Commodity Trade Mantra

Posts Tagged ‘India’

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.

Emerging Markets and Gold - Right Concoction for a Balanced Portfolio

We can look at emerging markets with strong domestic spending such as India, the Philippines, other parts of Southeast Asia & Latin America where their growth patterns are independent of what’s going on in China. And in this period where we’ve had massive government intervention in the fiat money markets, we have our ultimate portfolio insurance in gold.

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.

Is India - the World’s “Star Performer” Growth Market, the New China?

One of the bright spots continues to be India, whose own manufacturing sector expanded for the fifth straight month in May. The country’s GDP advanced an impressive 7.9 percent in the first quarter, following 7.3 percent year-over-year growth in 2015. This helps it retain its position as the world’s fastest growing major economy.

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 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.

Comex Registered Gold Hits New Low - Now 293 Oz Of Paper Gold Per Physical Oz

Many vaults continue to see either outright withdrawals of Registered Gold or comparable adjustments. How much longer can this exponential surge in the dilution ratio continue? We don’t know, although with less than 5 tons of registered gold left in the Comex vault system, we hope that the mystery of what is really going on at the Comex will finally be unveiled.

After a Collapse in Commodity Prices, What Next?

It is true that commodity prices may remain under pressure for a long time to come. But for companies in the resources space from E&P firms to miners, commodity prices don’t matter – margins do. If costs of extraction come down and commodity prices do as well, a company can still earn a substantial profit.

Emerging Market Meltdown May Plunge Global Economy Into Recession

When the Fed effectively telegraphed its new reaction function last month, the FOMC served notice to the world that it was not only acutely aware of what’s going on in emerging markets, but also extremely worried about the possibility that hiking rates could end up triggering something far worse than the “tantrum” that unfolded across EM in 2013.

India Is Massively Hoarding Silver: What Do They Know?

I don’t see the prices of silver falling too much from here, but if they do, India’s just going to buy more silver. There will soon be a massive rush of people out of increasingly worthless paper assets & into physical assets. That’s when we’ll see this transfer of wealth from a commodity stance of silver to a high quality store of value of silver.

Major Shift In Asian Commodity Demand Already Underway

The story of commodities in the new millennium so far has largely been driven by China. However, as China’s growth has declined slowly but steadily, commodity demand has also waned, with enormous ramifications for commodity producers. A source of hope now for commodity investors is India, that’s growing faster than China.

Gold Is a ‘Barbarous Relic’ but These Are ‘Barbarous Times’

The rupee is losing ground against the dollar by around 9% per year. Indian price inflation runs at around 9% per year as well. Yields are clearly too low to maintain purchasing power. Without rising asset prices, stocks and real-estate fail to protect purchasing power. This leaves gold as an alternative destination for savings.

Gold Is Not Only Money, But Now Also Pays Interest In India

India could allow individuals deposit a minimum of 30 grams of gold with banks in return for interest payments to help monetise 20,000 tonnes of unproductive gold lying with households, a step that is aimed at cutting expensive imports. In short it proves that in India, gold is the only real money.

The World’s Next Big Trading Block May Be India

A new Common Market is being formed. It has a bigger economy than the whole of sub-Saharan Africa, more states than the EU has members & twice the population of North America. It’s called India. Given the size of its 29 states & a predicted growth rate of at least 7.5%, potential benefits of integration are huge.

Gold really does matter in “polite company”!

Why are we bombarded daily with negative psyops regarding gold & for the last couple of years, has gold price suppression been so openly blatant & fierce? Its ALL about the dollar & privileges of issuing the reserve currency, namely the US ability to hang on to this privilege. Rest of the world knows what gold really is, it is money.

Thoughts On The Price Of Gold

Derivatives can be used by bullion banks and central banks to influence the price of gold. If the paper price goes down & physical demand increases this has to be met by equal physical supply, that is, if the price for physical gold follows the paper price. If the physical price disconnects from the paper price, premiums will appear at one location.

Oil Slides As Inventories Trump Iran-Yemen Push-Pull

The crude oil rally due to airstrikes on Yemen, reversed the sell-off that occurred in part on the rising odds of a deal with Iran being reached. Both events may have negligible near-term supply impacts, with the build in crude inventories set to continue in 2Q15. It appears today’s weakness indicates a dawning realization that there’s still too much.

India Eases Bank Gold Imports: Gold Can Again Be Used As Loan Collateral

Facilitated by the drop in oil prices – a key import for India, the RBI has finally lifted its ban on imports of gold coins and medallions by banks and trading houses. The RBI in a notification also said banks are permitted to import gold on consignment basis & are free to grant gold metal loans.

January Sees Largest Gold ETF Inflows Since Summer 2012

January saw the largest inflows in gold ETFs since the summer of 2012. Part of the allure has been the fact that interest rates in many countries around the world are now negative, a consequence of central banks’ easing policies. Gold imports by India are expected to surge this year as the government has eased curbs on overseas purchases.

Don’t Expect India’s Gold Imports to Surge on Tariff Cuts

The Indian government is reversing its efforts to curtail gold imports & gold importers expect a drop in import tariffs to be announced in the upcoming federal budget. But will there be a big surge of gold imports as a result? Probably not. Gold imports will continue to be strong as are now & the cuts may not make a noticeable difference.

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