RSBL Gold Silver Bars/Coins

Saturday, 19 May 2012


RSBL has received the prestigious EPCES Export Awards for outstanding export performance during the year 2009-10 from the Category-II Product Specific SEZ-Other than MSME in the category Gems & Jewellery.

It was presented by  Shri Jyotiraditya M. Scindia, Hon’ble Minister of State for Commerce & Industry. It was moment of joy and pride not only for me but for the entire RSBL Family.

Its purely the combined effort and consistent support from my team, that RSBL has reached where it is today. I also thank the Export promotion Council for recognizing our efforts.

Another feather to the cap- 2012 has lots in store for us.

Friday, 18 May 2012


Gold finished the session in New York smack bang in the middle of the range (1528-1552), just short of 1540, and it feels as though the market may have got itself caught a little short. After reaching a five month low (the market has fallen 3.40% in the four days prior to yesterday), it rebounded for the first time in 5 trading days on Thursday. The yellow metal continued to push higher in Asia on Thursday, gaining more than $10. Good selling on the futures exchange seemed to cap the market at 1550, but one gets the feeling there are stops lurking above and we may trade higher in the short term.

Bullion has erased the hard-fought gains made this year in a matter of sessions. It tumbled to a four-and-a-half month low on Wednesday to USD 1,527 per ounce. It had hit a record high of USD 1,920.30 per ounce in September last year.

However, on Thursday we saw the tables turn. Gold rallied more than 2.6 percent o n Thursday, its largest one-day gain since late January, as technical buy signals and new signs of a sluggish U.S. economy more than offset deepening despair over the euro zone.

After flirting with a bear market on Wednesday, down more than 20 percent from its September record, bullion rallied early after Philadelphia Federal Reserve data showed a contraction in factory activity in the U.S. mid-Atlantic region that rekindled some hope the Fed would plough more money into the system to stimulate the economy, traders said.

Technical buying also fueled gains after gold had nearly hit a key December low, trading just shy of key technical long-term support at the 100-week moving average of $1,515 per oz.
Psychologically and technically, $1,500 is the next big mark for gold

Greece is heading to new elections in June and uncertainty about its status in the euro zone remains high. Because of these concerns, investors are moving to cash, especially as every new headline seems to raise worries.

Paper currencies are in vogue right now, with the dollar bid up. Until people can use gold to buy their groceries or pay their mortgage, people are keeping cash on hand.

Right now, the gold market is in the middle of a battle between the paper traders and the holders of physical metal. We are seeing huge Chinese import stats for physical gold and robust demand elsewhere for physical metal. Overselling of precious metals created pressure resulting in a dip in gold prices.

Liquidation is taking place irrespective of market fundamentals. Jewelers don’t know what to do. Maybe when the price has stabilized at some levels, they will start to reenter the market

Increasingly risk-averse investors are taking refuge in the US dollar; its traditional inverse relationship with gold has been more prevalent in recent weeks. Despite its recovery, it remains vulnerable to a further drop after its longest stretch of losses in nearly five months.

Gold fell along with other more industrial commodities such as copper and crude oil, under pressure from an early rise of the dollar, which put silver on track for its longest stretch of consecutive daily losses in nearly four years. Fears a Greek exit from the euro zone would worsen the European debt crisis gripped European markets on Wednesday, sending shares and other riskier assets lower as investors shifted funds into safe havens like the U.S. dollar.

The prospect of improvement in physical demand for gold fro, the Indian jewellery sector took a knock on Wednesday with the drop in the rupee to a record low against the dollar, driven by the widespread risk aversion. Buying in India, the world’s largest bullion consumer, has emerged with the decline in the dollar-denominated gold price to 4 and half month low this week, but local dealers have said the weakness in the rupee could curb this. Definitely physical buying has gone up, although demand is not overwhelming.

Thursday, 3 May 2012


Gold surged to a high of 29770, quite close to its life time high of 29900.

Internationally gold reached an all time high of 1920$ in September 2011, by Wednesday noon gold reached 1662$ in the international market. Though gold is almost 150$ down from its high, the current rates in rupee terms have almost reached its life time high.

The main reason behind this is the weakening of the rupee as against the dollar. The 15% depreciation in the value of the rupee against the dollar since September 2011 is aiding the upswing in gold prices

Assuming that if gold would have crossed its life time high of 1920$ today, then gold would be selling at Rs.32000 in the Indian market.

Though Retailers have sold gold at 30,000 (life-time high), but the rates in the wholesale market have not crossed 29770. Jewellers and traders are not happy with this increase, as the demand has weakened despite of the festive and marriage season.

This Akshaya Tritiya, gold sales saw an increase of only 25%, which would have been much more otherwise. With gold prices shooting up day-by-day, marriage buying of gold seems to have taken a severe beating. Most jewellers are fully stocked after lower-than-expected sales during this season

The US Federal Reserve’s decision to keep interest rate unchanged, indication of a third round of quantitative easing measures, and renewed concerns over the financial health of the euro zone sparked by a downgrade of Spain’s sovereign debt have put the spotlight on bullion in the past few days.

The trading sentiment further bolstered as the mental in overseas markets climb for a fifth day for the best run since January as concern of deepening euro-zone debt crisis boosted demand for alternate investment. Analysts say the precious metal is likely to continue its rising streak at least for some more time.

Many even believe that gold is in a bubble stage. I doubt we are in a bubble stage. When you went to an investment conference in 1989, everybody owned Japanese stocks. And in 2000, everybody owned tech stocks. That is the bubble, when the majority of market participants own an asset. I think there are more people that own a tech company’s stock than gold.

In the long run, that central banks all over the world are going to print money because they know nothing else. The purchasing power of currencies will continue to go down. In other words, the price of gold and silver will move up in the long run.