Commodity Trade Mantra

All posts under ‘India’

Indian Demonetization Denotes Severe Stress in the Global Gold Market

We believe that the primary objective of the Indian currency demonetization was to sharply reduce gold demand in the world’s most important retail market, India. It indicates to us that the bullion banking cabal is coming up against the wall, and that there is severe supply – demand stress in the global gold market that is rapidly becoming non-containable.

India's Shift from Gold to Silver would Result in a Massive Jump in Silver Prices

India has been trying to reduce its demand for imported gold through a number of means & may soon permanently reduce gold imports. A return to silver for consumers in India may be on the cards. Even a small substitution from gold to silver would result in a massive increase in silver prices. A mere 10% reallocation from gold investment to silver in India would nearly double world silver demand.

Gold Buying Frenzy in India - The Price Means Nothing, Security is All

Gold jumped to $1,339 as speculation of a Trump win built. But then, Trump buying was met by Modi selling, which finally overtook Trump buying. What killed the gold rally? Those who are wiser are acquiring gold at bargain prices, at good prices and at high prices. The price means nothing. But it does require some wisdom to understand this.

Gold Jewelry Buying Expected to be Exceptionally Strong

Plentiful monsoon rains in India tend to drive up demand for gold & gold jewelry among rural, income-flush farmers, who make up a third of the country’s consumption of the yellow metal. Gold jewelry sales in India are expected to surge as much as 60% over last year, during this year’s festival season thanks to the fortuitously timed sharp drop in gold prices.

Surge in Smuggled Gold Hits Indian Gold Refiners, Gold Jewelers & Banks

Smuggled gold could account for over a third of demand this year in India – the world’s second-biggest buyer of gold – potentially costing the government over $1 billion in lost revenue. Gold refiners have less than a 1% margin. If smugglers offer 4 or 5% discounts, they have no choice but to close operations. All 32 refineries in the country have stopped buying dore until market conditions normalize.

Gold Buying in India Set to Get a Boost from Strong Monsoons

Gold is more popular among lower income families, many of whom depend on monsoon rains to nourish their crops. About a third of Indian gold demand comes from rural farmers, who have traditionally converted a percentage of all crop revenue into the precious metal to be held as insurance and sold in times of dire need. Most reports so far this year indicate surplus rainfall.

Will India Revive It's Love Affair With Gold Anytime Soon?

India’s gold demand fell significantly in the first half of 2016. World Gold Council data show the combined demand for jewellery and investment at only 247 tonnes. Import during January-June was 248 tonnes, 42% lower than the corresponding period last year and lowest since 2009. Clearly, many variables are at work. Only time will tell if India’s love affair with gold revives!

India's Booming Silver Market Still Growing: World Silver Survey

Silver bullion trade in 2015 continued to be dominated by flows to India, where total imports reached an all-time high of 256.0 million ounces, rising by 16% from the 2014 level. Physical silver bar investments in India increased by 31% to 82.5 million ounces, the highest since 2008. All this despite a record silver production total in the country of 12.0 million ounces.

India's Soaring Oil Demand Provides Floor Beneath Oil Prices

India’s oil demand grew by 400,000 barrels per day in the first quarter – the fastest in the world, accounting for about 30% of the total global increase. Crude oil imports have jumped by 12% so far this year from 2015 levels. India’s oil demand could rise to 10 mb/d, a more than 6 mb/d increase from today’s levels, which will also be the largest source of growth on the planet.

India's Gold Imports Drops 51% in May, Gold Demand Takes a Hit

Indian gold imports have tumbled for fourth straight month in May this year, while gold demand remains muted over the past several months. India’s gold imports during the month are believed to have dropped sharply by 51% year-on-year to 31 tonnes in May. But, when matched with the April ’16 imports of 22 tonnes, the monthly imports in May rose higher by over 40%.

A Long-Standing Love Affair Between India And Gold

India has never experienced a bear market of any consequence in gold. Since 1970 the Indian rupee has lost 88.7% of its purchasing power compared to the U.S. dollar. But the people’s purchasing power has been maintained thanks to gold. Maybe that is why people are reluctant to give up gold for a piece of government paper. Westerners may have something to learn from India’s love affair with gold.

India - A Critical Consumer Is Buying Gold For The First Time In 3 Weeks

The good news for the bullion market is that India will now be buying gold again — for the first time since February. That should give a lift to gold prices — especially with reports suggesting there is a lot of “pent up” demand here after the 19-day strike. Watch for imports into India to rise for the coming weeks, and potentially lift the gold price. Here’s to a triumphant return.

India's Silver and Gold Imports Strong Despite Government's Perpetual Obstruction

While India’s gross gold bullion import in 2015 reached the third highest amount ever at 947 tonnes and gross silver bullion import reached the highest amount ever at 8,504 tonnes, the Indian government is perpetually trying to obstruct the populace from protecting their wealth. Yet the Indian people did not substantially buy less gold – and did buy substantially more silver.

UAE Offers India Free Oil To Ease Storage Woes

India is building a massive underground storage facility system that will be able to take on 5.33 million tons of crude oil as a bulwark against global price shocks and supply disruptions. The UAE’s Abu Dhabi National Oil Company has agreed to store crude oil in India’s maiden strategic storage facility, sweetening the deal by saying India could take two-thirds of the oil for free.

India Will Determine Both Coal And Solar Energy Market

The IEA says that India will account for a quarter of the world’s energy demand growth between now & 2040. India is now perceived as a ‘major draw’ for the world’s leading solar manufacturers & developers. It has a superb solar resource; it has the need; it says it has the will & the potential for disaster is great if coal rather than solar solves the country’s power woes.

Indians Urged To Give Up Their "Idle Gold" For The Good Of The Nation

Indians would be allowed to deposit their gold with banks & earn interest, while banks will be free to sell the gold to jewelers, thereby boosting supply. When stripped of its pompous rhetoric, what India is offering is simple: a gold-for-paper exchange, which in a culture where gold has been the definition of money for centuries, would likely be a non-starter from the beginning.

India Issues Its First Sovereign Gold Coin… to Curb Gold Imports

It’s estimated that less than 10% of all Indian gold demand is in bars & coins. That might change this month as the India Government Mint will issue its first-ever sovereign gold coin, just in time for the fall festival season, which kicks off Nov 11. The gold coin will reportedly feature the Ashoka Chakra, the traditional 24-spoked symbol that appears on India’s national flag.

We're Nowhere Near Peak Coal Use in China and India

China and India collectively consume about 60% of all coal produced in the world. Consumption is expected to continue expanding as their populations balloon and the energy-thirsty middle class expands. Unlike China, India has no present interest in reigning in its use of coal & it’s possible that if China’s coal consumption declines, India will be there to fill the hole.

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