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Showing posts with label Jewellery. Show all posts
Showing posts with label Jewellery. Show all posts

Wednesday, 28 August 2013

INVITATION FOR TIMES GLAMOUR EXHIBITION 2013 BY RSBL DIA JEWELS






Saturday, 3 August 2013

WAVES OF DISAPPOINTMENT FOR THE MARKET

-By Mr. Prithviraj Kothari, MD, RSBL (RiddiSiddhi Bullions Ltd.)



As we discussed last week that this week had a bundle of surprises for gold of which the US employment data was the biggest surprise. There were mixed sentiments in the market post the data release. Investors believed that the jobless claims would be much high compared to June.

Moreover Fed Chairman Bernanke's statement over the stimulus plan created even further confusion.
There was mystification in the market as the jobless claims were 326,000, below the forecast of 346,000 while the private sector ADP change in non- farm payroll came in at 200,000 well above the forecast 179,000.

A weaker-than-expected U.S. July jobs report and a fall in the dollar helped gold rebound from a drop of more than $25 an ounce during Friday’s session, but prices still marked the first weekly loss in four week.

Gold initially fell to a two week low at $1280 an ounce as encouraging US gross domestic product and factory activity data earlier in the week reduced the metal's appeal as an investment hedge.




It jumped about  2 percent from its session low after government data showed U.S. employers slowed their pace of hiring in July but the jobless rate fell anyway, easing fears that the U.S. central bank might imminently reduce its $85 billion monthly bond buy back stimulus.
Gold’s hard times have come from the view that easy money, which has weighed on the dollar and lifted gold in recent years, is going bye-bye sooner or later.

US jobs data is vital to the gold market after the US Federal Open Market Committee indicated that quantitative easing may continue until the unemployment rate falls to 6.5 percent. The Fed remains committed to purchasing $85 billion in new debt per month in an open-ended programme (QE3). Accommodative measures from the US central bank are supportive of commodity prices because extra liquidity tends to debase the dollar and create future inflationary risk.

I am optimistic over the long-term time frame. Targeting inflation, the Federal Reserve's inability to taper, and underlying problems in Europe will make sure precious metals will outperform down the stretch. The nonfarm payrolls data usually brings volatility to gold, but the metals just haven't had enough upside momentum to constitute a breakout, so till that time it will be wait and watch.

In other gold market news, China’s thirst for physical metal remains strong. Imports from Hong Kong at 105 tonnes in June were down slightly from 114 tonnes in May but this was still the fourth-biggest month on record, according to Macquarie, citing Hong Kong export data. Apparent demand from China at 835 tonnes is up more than 50 percent on last year, the broker estimates.

However demand from India has not picked up pace as there are no clarification over the RBI policies for gold and the government is trying to curb g0ld imports to rectify the CAD.

As far as the international markets are concerned, it’s going to be a light week for U.S. economic news, but globally, next week will include a few more central bank meetings including the Reserve Bank of Australia, which is expected to cut rates. The Bank of Japan is also meeting, but is not expected to make changes to monetary policy.  Chinese data slated for release include industrial production, retail sales, export data and inflation report.

Gold support is at $1,280 and $1,260. Resistance is at $1,320 and $1,340. Silver support is at $19.20 and $19.05, resistance is at $20.20 and $20.40.
In the domestic market gold is expected to move in the range of Rs.26,000 to Rs. 29,500 in the coming week.


“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”

- Previous blog -
"Bundle of surprises for gold"
http://riddisiddhibullionsltd.blogspot.in/2013/07/bundle-of-surprises-for-gold.html


Saturday, 27 July 2013

INDIA'S FIRST EVER GOLD PLATED BIKE LAUNCHED BY RSBL DIA JEWELS!



Presenting to you India's first ever gold plated bike.

This bike is India's first fully Gold Plated bike and decorated aesthetically with diamonds. The gorgeous Huma Qureshi herself was present at the inaugration and unleashed the bike.

This bike is available for display at the Times Glamour Exhibition at Hotel Shangri- La, Lower Parel,  from 26th- 28th July from 10am - 7pm ( Stall no 18.)


“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”

- Previous blog -
"Bundle of surprises for gold"
http://riddisiddhibullionsltd.blogspot.in/2013/07/bundle-of-surprises-for-gold.html

BUNDLE OF SURPRISES FOR GOLD!


-By Mr. Prithviraj Kothari, MD, RSBL (RiddiSiddhi Bullions Ltd.)



Currently the entire market is in a confused state of mind as far as gold is concerned.
The market has split in two parts. Some say gold will rise while the others take an opposite stand.

This week we came across some interesting figures in gold:

  1. On Friday, gold was trading at $1340 - almost $160 higher than the three year low of 1179$ that it hit on June 28
  2. Gold has risen consecutively for the third week until Friday and also its first three weeks rise since March.
  3. On the other hand, in terms of value gold has also lost a fifth of its value as investors lost faith in gold.


Many buyers also indulged in profit-taking by cashing in from gold's Friday session high of 1340$.

Initially, Fed chairman Bernanke has stated that the Fed may scale back its $85 billion monthly bond purchases. But now there is no clarity on the timeline for this activity as he further states that scaling back of the stimulus program depends on the recovery of the US economy.

The market now digests news that Russia, Ukraine and Azerbaijan were among eight countries that increased their gold holdings in June, data from the International Monetary Fund showed, while Turkey, Germany and seven other countries shed some of their bullion.

As far as the Asian markets are considered, China's gold demand could hit a record 1,000 tonnes this year, the World Gold Council said on Thursday, which means it would overtake India as the world's biggest bullion consumer.

But investors still have a mixed basket of feelings for gold. The appetite to carry large positions overnight may decline ahead of the next crucial week of data.

The U.S. Federal Reserve will announce its policy decision on Wednesday, as will the European Central Bank and Bank of England on Thursday — and on Friday, the U.S. Labour Department will release its widely watched monthly jobs report.

Now what we have to wait and see is that whether these vital reports will pull down gold or push it up.

Demand from India has taken a setback but is now expected to rise. Monsoons play a key role for demand coming in from rural areas. Also August marks the onset of the festive and marriage season. But since the government has taken measures to curb imports, in spite of physical demand there isn’t much gold available in the market to meet the demand. 

Gold support is at $1,321 and $1,307. Resistance is at $1,340 and $1,355. Silver support is at $20.78 and $19.40, resistance is at $20.70 and $20.90.


“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”


- Previous blog -
  "Gold Has Found A Support"
 http://riddisiddhibullionsltd.blogspot.in/2013/07/gold-has-found-support.html

Saturday, 20 July 2013

GOLD HAS FOUND A SUPPORT!!!

                                 - Mr. Prithviraj Kothari (MD, RSBL:RiddiSiddhi Bullions Ltd.)



I am sure every single reader who follows Bullion market will agree when I say; this week belonged to Ben Bernanke’s statements. Bullion has slipped more than 22% this year on the Fed's hints that its monthly bond-buying program may end altogether by mid-2014.

Fed Chairman Ben Bernanke eased some market nerves by telling the U.S. Congress this week that the central bank's plans to scale back asset purchases later this year were not set in stone and depended on the strength of the economy.

He further stated that the U.S. central bank still expects to start scaling back bond purchases later in the year, but left open the option of changing that plan if needed. These statements were enough to support bullion prices and gold gained strength, even when the data flowing out of US has been considerably positive for the growth of economy. In July, jobless claims sharply fell by 24k thus reaching 334k. The US Philly Fed Index rose again from 12.5 in June to 19.8 in July. 

The recovery of the US economy is bound to pull down demand for gold and silver as safe haven investment option, which will then affect its prices.

I have a different perspective for the Gold price. Because of the lower gold prices now prevailing, which make many operating gold mines and projects uneconomic, we are already seeing fallout among producers with cutbacks, shutdowns and postponements.  As a result global gold production is likely to decline until there is a major pickup in the metal price.  

The lower price also discourages scrap sales which have thus been diminishing too.  Meanwhile the huge demand for physical gold seems to be continuing a pace. Russia has been the biggest gold buyer in the official sector in the past decade. A shift by central banks from major sellers of bullion to net buyers has been a major support to the gold market in recent years.

Gold took a stab at the $1,300/oz level earlier in the week, although it encountered strong resistance on approach of this level and has since sunk back lower. Gold has been receiving strong support in recent weeks from physical buying (especially from Chinese buyers); however, this physical buying is waning, and becomes especially thin on approach of $1,300/oz.

Physical demand for gold from the top consumer India remains dull due to stiff measures taken by the RBI to curb imports with a view to tackle the widening current account deficit. End of peak marriage season and weak domestic currency is also restricting buyers to be active but enduring good monsoon may provide firm support to prices later. 

According to the Indian Meteorological Department, the present state of the monsoon was 16% above a 50-year average during the June 1- July 16 period. A good monsoon brings strong harvests and given the fact that 70% of India’s Gold demand is from rural areas, should keep imports on a firm note going into year end.

Market participants were now awaiting a G20 meeting in Moscow over the weekend, which will likely focus on recent financial market volatility. Attention will then turn towards a series of crucial U.S. economic data, which analysts said will give more clues about the timing of the Fed's stimulus tapering.

Many traders and investors in Europe and North America are gearing up for their summer holidays, which could made for generally quieter, summer doldrums-type trading conditions until after the U.S. Labour Day holiday in early September.

Gold support is at $1,274 and $1,265. Resistance is at $1,305 and $1,320. Silver support is at $19.20 and $19.05, resistance is at $19.70 and $20.20. Platinum support is at $1,405 and $1,390. Resistance is at $1,418 and $1,437

In the domestic market the trade range for gold for the coming is between Rs. 26,000 to Rs. 28000 per 10 gram and for silver between Rs. 39000 to Rs. 40000 per kg.

"The primary purpose of this blog by Prithviraj Kothari - MD, RSBL(RiddiSiddhi Bullions Ltd.) is to educate the masses of the current happenings in the Bullion world."

Saturday, 13 July 2013

HOLD ON TO YOUR GOLD!

Mr. Prithviraj Kothari (MD, RSBL:RiddiSiddhi Bullions Ltd.)






Gold in the spot market was up 4.8% for the week, thus stating its biggest weekly gain since October 2011. Gold rose by 2.62% to $1280.1 on Thursday and silver also increased by 4.13% to $19.95.

The markets were moved by the U.S Fed's speech on 10th July, Bernanke spoke after the markets closed on Wednesday. He said that the US economy desires a highly accommodative monetary policy for the likely future. He also suggested that the tapering of the QE3 programme does not means that monetary policy would be tightened or the interest rates would be raised.

The FOMC minutes reviewed that many Fed governors would like to see more signs of improvement in jobs before agreeing to tapering. Both risky assets and gold reacted positively to the dovish comments by the Fed. The most recent weekly jobless claims in the U.S. unexpectedly rose by 16,000 to 360,000. 

On Friday, among other precious metals, silver fell 1.1% to $19.87 an ounce. Platinum inched down 0.1% to $1,402.99 an ounce, while palladium gained 0.1% to $716.97 an ounce. Gold pared losses after government data showed that U.S. producer prices rose more than expected in June, increasing gold's inflation-hedge appeal. 

Gold supply remains tight with current market prices now below the highest cost of production. Miners are writing down asset values and cutting back on costs. As prices move lower, it will come to a point where supply and demand economics take over.

Gold's reaction was limited after Cypriot President Nicos Anastasiades said he hoped there would never be a need for the island to sell its gold reserves, an assessment stipulated in an international bailout for Cyprus.

Meantime in India – the world's heaviest gold-buying nation – the government's new campaign against household gold demand was challenged today by the jewellery industry, as well as market analysts. A number of jewellery units and workers have been idled due to the severe shortage of gold in the wake of several restrictions on the yellow metal’s import.
Imports in April and May together were a little over 300 tonnes. This fell to 38 tonnes in June. Excess imports in May gave some initial relief but that cushion is long gone.

Starting off next week, we have Chinese Q2:13 GDP data out early Monday. This number is generally not as important for precious metals as it is for other commodities. However, given that it is well known that Asian physical buying (particularly from China) has provided a crucial crutch for gold amid Fed tapering concerns, we could see a more marked reaction from precious metals than is usually the case. There is considerable risk that this number will disappoint (Bloomberg consensus: 7.6% y/y), although this time the market might not react as violently as it did in April — the market might be buoyed to some extent by hopes of stimulus, after Chinese Premier Li stated earlier this week that economic growth and employment must stay above a certain floor.

I expect gold prices to finish 2013 at around USD1,300/oz and rise mildly in 2014 and 2015. In the long term, uncertainty will continue to plague global markets as the international financial system adapts to a changing world economy. Gold will continue to play an important portfolio role for investors

"The primary purpose of this blog by Prithviraj Kothari - MD, RSBL(RiddiSiddhi Bullions Ltd.) is to educate the masses of the current happenings in the Bullion world."
-Previous Blog-
"Dollar Drags Down Gold"
 http://riddisiddhibullionsltd.blogspot.in/2013/07/dollar-drags-down-gold.html

Friday, 24 May 2013

FED'S POLICY STATMENTS – Predictable I feel?

-By Mr. Prithviraj Kothari, MD, RSBL (RiddiSiddhi Bullions Ltd.)





Why did the financial world react in this manic-depressive way to a statement that was bland and predictable? Why do investors keep gambling vast sums of money in speculations on changes in monetary policy when Bernanke has tried to make crystal clear that significant changes are unlikely, at least until the end of the year? I think no one would have any clue with respect to these questions.

As always the effect on Gold is felt in a big way. Gold fell for a third straight session on Thursday after U.S. Federal Reserve Chairman Ben Bernanke hinted at reducing an $85 billion bond-buying programme, which has increased the precious metal’s appeal as a hedge against inflation. While Bernanke said the central bank needs to see further progress in the U.S. economy before the Fed scales back monetary stimulus, he also added that a decision to adjust it could come in the “next few meetings” if the economy looked set to maintain momentum. Down nearly 20 percent this year, gold could come under more selling pressure as investors increasingly price in a stimulus cut ahead of the Fed’s next policy meeting on June 18-19.

But Gold markets did manage to regain some composure yesterday. We saw a steady climb towards the $1,400/oz level until the US market opened. Some profit-taking took the US market lower, although a recovery soon took the price to a relatively stable trading range, just above $1,390/oz. The stability continued during Asian trading, with the price remaining in a very tight band of around $1,390/oz to $1,395/oz.

As pointed out earlier, I do feel that more upside for gold is in the offing. Even taking a slowing of Fed quantitative easing into account, we still feel that the environment remains supportive of a higher gold price—global liquidity should continue to grow, although maybe at a slower pace, and real long-term interest rates across the globe look set to remain low for some time still. Nevertheless, I cannot discount the investor apathy towards the metal and acknowledge that it will take some doing to restore confidence. Consequently, while I do still foresee upside for gold, these gains will most likely be hard won. The first challenge will be to push strongly past the $1,400/oz hurdle.

Physical demand remains strong in the major Gold consuming countries, where China has seen a daily increase in physical trading volumes. How tight the physical market still is, is reflected in the premium of 50 USD still paid today in Shanghai over the international price. Premiums in India started to cool off, as the weaker Rupee drove local Gold prices up and some Gold has restarted to be imported into the country, however rather sluggishly. Top gold buyer India, which had seen gold imports jump 138 percent in April, is facing a slowdown as the peak wedding season comes to an end and its central bank imposes new rules to reduce a deficit. 

There is no doubt gold is still one of the attractive assets at present as economic uncertainty is not over across the developed world. Federal Reserve has created money, but that money has not been circulated into economy as banks are still tentative to flood the market with easy money. Economists are apprehensive that when this money will be circulated, inflation may trigger in a big way. But that theory will be tested when the actual event happens.

The Fed will probably want to see six months of strong employment and at least two quarters of 3 percent gross domestic product growth before it seriously considers tightening. In the meantime, big market reactions to comments from the Fed chairman, like those Wednesday, will mostly be reversed – expensively for those investors who replace analysis with wishful thinking.

In short, there are still reasons to buy gold; there are reasons to hold gold; there are reasons not to go aggressive in investment. So, my gold may remain in a range ($1325-1550/oz) till September (German Election may be the next trigger).

“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”

- Previous blog -

  "Is gold losing its safe haven appeal" 
http://riddisiddhibullionsltd.blogspot.in/2013/05/is-gold-losing-its-safe-haven-appeal.html

Monday, 20 May 2013

RIDDISIDDHI BULLIONS LTD. FORAYS INTO DIAMOND JEWELLERY



Mumbai, 12th May 2013: Diamonds are said to be woman's best friend. And RSBL promises to strengthen this friendship even further.

We at RSBL, announce our foray into diamond jewellery uncer our promoed company- RSBL DIA Jewels Pvt. Ltd. and bring to you and exquisite line of jewellery collection:       

                                           Sparsh- touch of elegance 



A name to reckon with elegance shall leave you mesmerized with its intricate designs and inimitable craftsmanship. True to the essence of RSBL, RSBL DIA Jewels reflects the best what it has always been doing – “Strengthening the trust”.

Inspired by nature, this collection has a piece that engulfs ones soul. The collection comprises of 18K diamond jewellery that has pieces tailor made which suits every women’s varied moods and styles. Each masterpiece is crafted uniquely symbolizing the uniqueness that each woman carries within her. The brand promises the quality without compromise and it will always endeavor craftsmanship that's beyond comparison and at the same time maintaining the company traditions.
Sparsh – touch of elegance also has an exclusive collection designed for special occasions. Celebrate those enduring moments with its splendid pieces. Be the cynosure of all eyes on your wedding, charm everyone with your ornate jewels on your mehendi or bask in the glory of your inimitable jewels on the reception. Steal your betrothed’s heart on your engagement and relish everyone’s attention on Diwali with their unique and elegant jewels. The collection covers products like beautiful rings, pendants, ear rings, bracelets, and classy diamond sets etc. 

Keeping the design, style and quality in mind RSBL DIA jewels strictly adheres to quality and authenticity by providing certificate of purity and authenticity with each masterpiece. There would not be even a minor difference in the stated quality of diamond or gold. 
A truly unique service that Sparsh – touch of elegance will provide to its clientele is Buy back facility. It’s one of the first of its kind where a client can exchange their old jewellery of Sparsh – touch of elegance with a new one from its store.
Sparsh – touch of elegance jewellery is as inimitable as you, while the jewels are uniquely yours for these are designed especially for you. So, feel special with Sparsh – touch of elegance jewellery. With Sparsh – touch of elegance from RSBL DIA Jewels, RSBL shall continue to provide you with similar levels of service, upholding the same values and the commitment. 

I am glad that people of India now say, what is the RSBL price of Gold rather than Gold price. RSBL has strived hard to provide transparent benchmark prices for Gold. My motto has always been “Make products that meet customer needs”. Looking at the current pricing scenario of the Diamond jewellery market, I felt it is high time that we have a brand that people can trust, that provides value for money and most importantly provides transparent prices so that they can buy without any hesitation. Like Gold, diamonds have always given good returns. I am proud to bring Sparsh – touch of Elegance collection to you.

                                                   


Showroom Address: RiddiSiddhi Bullions Ltd, Bullion House, 115, Tambakata Lane, 2nd Floor, Opp Dagina Bazaar, Pydhonie, Mumbai - 400 003. India.
Web: http://rsbldiajewels.co.in/

Saturday, 30 March 2013

IS IT TIME TO ADOPT GOLD OR ABANDON IT??

                                       -By Mr. Prithviraj Kothari, MD, RSBL (RiddiSiddhi Bullions Ltd.)



Gold and silver showed mixed sentiments last week and continued to make wave like movements despite many news that did the rounds in the previous week. Mixed movements in the forex market could have resulted in the mixed movements witnessed in the commodities market so far.

Gold and Silver slightly declined on Tuesday, after the news from Cyprus that its parliament passed on the bailout plan. On the other hand, other commodities prices such as oil prices and the stock market indexes such as S&P 500 rose. The shift in market sentiment towards bullish may also have contributed to decline in demand for precious metals and other safe haven investments. 

However, On Wednesday, though gold and silver opened with a negative note, they managed to bounce back by late evening. Causing the climb was a fall in U.S. equities which made the metal more appealing as an investment. In addition, continuing euro zone fears, following developments in Italy, gave gold extra upside impetus. The speculation around Cyprus bailout plan is currently pulling down the Euro and EU stock markets. These speculations have helped rally gold and silver prices. 

The Cyprus bailout is a wake-up call to buy gold. All those who have waited long to buy gold, can now start making decisions. With Europe's unsolvable debt crisis and America's own unemployment problems wherein for the first-time jobless claims rose by 16,000 to 357,000 in the week ended March 23, the highest level in more than a month, it's only a matter of time before we witness another gold rally.

Thanks to the Federal Reserve, central banks around the world are losing trust in the U.S. dollar; which used to be the “safe haven” currency. As more countries print paper money, known as “fiat currency,” the same countries will be reluctant to hold the fiat currencies of other countries in their reserves. Gold bullion is becoming a need for central banks, and I believe central banks will buy more gold bullion, because they have to, as paper money becomes too plentiful. While central banks are buying gold bullion at a rate not seen in 49 years, the price of gold bullion has declined—actions that bring forward the question of price manipulation in the gold market. If gold prices are indeed being suppressed, which is very difficult to prove, the end result will eventually be a major breakout for gold bullion prices on the upside. 

To give you an idea, China has the biggest reserve in the world—worth more than $3.0 trillion. But compared to the gold bullion holdings of other major central banks, China is still far behind. The U.S., Germany, and Italy hold more than 70% of their reserves in gold bullion. Imagine what would happen to gold bullion prices if China even just tried to double its gold reserves. In the backdrop of the gold bullion buying spree, central banks around the world are printing paper money, working to depreciate their currencies to jumpstart exports. (Source: business2community.com)

I feel its matter of time. If things get messier for either, investors can see gold easily hitting $2,000/ounce by the end of the year.

“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”


- Previous blog -
"Cyprus gives gold a helping hand"


Saturday, 23 March 2013

CYPRUS GIVES GOLD A HELPING HAND

-By Mr. Prithviraj Kothari, MD, RSBL (RiddiSiddhi Bullions Ltd.)



Gold traded near a 3-1/2-week high on Friday, underpinned by safe-haven demand on the fear of a potential financial meltdown in Cyprus, which has put bullion on track for its biggest weekly rise in four months. The clock is ticking for Cyprus to come up with a solution to clinch an international bailout; otherwise it could face the collapse of its financial system and likely exit from the euro zone.  

 The Cyprus crisis has offered gold a helping hand, after investors had been pulling out of the precious metal and piling into stock markets which have rallied this year on a brighter economic outlook. The other reason for this upmove is the fact that FOMC’s decision is still active to keep policy unchanged. 

Gold traded as high as $1,608.63/oz, its first break above the $1,600/oz marker since late February, but pared its gains as a stronger U.S. dollar damped buying. On Thursday, the price of gold rose by 0.39% to $1,613.8; Silver also increased by 1.37% to $29.19

U.S. dollar gold prices continued to hover around $1610 per ounce Friday morning, dipping back below that level after making gains in Asian trading, while stocks and commodities were flat on the day ahead of a vote by Cyprus’s parliament on measures aimed at raising money and securing a bailout. 

European patience with Cyprus is running out after Cypriot lawmakers rejected a plan to tax bank deposits agreed on last weekend by the 17 euro-area finance ministers. The same finance chiefs are now considering a plan to shutter the two biggest banks in Cyprus and freeze the assets of uninsured depositors, four European officials said yesterday. European and Cypriot officials were locked in talks to find a formula to avert the Mediterranean island’s financial collapse, struggling to forge consensus on a bailout package before the European Central Bank cuts funding. Cyprus’s options narrowed on Friday after Russia spurned a bid for a loan and coalition lawmakers in Germany dismissed the Cypriot government’s latest rescue proposals. That left the troika of international creditors to hammer out fresh terms with President Nicos Anastasiades’s coalition focusing on the fate of Cyprus’s ailing banks. The ECB has said it will cut off emergency funding to Cypriot banks at the end of Monday, March 25 unless there is a deal. 

Looking ahead to early next week, Cyprus is going to remain front and centre and euro-zone confidence readings for March will also be significant next week.

Holdings of SPDR Gold Trust, the world’s largest gold ETF, fell 0.902 tons from the previous session to 1,221.26 tons on March 21, the lowest since July 2011. The fund is headed for a twelfth week of outflows.  Adding to the headwind, a string of U.S. data on Thursday, including on the labour market, factory activity and home sales, pointed to a growing momentum in the U.S. economy, diminishing gold’s appeal as an investment vehicle during time of economic and political distress.

On the other hand demand from India, the world's biggest gold consumer, languished before next week's Holi festival, a period considered inauspicious for gold purchases, coinciding with the end of the financial year when traders prefer to keep low inventories.

 I am eyeing key resistance at $1,620 an ounce, a price unseen since Feb. 26. A break above that level could rekindle enthusiasm in trading. All said, Thanks to Cyprus, that gold has started glittering again!

“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”

- Previous blog -
"Speaker at Dubai Precious Metals Conference 2013"

Friday, 22 March 2013

SPEAKER AT DUBAI PRECIOUS METALS CONFERENCE 2013


Dubai Multi Commodities Centre - Government of Dubai, has taken an initiative of organizing a Conference with Foretell Business Solutions: Dubai Precious Metals Conference.

Theme of the conference: Enhancing the Global Precious Metals Supply Chain

I am glad to be a part of this conference. I will be providing insights on the topic: Gold consumption giants; opportunities linking the UAE with China, India and the U.S.

1. How can the UAE strengthen its ties with India?
2. What does it take to serve the Chinese markets?
3. Going west; can Dubai explore the third largest consumption hub?    

Time & date of my Speech: 11:15 am – 12:00 noon, 7th April, 2013.
Venue: Almas Conference Centre, Almas Tower, Jumeirah Lakes Towers, Dubai      
Looking forward to see you there!                                        

For further info. kindly check: http://www.dpmc.ae/index.html

“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”

- Previous blog -
"0.1% VAT increase on precious metals"

Wednesday, 20 March 2013

0.1% VAT INCREASE ON PRECIOUS METALS

-By Mr. Prithviraj Kothari, MD, RSBL (RiddiSiddhi Bullions Ltd.)
The Maharashtra government will raise the value added tax on gold, silver, other precious metals, diamonds, and jewellery to 1.1% from 1.0% earlier, State Finance Minister Ajit Pawar said today in his budget for 2013-14 (Apr-Mar). 
The government is planning to implement GST and LBT by the end of this year. If this actually takes place, then I feel there was no such requirement for this step. The hike will directly have an effect on imports. Gold price in Maharashtra will become costlier by INR 6,000 per kg(inclusive of Octroi and additional VAT) when compared to other states. This additional cost will definitely reduce the demand for gold in Mumbai and will have a negative impact on the gem and Jewellery sector. 

Mumbai is the hub for jewelry manufacturers. All machine chain bangles are made in Mumbai  along with hand made jewellery which is made in rest of Maharashtra. This additional VAT will compel manufacturers to shift their base to other states. Hence the rate of unemployment will rise. If this tax was levied all over India, then it wouldn't have made much a difference. But since it is levied only in Maharshtra, gold here will become more expensive than other states and people will prefer to buy from other centers. We have already witnessed a shift of silver business to other states. Levy of this extra VAT will also move gold business away from Maharashtra.  It will create a major impact not only on demand but also the workers especially the small business units. The government has to take some initiative to protect the interests of workers and the entire bullion industry.

“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”


- Previous blog -
"Investors being loyal to gold"

Sunday, 17 March 2013

INVESTORS BEING LOYAL TO GOLD

-By Mr. Prithviraj Kothari, MD, RSBL (RiddiSiddhi Bullions Ltd.)





Gold was set for the first back to back weekly advance since January, as investors weighed prospects for more stimulus against improving U.S. economic data. Silver, platinum and palladium headed for weekly losses.

Gold and silver moved away from the weekly gain and slightly declined on Wednesday. This decrease corresponded with the drop of leading currencies against the USD such as Euro and Aussie Dollar. The US Retail Sales report published on Tuesday also showed that economic activity in US grew as retail sales rose last month by the highest rate in months. This could be the reason behind the restrained drop in bullion prices.

The US federal budget report too stated that the fiscal deficit so far in 2013 is 15% lower than in 2012. This too is an indication for a downturn in financial risk of the US economy.
This decline in prices moves an investor away from Gold, as they do not consider gold to be a safe haven asset in such situation.

Stronger U.S. economic data like the lower Jobless claims, higher industrial production etc, recently, has lead to the selling pressure for gold. But again, it can be argued gold prices have held up fairly well in the wake of that stronger U.S. data.

Many investors still believe that there is still upward scope in gold and it is more sensible in being loyal to it. Counting quantitative easing measures in key economies and lurking risks in the euro zone are amongst the favorite reason to own gold as gold is always considered a hedge against inflation and economic distress

Looking at the Asian markets, gold demand was quite calm as most people have already made their purchases last month when gold prices dipped considerably.

However, importers now expect a rising demand for gold once the fiscal year ends and the festival of Holi onsets in India. Holi, Gudi Padwa and Akshaya Tritya are considered to be very auspicious days t buy gold and all these festivals are lined up for the month of March and April.

Bullion market participants will be watching the Federal Reserve's policy meeting next week. A hawkish tone would further hurt investors' interest in gold, but Asian buyers would make purchases if prices drop near February's levels.

Till then one needs to find answers to the following
Will the Euro crisis resurface after months of blissful peace?
A positive takeaway on gold is whether the good US economic data will continue to get better after sequester?
Can central banks continue to contain inflation after the rampant money printing programme?

The current situation seems to set gold as a better alternative should all of the above negative economic sentiment resurface. Gold prices have come down considerably and left an upside gap despite all the negative sentiments it has been receiving. 

We are not gold bugs at all just a humble observer who wish to share our views on why holding some precious metals is important.

“The primary purpose of this blog by Prithviraj Kothari - MD, RSBL, is to educate the masses of the current happenings in the Bullion world.”


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