Commodity Trade Mantra

Posts Tagged ‘Indian Gold Demand’

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.

Recycled Gold has met 60% of Indian Gold Demand on High Gold Prices

India has traditionally been one of the largest gold markets on the planet, second only to China. But, the high gold prices are threatening India’s status as a leading importer of gold. So much recycled gold has come into the system in the past few months that it has met 45% to 60% of the local gold demand. However, demand for gold in the US has risen 27% this year.

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.

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.

The Investment Case For Gold Remains Intact: WGC

Crucially, the long-term investment case for gold is not based on short-term price movements. Gold plays a more important role in a portfolio. Drivers of gold demand respond differently to different economic conditions. Heightened systemic risk typically boosts gold’s role as an insurance asset. Economic growth boosts jewellery demand. This makes if far more than a simple commodity.

Gold Seasonals Bottoming, Ahead of the Usual Major Surges

Gold exhibits strong seasonality, created by surges in global gold demand throughout the calendar year. While this has been suppressed in recent years by the Fed-fueled extreme market distortions, that anomaly is only temporary. Right now gold is experiencing its most-important seasonal bottoming.

Gold Vulnerable To Manipulative Sell Off In June - Bargain Hunters Delight

Technically, gold is vulnerable to a further fall in the short term & seasonal trends say June is traditionally one of the weakest months for gold as its 5 & 10 year average performance in June is negative. But being able to buy gold cheaper, given the state of the world today is “like being given discounts on life-rafts on the Titanic.”

Is Renewed Indian Demand Driving Gold Prices Higher?

To ease gold import restriction by end of March would gain votes, so the government has every incentive to do so. Gold prices would be pushed higher by an easing of duties and restrictions on Indian gold imports, disproportionately more than the actual increase in the tonnage then imported.

The Big Gold ETF Turnaround and its Prospective Impact

There are indications this year, although it is early days yet, that outflows from the Gold ETFs may have ended and may even be being replaced by small inflows. Turnaround in ETF sales/purchases, coupled with Asian demand, will be one of the main drivers bringing gold prices back above $1,300

How Long Can The Gold Prices Be Held Down?

How Long Can The Gold Prices Be Held Down? The answer in short is “For as long as demand in the traditional markets is either lower or the same as supply.” This has two aspects, first the potential for rising demand and second, the potential for falling supplies.

Love Trade Buyers in the East - Dressed to the Nines with Gold

While paper gold is getting the cold shoulder in the West, the Love Trade buyers in the East are wrapping their arms around all the physical gold they can get their hands on – So far in 2013, the East purchased 5 times more gold bars, coins and jewelry than the West.

Indian Government May Cause Gold Pullback

The Indian government finally succeeded in stifling gold imports in August and are expected to be shockingly down to 2.5 tonnes, considering that India represents the largest chunk of global demand and imported an average 72 tonnes per month in 2012.

Did Central Banks Collude to Suppress the Gold Market?

Central Banks have formulated a Plan – Paired with the Fed’s inexplicable reluctance to return Germany’s Gold, Eric believes that central banks also did what they could to stop citizens in India from obtaining Gold

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