Commodity Trade Mantra

Posts Tagged ‘Gold Consumption’

Gold Prices Poised to Leap as Love Trade Overtakes Fear Trade

India has pulled ahead of China. The economic output of India’s top 5 cities is expected to reach the size of 5 middle-income countries today. Mumbai’s massive $245 billion economy, could soon exceed the entire country of Malaysia. This presents a huge opportunity for the Love Trade to expand even more, as rising incomes & economic momentum have been a tailwind for gold demand.

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.

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%.

Gold Demand Surges As Chinese Seize The Golden Opportunity

Gold demand has surged in China over the last several weeks – a period generally considered out of season. Gold purchases in China are strongly associated with jewelry buying around the Lunar New Year holiday, which fell in early February. But the uncertainty confronting global economies has driven up demand from a different sort of buyer—the hard-nosed investor.

Gold Glimmers as Global Market Fear Grips Investors

When a currency loses value and falls out of favor, gold has tended to benefit as investors seek real assets. Gold prices have then been able to soar, just as we saw in the months following the financial crisis, eventually reaching an all-time high of $1,921 per ounce in September 2011. Gold is again glimmering with safe haven appeal & the Fear Trade, it seems, is in full force.

China Moves To Dominate Gold Market With Physical Exchange

The encouraging factor about the SGE and the SGE international platform is that there is a lot of physical gold flowing through the Exchange. Therefore, price discovery is not just based on an inverted pyramid of mostly unallocated gold as in London or mostly cash-traded futures paper gold as in New York.

Gold and Silver versus the Petrodollar Peril

The record flows of gold and silver into private hands, as well as public entities over the last few years is an indication people have that all is not well with the petrodollar. The change in reserve currency status of the US dollar has been underway for several years & it’s now picking up speed with a deal that Russia & China signed.

Inflation Is Coming, What to Do? - Turn To Gold Now

History clearly shows there is a direct link between inflation and gold demand. When inflation jumps, or even when inflation expectations rise, investors turn to gold in greater numbers. And when gold demand rises, so do gold prices—you can guess what happens to gold stocks.

What Is Happening With Gold In India?

Given sustained high inflation & an extremely difficult investment environment in India, Indians desperately need a hedge against inflation. Unfortunately, there are very limited options. Indians love gold & will do so for a foreseeable future. Moreover, gold has done quite well for Indian investors.

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