $1,193.50 after falling to a low of $1,189.30 on Tuesday -- its lowest since May 25.

The metal is more than 5 percent below a lifetime high above $1,264 struck in late June, when worries the euro debt crisis was spreading spurred buying from investors.

Gold buying in main consumer India resurfaced after a gap of nearly a month as dealers stocked for a second round of religious festivals starting in August, when demand for bullion picks up and the wedding season starts.

"The initial reaction for the dip was good but they are looking for more correction. I may have imported about a tonne since 3-4 days," said Pinakin Vyas, assistant vice-president-treasury with IndusInd Bank (INDUSINDB.NS : 213.4 +3.25), a gold importer.

Jewellery is the most common gift during religious events and weddings in India.

"They don't want to miss this chance of a dip before festivals. I placed indents to import half-a-tonne of gold over the past 3 days," said a senior official with a state-run bullion dealing bank, which imported about 40 tonnes last fiscal year.

In Singapore, premiums for gold bars edged up to 70 U.S. cents to the spot London prices from 60 cents last week, with dealers struggling to cope with inquires from consumers in Southeast Asia.

"I am not surprised to see the market short of physicals after the demand surged overnight. Those who did not place their orders earlier will lose out," said a dealer in Singapore.

"Hot physical demand continues to pick up from Indonesia and Thailand," he added.

As investors booked profits after sending gold prices to a record last month, purchases from Chinese jewellers stirred up trading in Hong Kong. Dealers offered gold bars at premiums of 80 cents, up from 50 cents last week.

"China buys a little bit. You can say there's a little of buying everywhere," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

"There's no sale of scrap. There is selling from investors. Some people are liquidating their positions a little bit," said Leung, referring to declines in ETF holdings.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings slipped to 1,316.481 tonnes by July 6 from 1,318.915 on July 2. The holdings hit a record at 1,320.436 tonnes on June 29.

Source : Yahoo Finance
Photo : topnews.in