RSBL Gold Silver Bars/Coins

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"

Monday, 20 May 2013


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.