Gold prices traded in the range of $821-$883.6 a troy ounce with prices rallying strongly in the initial three sessions, as the depreciating dollar enhanced the appeal of metal as an alternate asset class.
The dollar fell significantly against the euro and fell to $1.4719 levels as US Federal Reserve Bank slashed the target lending rate by 75 basis points to 0.25%, the lowest ever. The consensus was of a 50 basis points cut. With policy makers emphasizing that Fed will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability;the metal gold was seen to be strongly buoyant.
Nevertheless, gold prices pared gains as oil fell below $33 a barrel and dollar recovered on speculation that decline in dollar was too steep. Reports showing lesser than expected decline in initial jobless claims and Philadelphia Fed Index, followed by European Commission comments that the euro region may suffer a “substantial” effect from the financial crisis next year supportedthe gains in dollar.
Today on the electronic session, gold prices are currently trading higher by around six dollars,backed by weak dollar and firmer opening in crude oil prices. Silver also gained. On the economic front, we have euro-zone industrial new orders to watch for. The data is expected to side down further in the month of November by further 4%.
On the whole, we expect a higher opening ondomestic MCX market and prices are expected to be trading sideways for the day.
Monday, December 22, 2008
IsDMA President Ganz Calls on Bank of Israel to Establish $2.25 Billion Credit Fund for Israeli Diamond Industry
Ramat Gan, Israel, December 17, 2008: Israel Diamond Manufacturers Association (IsDMA) President Moti Ganz has called on the Bank of Israel to intervene in the terms of credit made available to the Israeli Diamond Industry.
In a letter sent this week to Prof. Stanley Fischer, Governor of the Bank of Israel, Ganz proposed that the Bank establish a $2.25 billion credit fund for the diamond industry out of the central bank’s foreign exchange surplus. This credit would be made available to diamantaires through the banks financing the industry – Union Bank, Israel Discount Bank, Bank Leumi, First International Bank and Mizrahi Tefahot Bank. Diamantaires would continue to pay individualized margins according to the company’s level of risk, but would save the cost of raising the funds (LIBOR).
In addition, Ganz asked Fischer to instruct the banks to reduce the margins charged to diamantaires to the level of January 2008 – between 1 and 3 percent. He wrote that since the beginning of the financial crisis the banks have raised margins unilaterally by 0.25 to 1 percent. “This increase is a major burden to the industry,” Ganz wrote.
Ganz cited stiff competition which has caused the industry to grant buyers credit of 120 to 160 days. Since the start of the financial crisis, Ganz wrote, the Israeli banks have seriously reduced the credit available to the industry.
“The Israeli diamond industry’s total debt to the banks is about $2.3 billion, a level it has maintained for several years despite an impressive growth in exports,” wrote Ganz. He added that the number of bankruptcies in the industry is minimal, not exceeding more than one or two a year. This, he stated, attests to the financial strength of the industry and its stability.
Ganz added that the diamond industry is the largest export industry in Israel, with polished exports in 2007 reaching over $7 billion (about 20% of the country’s total industrial exports), and with a net turnover of $20 billion.
Ganz concluded that the diamond industry was not a cause of the current economic crisis, yet is being forced to deal with its serious consequences daily. “We are the only industry in Israel that has not leveraged itself, has not issued bonds to the detriment of the economy,” he wrote. Ganz added that the Israeli diamond industry, which supports tens of thousands of families in Israel, should not be made to pay the price of errors caused by others.
In a letter sent this week to Prof. Stanley Fischer, Governor of the Bank of Israel, Ganz proposed that the Bank establish a $2.25 billion credit fund for the diamond industry out of the central bank’s foreign exchange surplus. This credit would be made available to diamantaires through the banks financing the industry – Union Bank, Israel Discount Bank, Bank Leumi, First International Bank and Mizrahi Tefahot Bank. Diamantaires would continue to pay individualized margins according to the company’s level of risk, but would save the cost of raising the funds (LIBOR).
In addition, Ganz asked Fischer to instruct the banks to reduce the margins charged to diamantaires to the level of January 2008 – between 1 and 3 percent. He wrote that since the beginning of the financial crisis the banks have raised margins unilaterally by 0.25 to 1 percent. “This increase is a major burden to the industry,” Ganz wrote.
Ganz cited stiff competition which has caused the industry to grant buyers credit of 120 to 160 days. Since the start of the financial crisis, Ganz wrote, the Israeli banks have seriously reduced the credit available to the industry.
“The Israeli diamond industry’s total debt to the banks is about $2.3 billion, a level it has maintained for several years despite an impressive growth in exports,” wrote Ganz. He added that the number of bankruptcies in the industry is minimal, not exceeding more than one or two a year. This, he stated, attests to the financial strength of the industry and its stability.
Ganz added that the diamond industry is the largest export industry in Israel, with polished exports in 2007 reaching over $7 billion (about 20% of the country’s total industrial exports), and with a net turnover of $20 billion.
Ganz concluded that the diamond industry was not a cause of the current economic crisis, yet is being forced to deal with its serious consequences daily. “We are the only industry in Israel that has not leveraged itself, has not issued bonds to the detriment of the economy,” he wrote. Ganz added that the Israeli diamond industry, which supports tens of thousands of families in Israel, should not be made to pay the price of errors caused by others.
Tuesday, November 25, 2008
Global meltdown rubs off the sheen from Indian diamond industry
India's diamond industry seems to be losing its sheen with global recession hitting its exports.
Those associated closely with the industry at Surat in Gujarat are struggling to survive the current recessionary trends.
The traders say that the diamonds processed in Surat are sent to various parts of the world including the Middle East from where manufactured jewellery is then sold across the globe.
The US, one of the largest markets for diamonds and other gemstones, would import 60% of diamonds manufactured in Surat. But these imports have come down by half due to deep economic crisis that America is currently reeling under.
With the financial turmoil spilling over to the rest of the world, the demand for diamond jewellery is declining in the international markets. Diamond traders said that domestic markets too are no better and don't see any respite in the near future.
"Due to the global recessionary trends the diamond industry world over is facing problems and so is our fraternity in Surat. The effect is being feltmore than ever before and we are trying to fight it. But how long would the industry be able to fight it and survive, it is a matter of concern. I don'tsee any respite in the near future," said CP Wananai, President, Diamond Association, Surat.
The Surat diamond industry is worth Rs800,000mn and accounts for more than half of the total diamond exports from India. It employs more than 700,000 workers from across the country. Over 2.5mn people are indirectly associated with the trade. These workers are uncertain about their jobs. The one-month annual vacation that these workers get during Diwali, the Hindu festival of lights, is being extended, sparking off fears that many companies might have to close down.
"I have been in this industry for around 10 years now. We have already had a vacation of 40 days now. My salary is just Rs7000 per month and I had spent almost all of it during the festive season. I don't have anything now. I am somehow trying to survive. The situation is really bad. I don't even want to think about what can be done if the situation doesn't improve," said Manish Bhai, a diamond worker.
With the 40-day vacation ending on Monday (November 17), the diamond unions are scheduled to meet to discuss the situation and likely possibilities to save the livelihood of the millions of workers associated with diamond trade. Reducing the number of working hours and decreasing the salary proportionately are among various options being thought of as against laying off of workers.
Meanwhile, the diamond industry is lobbying hard to get a bailout package from the government. India's diamond industry has been reeling under a spate of problems. Around 2,000 factories out of 10,000 have already shut down.
The worst-hit diamond cutters and polishers have not yet lost hope about the markets regaining their lost glitter but feel that would take a couple of months.
Jewels, watches set to fetch lower prices at auction
While the world is facing the biggest global financial crisis since the Great Depression, experts are confident the best diamonds and rare gems tofetch good prices in Geneva.
Sotheby's are offering over 400 luxury jewels in their autumn "Magnificent Jewels" sale. Sotheby's are confident their autumn jewels auction will sell well, although price levels for some luxury pieces have dropped by 20-30%.
"The volatility in all markets at the moment is quite remarkable, nobody can see which way this market's going", David Bennett, Sotheby's jewellery chairman for Europe and the Middle East told Reuters.
Sotheby's has had to reduce estimates for the flagship jewel auctions as a result of the world's financial crisis that has reduced appetites for luxury goods.
But while many lots were stranded in New York's Autumn art sales, which failed to meet low-end estimates the two best diamonds are expected to fetch good prices on Wednesday evening (November 19).
The jewel auction market is driven by top-end diamonds, which brokers and leading fine jewellers say have come off price peaks touched earlier this year to more sustainable levels.
"There is a historical precedent, because the last recession, if you like, was straight after the Gulf war, the first Gulf war in 1990. And between 1991 and 1997 were our greatest years of jewellery sales, including the three world records-the biggest diamond sales of $16mn,were in those years, 1990, 1993 and 1995, so there is maybe a precedent that people will look to diamonds, I'm pretty optimistic", Bennett said.
Sotheby's estimates that its star lot, a flawless deep blue diamond weighing 10.48 carats, could fetch $6mn to $9mn. And the Lesotho I, a light brown diamond of 71.73 carats mounted on a ring, has a catalogue estimate of $3mn-$5mn.
Discovered by a miner's wife in Lesotho in 1967, it was the largest of 18 to be cut on live television from a 601-carat rough diamond by US jeweller Harry Winston. It has remained in the gem box of an unidentified "lady of title" ever since.
The week kicked off Sunday night with Sotheby's sale of 200 timepieces.
Sotheby's are offering over 400 luxury jewels in their autumn "Magnificent Jewels" sale. Sotheby's are confident their autumn jewels auction will sell well, although price levels for some luxury pieces have dropped by 20-30%.
"The volatility in all markets at the moment is quite remarkable, nobody can see which way this market's going", David Bennett, Sotheby's jewellery chairman for Europe and the Middle East told Reuters.
Sotheby's has had to reduce estimates for the flagship jewel auctions as a result of the world's financial crisis that has reduced appetites for luxury goods.
But while many lots were stranded in New York's Autumn art sales, which failed to meet low-end estimates the two best diamonds are expected to fetch good prices on Wednesday evening (November 19).
The jewel auction market is driven by top-end diamonds, which brokers and leading fine jewellers say have come off price peaks touched earlier this year to more sustainable levels.
"There is a historical precedent, because the last recession, if you like, was straight after the Gulf war, the first Gulf war in 1990. And between 1991 and 1997 were our greatest years of jewellery sales, including the three world records-the biggest diamond sales of $16mn,were in those years, 1990, 1993 and 1995, so there is maybe a precedent that people will look to diamonds, I'm pretty optimistic", Bennett said.
Sotheby's estimates that its star lot, a flawless deep blue diamond weighing 10.48 carats, could fetch $6mn to $9mn. And the Lesotho I, a light brown diamond of 71.73 carats mounted on a ring, has a catalogue estimate of $3mn-$5mn.
Discovered by a miner's wife in Lesotho in 1967, it was the largest of 18 to be cut on live television from a 601-carat rough diamond by US jeweller Harry Winston. It has remained in the gem box of an unidentified "lady of title" ever since.
The week kicked off Sunday night with Sotheby's sale of 200 timepieces.
Israel Diamond Exchange celebrates 70th Anniversary
Ramat Gan, Israel, November 24, 2008: The Israel Diamond Exchange (IDE) celebrated its 70th anniversary last night at a gala event in the Mann Auditorium in Tel Aviv with the participation of thousands of diamantaires from Israel and abroad.
Special guests included Israel’s Minister of Industry, Trade and Labor Eli Yishai; Ramat Gan Mayor Zvi Bar; DTC Managing Director Varda Shine; Chairman of the World Diamond Council Eli Izhakoff; CIBJO President Gaetano Cavalieri and representatives from diamond exchanges in China, the U.S. and Europe.
Avi Paz, President of IDE and the World Federation of Diamond Bourses, thanked the many guests who came from all over the world, and said that their participation was a tribute to the importance of the Israeli diamond center within the world diamond industry.
About the world economic situation, Paz said: “At this time we must maintain our optimism. What we achieved over the past 70 years did not come easily! Our industry has gone through difficult times as well as periods of huge success and prosperity. At this time it is especially important to act with determination, optimism and cool-headedness.”
In his remarks Paz called upon Minister Yishai to act immediately to ensure that the Government’s emergency economic plan provides solutions for diamantaires harmed by the world economic crisis. Minister Yishai said that he would continue to do everything in his power to support the diamond industry. “Your leadership is a very special one – filled with wisdom, professionalism and modesty. You pursue your vocation with resoluteness and during this difficult time you are showing vision, determination and conviction. I believe in your abilities and I will always be at your service in all positions that I will hold,” he said.
Managing Director of Israel Discount Bank Giora Offer said that the Bank would stand firm in its support of the Israeli Diamond Industry. “I believe that you will continue to act in times of crisis with ethics, credibility and loyalty. Israel Discount Bank, the largest bank in the finance of Israel’s diamond industry, stands beside you. Together we will get through this period with a great deal of appreciation and esteem for your achievements of which we are all proud.”
One of the highlights of the evening was the bestowal of Honorary Membership in the Israel Diamond Exchange to DTC Managing Director Varda Shine. Avi Paz said: “Varda Shine is a pioneer in the global diamond industry. She is the only woman in the history of IDE to receive Honorary Membership. Varda is an excellent professional, a keen businesswoman, and above all a true friend of the Israel Diamond Exchange and the entire Israeli Diamond Industry.”
Shine thanked Avi Paz and the IDE for this award. “It is a great honor for me to receive this title and I feel proud to be the first woman to hold it,” she said. “The Israel Diamond Exchange has all it needs to succeed. Thanks to your human capital, entrepreneurship and strength you will know how to continue your path forward. We must all learn from the diamond during this period – to be transparent, clear and strong,” she added.
Shine reiterated that De Beers would significantly reduce the supply of rough diamonds in the near future and stressed that especially in these times it is important to remain optimistic. “The future of the diamond looks excellent, largely because there are no new mines in the world and the diamond is becoming rarer and rarer. At the same time, research is showing that during 2011 a growth in demand for diamonds is expected in countries with a developing middle class.”
Special guests included Israel’s Minister of Industry, Trade and Labor Eli Yishai; Ramat Gan Mayor Zvi Bar; DTC Managing Director Varda Shine; Chairman of the World Diamond Council Eli Izhakoff; CIBJO President Gaetano Cavalieri and representatives from diamond exchanges in China, the U.S. and Europe.
Avi Paz, President of IDE and the World Federation of Diamond Bourses, thanked the many guests who came from all over the world, and said that their participation was a tribute to the importance of the Israeli diamond center within the world diamond industry.
About the world economic situation, Paz said: “At this time we must maintain our optimism. What we achieved over the past 70 years did not come easily! Our industry has gone through difficult times as well as periods of huge success and prosperity. At this time it is especially important to act with determination, optimism and cool-headedness.”
In his remarks Paz called upon Minister Yishai to act immediately to ensure that the Government’s emergency economic plan provides solutions for diamantaires harmed by the world economic crisis. Minister Yishai said that he would continue to do everything in his power to support the diamond industry. “Your leadership is a very special one – filled with wisdom, professionalism and modesty. You pursue your vocation with resoluteness and during this difficult time you are showing vision, determination and conviction. I believe in your abilities and I will always be at your service in all positions that I will hold,” he said.
Managing Director of Israel Discount Bank Giora Offer said that the Bank would stand firm in its support of the Israeli Diamond Industry. “I believe that you will continue to act in times of crisis with ethics, credibility and loyalty. Israel Discount Bank, the largest bank in the finance of Israel’s diamond industry, stands beside you. Together we will get through this period with a great deal of appreciation and esteem for your achievements of which we are all proud.”
One of the highlights of the evening was the bestowal of Honorary Membership in the Israel Diamond Exchange to DTC Managing Director Varda Shine. Avi Paz said: “Varda Shine is a pioneer in the global diamond industry. She is the only woman in the history of IDE to receive Honorary Membership. Varda is an excellent professional, a keen businesswoman, and above all a true friend of the Israel Diamond Exchange and the entire Israeli Diamond Industry.”
Shine thanked Avi Paz and the IDE for this award. “It is a great honor for me to receive this title and I feel proud to be the first woman to hold it,” she said. “The Israel Diamond Exchange has all it needs to succeed. Thanks to your human capital, entrepreneurship and strength you will know how to continue your path forward. We must all learn from the diamond during this period – to be transparent, clear and strong,” she added.
Shine reiterated that De Beers would significantly reduce the supply of rough diamonds in the near future and stressed that especially in these times it is important to remain optimistic. “The future of the diamond looks excellent, largely because there are no new mines in the world and the diamond is becoming rarer and rarer. At the same time, research is showing that during 2011 a growth in demand for diamonds is expected in countries with a developing middle class.”
Monday, November 24, 2008
Indian jewellers in recessionary pain: Reuters
Jaipur jewellery manufacturers and exporters are in a recession pain. Gobal recession disease have caught the traders and the very first symptom is falling export orders.
Until last year traders dealing in gems and jewellery segment were earning huge profits. But now the situation has reversed, gem city is facing an adverse impact of recession in the global economy.
Recession has directly hit the jewellery manufacturers and exporters as there is no more order booking coming from the offshore buyers. Jeweller exporters fear the impact would be felt in the coming quarter.
"As far as global recession is concerned, people are thinking that the sales may go down. If the sales go down during the Christmas season, then the impact can be seen in the next quarter," said Jagdish Tambi, Spokesperson, Jaipur Jeweller's Association.
Majority of the jewellery is exported to the US and the there has been a sharp fall in the quantity of export due to recession in the US. Falling exports has also resulted in sizable retrenchment of workers in the jewellery industry.
"There are a lot of people who have lost jobs because export orders have been cancelled. Lesser order, lesser work, every body can feel the impact. It is not that the recession is affecting the US only," said Sudheer Kasliwal, an exporter.
What started in the US about 18 months ago as a housing mortgage crisis has slowly engulfed the whole world and India is no exception.
Until last year traders dealing in gems and jewellery segment were earning huge profits. But now the situation has reversed, gem city is facing an adverse impact of recession in the global economy.
Recession has directly hit the jewellery manufacturers and exporters as there is no more order booking coming from the offshore buyers. Jeweller exporters fear the impact would be felt in the coming quarter.
"As far as global recession is concerned, people are thinking that the sales may go down. If the sales go down during the Christmas season, then the impact can be seen in the next quarter," said Jagdish Tambi, Spokesperson, Jaipur Jeweller's Association.
Majority of the jewellery is exported to the US and the there has been a sharp fall in the quantity of export due to recession in the US. Falling exports has also resulted in sizable retrenchment of workers in the jewellery industry.
"There are a lot of people who have lost jobs because export orders have been cancelled. Lesser order, lesser work, every body can feel the impact. It is not that the recession is affecting the US only," said Sudheer Kasliwal, an exporter.
What started in the US about 18 months ago as a housing mortgage crisis has slowly engulfed the whole world and India is no exception.
Gold prices climb due to global economic slump: Karvy Comtrade
Gold prices traded in the range of $729.6-$802.8 a troy ounce, as the firmer US dollar propelled a volatile movement in the precious metals sector. The slump in equities in conjunction to the deepening crisis has eroded the investor confidence, thereby proving negative for the precious metals. The price of crude oil dropping below $49 a barrel renewed speculation that a global recession will cut demand for precious metals and raw materials. The dollar rose against the euro as prices paid to U.S. producers plunged and homebuilder confidence fell, increasing demand for the safety of government debt indicted by the substantial increase in TIC flows.
However, prices erased earlier losses and moved higher on speculation the Federal Reserve will lower interest rates to stimulate the U.S. economy, boosting the appeal of the precious metal as an alternative asset. The yield on two-year Treasury notes dropped below 1 percent for the first time ever on bets the Fed will cut its benchmark rate next month. The poor housing sector performance, steep increase in jobless claims and contracting manufacturing activity helped gold prices to move higher. On the weekend, gold prices climbed as the global economic slump dragged down asset prices and boosted the appeal of the precious metal as a store of value.
According to the world gold council, the demand for the precious metal increased 18 % in the third quarter as lower prices encouraged purchases by jewelers and as investors sought a haven from the credit crisis. So-called identifiable investment, which includes purchases through exchange-traded funds and of bars and coins, climbed 56 % to 382.1 tons during the quarter.
Other precious metals, which have wider industrial applications than gold, fell on concern that a global recession may damp demand for all commodities. The International Monetary Fund projected that economies in the U.S., Japan and the euro zone will all shrink in 2009.
This week, fundamentally we expect gold prices to trade sideways amid lower US GDP growth (P), declining home sales and durable goods orders. The gains are likely to be limited by the strengthening dollar and poor economic condition in euro-zone.
However, prices erased earlier losses and moved higher on speculation the Federal Reserve will lower interest rates to stimulate the U.S. economy, boosting the appeal of the precious metal as an alternative asset. The yield on two-year Treasury notes dropped below 1 percent for the first time ever on bets the Fed will cut its benchmark rate next month. The poor housing sector performance, steep increase in jobless claims and contracting manufacturing activity helped gold prices to move higher. On the weekend, gold prices climbed as the global economic slump dragged down asset prices and boosted the appeal of the precious metal as a store of value.
According to the world gold council, the demand for the precious metal increased 18 % in the third quarter as lower prices encouraged purchases by jewelers and as investors sought a haven from the credit crisis. So-called identifiable investment, which includes purchases through exchange-traded funds and of bars and coins, climbed 56 % to 382.1 tons during the quarter.
Other precious metals, which have wider industrial applications than gold, fell on concern that a global recession may damp demand for all commodities. The International Monetary Fund projected that economies in the U.S., Japan and the euro zone will all shrink in 2009.
This week, fundamentally we expect gold prices to trade sideways amid lower US GDP growth (P), declining home sales and durable goods orders. The gains are likely to be limited by the strengthening dollar and poor economic condition in euro-zone.
Friday, October 24, 2008
Titan Industries Net Profit up 88.2%
Titan Industries reported that its second quarter Net Profit has jumped up by 88.2%. The company reported its net profit increased to Rs87.14cr from Rs46.30cr in same quarter previous year.
The Company registered an increase of 52.4% in its income which was Rs1,104.85cr as compared to Rs725.11cr, during the corresponding period last year.
The groups’s core businesses-Watches and Jewellery, have grown significantly over the previous year, the company said in a statement.
The Company’s Watch sales grew by 18.8% with its income increasing from Rs255.34cr during the second quarter of last year to Rs303.45cr in second quarter of 2008.
While the Jewellery income grew by 71.4% to Rs752.18cr versus Rs438.84cr in same period previous year. The spurt in jewellery income was also due to the increase in gold price during the quarter, the company said.
“We have had a significant expansion in the network. Despite high volatility in gold prices, the Tanishq and Gold Plus showrooms continue to attract discerning customers who value our products and service offerings. We will be launching a number of new collections in watches, jewellery and eyewear categories during the coming festival season,” said MD of Titan Industries, Bhaskar Bhat.
The group’s other businesses grew by 93.7% from Rs17.62cr during the quarter in 2007 of last year to Rs34.13cr during the corresponding period this year.
The company said in a statement that the first half of the current year has shown good growth and its Net profit has jumped by 102.5%, from Rs58.94cr during last year to Rs119.36cr this year.
Watch sales have grown over 12% to Rs475.34cr and Jewellery sales have grown by 51% to Rs1,367.90cr compared to last year. Total sales are also reported to be up by 38.2% from Rs1,391.70cr during last year to Rs1,923.91cr this year.
The Company registered an increase of 52.4% in its income which was Rs1,104.85cr as compared to Rs725.11cr, during the corresponding period last year.
The groups’s core businesses-Watches and Jewellery, have grown significantly over the previous year, the company said in a statement.
The Company’s Watch sales grew by 18.8% with its income increasing from Rs255.34cr during the second quarter of last year to Rs303.45cr in second quarter of 2008.
While the Jewellery income grew by 71.4% to Rs752.18cr versus Rs438.84cr in same period previous year. The spurt in jewellery income was also due to the increase in gold price during the quarter, the company said.
“We have had a significant expansion in the network. Despite high volatility in gold prices, the Tanishq and Gold Plus showrooms continue to attract discerning customers who value our products and service offerings. We will be launching a number of new collections in watches, jewellery and eyewear categories during the coming festival season,” said MD of Titan Industries, Bhaskar Bhat.
The group’s other businesses grew by 93.7% from Rs17.62cr during the quarter in 2007 of last year to Rs34.13cr during the corresponding period this year.
The company said in a statement that the first half of the current year has shown good growth and its Net profit has jumped by 102.5%, from Rs58.94cr during last year to Rs119.36cr this year.
Watch sales have grown over 12% to Rs475.34cr and Jewellery sales have grown by 51% to Rs1,367.90cr compared to last year. Total sales are also reported to be up by 38.2% from Rs1,391.70cr during last year to Rs1,923.91cr this year.
Wednesday, October 22, 2008
Gold still on the back foot: Standard Bank
“Gold is still on the back foot. With more dollar strength in the pipeline, the yellow metal is putting up little resistance,” said a Standard Bank report on Wednesday.
On MCX, the December contract for gold was trading at (14:54 IST) Rs12,188, down by about 1.5% from its day’s high of Rs12,317 on Wednesday.
MCX Gold December gold prices plunged to Rs12,307 levels and settled at Rs12,377 levels on Tuesday.
“Market is expected to come down and the next supports can be seen at Rs12,200 and then Rs12,050 levels,” said a Karvy Comtrade report on Wednesday.
The report also mentioned that the resistances can be seen at Rs12,400 and then at Rs12,436 levels. “If market sustains below Rs12,436 we may expect gold trading lower. We recommend taking short positions for the day,” it added.
The Standard Bank report also mentioned that after a steady opening just below $800 in Tokyo, gold moved gradually south as the euro weakened. At $790, some stops were triggered, and the metal quickly fell to $785, it said.
“With the dollar still on the rise, gold could remain under pressure today. Primary support is at $757, and a secondary support band at $742 - $720. Resistance is at $794, $810 and $818,” it said.
On MCX, the December contract for gold was trading at (14:54 IST) Rs12,188, down by about 1.5% from its day’s high of Rs12,317 on Wednesday.
MCX Gold December gold prices plunged to Rs12,307 levels and settled at Rs12,377 levels on Tuesday.
“Market is expected to come down and the next supports can be seen at Rs12,200 and then Rs12,050 levels,” said a Karvy Comtrade report on Wednesday.
The report also mentioned that the resistances can be seen at Rs12,400 and then at Rs12,436 levels. “If market sustains below Rs12,436 we may expect gold trading lower. We recommend taking short positions for the day,” it added.
The Standard Bank report also mentioned that after a steady opening just below $800 in Tokyo, gold moved gradually south as the euro weakened. At $790, some stops were triggered, and the metal quickly fell to $785, it said.
“With the dollar still on the rise, gold could remain under pressure today. Primary support is at $757, and a secondary support band at $742 - $720. Resistance is at $794, $810 and $818,” it said.
WGC, HDFC Bank tie up to extend personal loans
World Gold Council (WGC) has got-together with HDFC Bank to offer personal loans for gold buyers. The step taken is in effort to boost gold sales in India. The service is expected to be launched across the country over next few days.
HDFC will provide personal loans at an interest rate of 16%. In place of security against the loan the bank will keep back the purchased gold on behalf of the customers until the entire cost is paid back to the bank. Starting three months from the date of purchase the consumer can pay the entire amount of loan in installments.
Initially the bank will provide loans for up to 50gm of pure gold but plans to provide loans for bigger investors too in the future.
HDFC will provide personal loans at an interest rate of 16%. In place of security against the loan the bank will keep back the purchased gold on behalf of the customers until the entire cost is paid back to the bank. Starting three months from the date of purchase the consumer can pay the entire amount of loan in installments.
Initially the bank will provide loans for up to 50gm of pure gold but plans to provide loans for bigger investors too in the future.
Tuesday, October 21, 2008
Sona Swiss unveils 'Gifts in Gold' collection for Diwali
Sona Swiss unveiled 'Gifts in Gold' for Diwali. The new range launched is a diverse collection of products in 24 karat gold foil made with unique 3D technology.
The range includes Divine Collection, Flower Garland, Gold foil playing cards, Art décor frames and new range of gold flower collections and lots more.
The 24 karat gold foil art décor products range are handcrafted and have been specially designed and created using traditional goldsmith's skill combined with the latest patented 3D Art Technology.
‘The Divine collection’ includes 3D frames of Ganesha, Laxmi, Saraswati, Durga, Ganesh-Laxmi Pair, Ganesh-Laxmi-Saraswati Trio, Balaji, Shreenathji and Radha Krishna while the ‘Gold flower collection’ includes 24k gold rose, 24k gold carnation, flower brooch/ hair accessory collection, bouquet, 24k gold foil pendants and 24k gold cards.
All the products are made of pure 24 carat Gold leaf with a purity of 999.9 in a thousand. The company has also been independently certified for their gold purity by the Assay offices in London and New York.
All the gold products are also certified from Taiwan, USA and the gold foil products are patented for designing and manufacturing. All gold materials used by the company are of high purity and are imported from Switzerland.
The range includes Divine Collection, Flower Garland, Gold foil playing cards, Art décor frames and new range of gold flower collections and lots more.
The 24 karat gold foil art décor products range are handcrafted and have been specially designed and created using traditional goldsmith's skill combined with the latest patented 3D Art Technology.‘The Divine collection’ includes 3D frames of Ganesha, Laxmi, Saraswati, Durga, Ganesh-Laxmi Pair, Ganesh-Laxmi-Saraswati Trio, Balaji, Shreenathji and Radha Krishna while the ‘Gold flower collection’ includes 24k gold rose, 24k gold carnation, flower brooch/ hair accessory collection, bouquet, 24k gold foil pendants and 24k gold cards.
All the products are made of pure 24 carat Gold leaf with a purity of 999.9 in a thousand. The company has also been independently certified for their gold purity by the Assay offices in London and New York.
All the gold products are also certified from Taiwan, USA and the gold foil products are patented for designing and manufacturing. All gold materials used by the company are of high purity and are imported from Switzerland.
Analysts expect gold to resume lower trend
Market is expected to make a higher opening and the immediate resistance can be seen at Rs12,800 levels. Likewise, the supports are at Rs12,650 and then Rs12,570 levels. Analysts are expecting gold to resume lower trend after a brief higher correction.
Gold prices remained range bound and traded sideways in Monday’s session, in the absence of any major economic trigger.
The only economic data from the US was the leading indicator for the month of September, which unexpectedly rose thereby giving a lift to the dollar, said a Kravy Comtrade report.
For the day, as the market awaits no economic data, prices are likely to remain sideways. However the report also said that the strengthening US dollar is likely to put pressure on the bullion market, hence indicating a bias on the lower side.
The dollar advanced for a fifth day against the euro after Federal Reserve Chairman Ben Bernanke endorsed additional fiscal stimulus to support the US economy. The dollar traded at 18-month high levels against the euro on this act of the chairman, it said.
The MCX December contract for gold prices were seen trading sideways while closing it formed a technical Doji pattern in the daily chart and closed at Rs12,682 levels.
Gold prices remained range bound and traded sideways in Monday’s session, in the absence of any major economic trigger.
The only economic data from the US was the leading indicator for the month of September, which unexpectedly rose thereby giving a lift to the dollar, said a Kravy Comtrade report.
For the day, as the market awaits no economic data, prices are likely to remain sideways. However the report also said that the strengthening US dollar is likely to put pressure on the bullion market, hence indicating a bias on the lower side.
The dollar advanced for a fifth day against the euro after Federal Reserve Chairman Ben Bernanke endorsed additional fiscal stimulus to support the US economy. The dollar traded at 18-month high levels against the euro on this act of the chairman, it said.
The MCX December contract for gold prices were seen trading sideways while closing it formed a technical Doji pattern in the daily chart and closed at Rs12,682 levels.
Monday, October 20, 2008
US Federal testimony awaited: Karvy Comtrade
On account of weakening US dollar today bullion prices are trading higher by almost $12 on account of weakening US dollar. The dollar is seen to weaken on concern that the US Federal Chairman may forecast a prolonged downturn when he speaks today.
Ben Bernanke will testify at the House Budget Committee on the economic outlook and financial markets at 10 am in Washington. The continued poor economic data emerging from the nation has lead to poor economic outlook for the world’s largest economy.
Single-family home building sank to the slowest pace in 26 years in the US in September and the industrial production index dropping to 2.5 years lows, has increased lower economic prospects. The economic sentiment is badly hit as there seems to be no symptoms of revival in the housing sector.
No major economic data is awaited today; however the outcome of the US Federal chairman’s testimony will be crucial to watch out for. Prices are likely to remain on the sidelines for the day, on back of the weaker US dollar and uncertainty of the economic revival.
“The December contract gold on MCX traded lower and posted a lower closing at Rs12,587 levels. Market is moving lower as it is trading below the 50-day EMA in the daily chart. Market is likely to take an initial correction and the immediate resistance is seen at Rs12,624-Rs12,650 levels. If prices are sustaining below the resistance we may expect market trading lower. The supports are at Rs12,400 then Rs12,325 levels,” said a daily commodity report by Karvy Comtrade.
Ben Bernanke will testify at the House Budget Committee on the economic outlook and financial markets at 10 am in Washington. The continued poor economic data emerging from the nation has lead to poor economic outlook for the world’s largest economy.
Single-family home building sank to the slowest pace in 26 years in the US in September and the industrial production index dropping to 2.5 years lows, has increased lower economic prospects. The economic sentiment is badly hit as there seems to be no symptoms of revival in the housing sector.
No major economic data is awaited today; however the outcome of the US Federal chairman’s testimony will be crucial to watch out for. Prices are likely to remain on the sidelines for the day, on back of the weaker US dollar and uncertainty of the economic revival.
“The December contract gold on MCX traded lower and posted a lower closing at Rs12,587 levels. Market is moving lower as it is trading below the 50-day EMA in the daily chart. Market is likely to take an initial correction and the immediate resistance is seen at Rs12,624-Rs12,650 levels. If prices are sustaining below the resistance we may expect market trading lower. The supports are at Rs12,400 then Rs12,325 levels,” said a daily commodity report by Karvy Comtrade.
Saturday, October 18, 2008
GJEPC's new office at Bharat Diamond Bourse
The Gem and Jewellery Export Promotion Council (GJEPC) shifts its office to the Bharat Diamond Bourse (BDB). On 9th October, an auspicious and festive day of Dussera in India, the Council shifted its exhibition cell to BDB. It will relocate its office within two weeks.
At the occasion, dignitaries’ from the diamond industry such as Anup Mehta, President BDB, Vasant Mehta, Chairman, GJEPC, Bakul Mehta, Convener – Diamond Panel , Nirupa Bhat, GIA, Diamantaires Ashish Mehta- Kantilal & Chhotalal, Kirti Doshi , Nirmal Barmecha, and also the GJEPC working committee were amongst the others present.
The Intent is to consolidate Mumbai’s entire diamond industry at one location. Presently, the industry is concentrated at two to three zones in Mumbai.
Tuesday, October 14, 2008
Bharat Diamond Bourse launches
According to a report by the Gem and Jewellery Export Promotion Council (GJEPC) the new diamond bourse in India has officially been launched last week.
The GJEPC inaugurated its office at the Bharat Diamond Bourse in Bandra-Kurla complex, Mumbai on 9 October. Customs and some of the first offices from other sectors of the industry are likely to make the move to the Bharat Diamond Bourse by end of this year.
Wednesday, October 8, 2008
Tanishq unveils hi-end jewellery collection ‘Aleya’
Tanishq announced the launch of their exquisite ‘Aleya’ collection, a range of hi-end diamond jewellery set in 22k gold.
Aleya, which means "to rise or ascend" in Hebrew or "highborn or of the highest social standing" in Arabic, is a mixture of polki or uncut diamond and semi-precious stones like rubies and tourmalines set in 22 karat gold with an open setting.
"We at Tanishq aim at offering the best and the latest design in line with
the existing trends. Aleya Collection from Tanishq is designed keeping in mind the demand for variations in diamond jewellery and also a requirment for the forthcoming wedding season. We have about 150 designs ranging from neckwear, earring, finger ring etc. that is carfted using uncut diamonds and semi-precious stones," said Sangeeta Dewan, Head of Tanishq’s Design Studio.
The collection is priced Rs40,000
onwards and will be available at 50 Tanishq's stores across all major metros and select tier-II cities.
Tanishq’s jewellery is manufactured in a fully integrated manufacturing plant with state-of-the-art equipment. The Tanishq retail chain currently includes 112 exclusive boutiques in 75 cities, making it India's first and largest jewellery retail store chain.
Aleya, which means "to rise or ascend" in Hebrew or "highborn or of the highest social standing" in Arabic, is a mixture of polki or uncut diamond and semi-precious stones like rubies and tourmalines set in 22 karat gold with an open setting."We at Tanishq aim at offering the best and the latest design in line with
the existing trends. Aleya Collection from Tanishq is designed keeping in mind the demand for variations in diamond jewellery and also a requirment for the forthcoming wedding season. We have about 150 designs ranging from neckwear, earring, finger ring etc. that is carfted using uncut diamonds and semi-precious stones," said Sangeeta Dewan, Head of Tanishq’s Design Studio.The collection is priced Rs40,000
onwards and will be available at 50 Tanishq's stores across all major metros and select tier-II cities. Tanishq’s jewellery is manufactured in a fully integrated manufacturing plant with state-of-the-art equipment. The Tanishq retail chain currently includes 112 exclusive boutiques in 75 cities, making it India's first and largest jewellery retail store chain.
Tuesday, October 7, 2008
Precious metals shine: Walter de Wet
Yesterday turned into a disaster for equities, crude oil and base metals. However, precious metals showed their mettle. With financial markets in such disarray, gold was the happy beneficiary.
After an uninspired start by equities in Asia yesterday morning, markets deteriorated as the day progressed. The FTSE in London shed 7.85%, followed by the S&P and Dow clocking losses of 3.85% and 3.58% respectively. Equities in Asia are listless again this morning in the wake of yesterday's shocking stock performances in Europe and the US after markets in Asia had closed. However, today should be less volatile trading as financial market investors regroup.
With panic spreading yesterday, the US dollar simply shone. It went from strength to strength, pushing from $1.3705 in Hong Kong to $1.3444 against the euro in New York. Should sentiment steady today, the dollar might give up some of these gains. However, we believe the euro will remain under pressure against the greenback in coming months.
Central bankers around the world, specifically European central bankers, are likely to work ceaselessly to return stability to financial markets. While a surprise interest rate cut is not our base-case scenario, we believe the odds of this have risen in Europe and the US. ECB president, Mr Trichet, will speak later today, followed by Fed Chair Bernanke. Markets will be scrutinizing their comments.
Gold started the day steadily, drifting around $830. But with panic infecting equity markets, investors piled into the yellow metal when European markets opened. Gold then climbed to $875.5 at the PM Fix. What makes this rally so noteworthy is that it happened despite a rampant US dollar. Towards the close in New York, gold had to surrender some gains; it closed at $864. Primary support is at $853, and secondary support at $843 and $822. Resistance is at $875, $888, and $906.
Silver started the day on the back foot, losing 30 cents in Asia, to trade at $11.00. But with gold pushing higher in Europe, silver followed, touching $11.50. In choppy trade, it bounced between $11.15 and $11.40. Support fell away towards the close, and silver closed at $11.04. Primary support is at $10.94 and secondary support at $10.64 - $10.50. Primary resistance is at $11.52, and secondary at $11.80.
Platinum also benefited from financial market uncertainty, tracking gold. It gained from $930 to just around $1,000 in New York. With momentum fading for gold, platinum closed at $973.
Palladium is still holding up well. Although trade has been erratic, it seems to have settled at $195 - $205. It closed at $198.
Rhodium dropped again, fixing at $3,195 in New York.
After an uninspired start by equities in Asia yesterday morning, markets deteriorated as the day progressed. The FTSE in London shed 7.85%, followed by the S&P and Dow clocking losses of 3.85% and 3.58% respectively. Equities in Asia are listless again this morning in the wake of yesterday's shocking stock performances in Europe and the US after markets in Asia had closed. However, today should be less volatile trading as financial market investors regroup.
With panic spreading yesterday, the US dollar simply shone. It went from strength to strength, pushing from $1.3705 in Hong Kong to $1.3444 against the euro in New York. Should sentiment steady today, the dollar might give up some of these gains. However, we believe the euro will remain under pressure against the greenback in coming months.
Central bankers around the world, specifically European central bankers, are likely to work ceaselessly to return stability to financial markets. While a surprise interest rate cut is not our base-case scenario, we believe the odds of this have risen in Europe and the US. ECB president, Mr Trichet, will speak later today, followed by Fed Chair Bernanke. Markets will be scrutinizing their comments.
Gold started the day steadily, drifting around $830. But with panic infecting equity markets, investors piled into the yellow metal when European markets opened. Gold then climbed to $875.5 at the PM Fix. What makes this rally so noteworthy is that it happened despite a rampant US dollar. Towards the close in New York, gold had to surrender some gains; it closed at $864. Primary support is at $853, and secondary support at $843 and $822. Resistance is at $875, $888, and $906.
Silver started the day on the back foot, losing 30 cents in Asia, to trade at $11.00. But with gold pushing higher in Europe, silver followed, touching $11.50. In choppy trade, it bounced between $11.15 and $11.40. Support fell away towards the close, and silver closed at $11.04. Primary support is at $10.94 and secondary support at $10.64 - $10.50. Primary resistance is at $11.52, and secondary at $11.80.
Platinum also benefited from financial market uncertainty, tracking gold. It gained from $930 to just around $1,000 in New York. With momentum fading for gold, platinum closed at $973.
Palladium is still holding up well. Although trade has been erratic, it seems to have settled at $195 - $205. It closed at $198.
Rhodium dropped again, fixing at $3,195 in New York.
Monday, October 6, 2008
Nirupa Bhatt appointed as Chairperson of FICCI's Gem and Jewellery Sub Committee
Nirupa Bhatt, MD, Gemological Institute of America (GIA) India Laboratory Pvt Ltd, has been appointed as the Chairperson-Sub Committee Quality and Standardisation of FICCI's Gem and Jewellery Committee.
"India has the potential to be the global manufacturing hub for cutting and polishing of diamond and gemstones as well as jewellery manufacturing. However, in order to achieve this it is imperative for the companies to be able to be recognised for consistency in quality. This is only possible if companies have documental systems and processes in place. Standards and technology together can become the enabler for achieving this," said Nirupa Bhatt.
"India has the potential to be the global manufacturing hub for cutting and polishing of diamond and gemstones as well as jewellery manufacturing. However, in order to achieve this it is imperative for the companies to be able to be recognised for consistency in quality. This is only possible if companies have documental systems and processes in place. Standards and technology together can become the enabler for achieving this," said Nirupa Bhatt.
The primary objective of the committee will be to promote use of technology in manufacturing and production to modernize and upgrade the current practices in the Indian gems and jewellery sector .
Platinum and Palladium hit multi-year lows in September
Platinum Group Metal (PGM) prices continued to fall in the month of September, with platinum and palladium hitting multi-year lows and all three metals posting double-digit month-on-month losses, said a Standard Bank report.
The PGMs traded far below their individual 200-day moving averages, driven lower in part by a stronger dollar and softer commodity prices in general, it said.
The report further added that the deteriorating outlook for the global economy was another contributing factor to the weakness in price. A significant source of downside pressure was attributed to data released during September showing marked declines in auto sales in Europe as well as in several key emerging markets, such as China and India.
The PGMs traded far below their individual 200-day moving averages, driven lower in part by a stronger dollar and softer commodity prices in general, it said.
The report further added that the deteriorating outlook for the global economy was another contributing factor to the weakness in price. A significant source of downside pressure was attributed to data released during September showing marked declines in auto sales in Europe as well as in several key emerging markets, such as China and India.
Silver more volatile than gold
Silver metal remained more volatile than the yellow metal in the month of September.
The overall trends in the two prices were very similar as an uncertain silver market allowed itself to be influenced by gold. Although the market feeling was, in line with the relative fundamentals of the two metals, that silver was the more sluggish of the two with respect to the upside, the Standard Bank report said.
Gold prices buffeted in September: Standard Bank
Gold prices were buffeted during the month of September in the same way as those of any other asset class, but in keeping with gold’s history as an investment vehicle (as well as a natural resource commodity), prices traded in a narrower range than the rest of the precious metals sector, said a report by Standard Bank on Monday.
The report said that between the start of September and the beginning of October, gold gained about 7% in price, while silver and PGM (Platinum group metals) prices fell. A single snapshot does not tell the whole picture, however, and the market itself experienced a variety of phases as problems escalated in the financial system.
One tangible element was the development of vast fund flows into the major Exchange Traded Funds as investors looked to reduce counterparty risk, it said.
Gem and Jewellery park in Chhattisgarh
The Indian state, Chhattisgarh plans to invest $37mn to set up a gems and jewellery park at its upcoming satellite city Naya Raipur, said state Industry Minister Rajesh Munat.
The park at Naya Raipur whose foundation stone was laid on Saturday will be India’s one of the major gems and jewellery parks.
The park will spread across 28.32 hectares of land and will house latest diamond cutting and polishing technologies. The park is likely to generate direct and indirect jobs for about 25,000 people. The project is expected to be ready by 2011 and will be maintained by Chattisgarh State Industrial Development Corporation.
Naya Raipur will replace Raipur as the state’s capital by 2011. The new city that will be sprawl across an area of about 20,000 acres will be equipped with state-of-the art physical, social and economic infrastructure.
Markets still shaky: Standard Bank
US legislators passed the much disputed $700bn rescue bill late on Friday but markets are not convinced of its ability to revive gridlocked credit markets, said a report by Standard Bank.
While US inter- bank lending rates have declined, they’re still extremely high, it said. Despite authorities’ efforts, banks remain suspicious of counterparties’ ability to honour financial obligations.
Scepticism around the rescue plan is also being demonstrated by Asian equities having fallen sharply this morning, the report said. The Nikkei was down more than 4%, followed by the Hang Seng at 3.5%. US equity futures have lost more than 1.5%, possibly signalling another red day in US equity markets.
Global fears continue to translate into high demand for US Treasuries at the expense of other assets. The main beneficiary have been the USD which has gained ground from $1.3850 to as low as $1.3605 against the euro.
“We expect this trend to continue if the Europe and the US track Asian markets later today,” said Standard Bank’s commodity analyst Walter De Wet.
On the data front, Friday’s US non-farm payrolls, which declined by 159,000 which was much more than the estimated forecast decline of 100,000 adds to the list of negative data.
“Faced with a stronger dollar, PGM and silver will see little support. We estimate the average PGM basket price currently at $847/oz. While the market is currently more concerned about demand, persistent low prices would put many mines in financial difficulty,” said Walter.
Walter also mentioned that the yellow metal is still dithering and with investors unwilling to commit to major positions on Friday, gold traded erratically at $845/oz-$825/oz.
After finding some support early in Asia, which pushed gold from $830/oz to $845/oz, gold lost its direction as the dollar drifted around $1.383. A series of sharp spikes followed when US markets opened, but gold remained stuck at $825/oz-$845/oz. It closed at $828.5/oz on Friday, and held up well in the aftermarket after the rescue plan was passed, reflecting the lingering concerns in financial markets, said the report.
“Primary support is at $821/oz, and secondary support at $807/oz and $803/oz. Resistance is at $848/oz, $861/oz, and $888/oz,” said Walter.
The report mentioned that silver initially found solid support in Asia as it gained $0.65, to trade at $11.40/oz, before it stabilized in Europe. Renewed buying support in New York saw the metal shoot to $11.70/oz, just to subside again when gold lost steam. Silver ended the week at a bid of $11.25/oz.
“Primary support is at $11.00/oz and secondary support at $10.88/oz-$10.70/oz. Primary resistance is at $11.65/oz, and secondary at $12.00/oz,’ said Walter.
Platinum remains under pressure; on Friday, trade was choppy. The metal failed to break above $1,000/oz, bouncing between $950/oz and $980/oz. With the stronger dollar, platinum could remain under pressure today. It closed at $955/oz on Friday.
Palladium is holding up well despite platinum’s move lower. Although the metal dropped to $195/oz on Friday, it managed to claw its way back in New York and closed at $198/oz. Rhodium lost $60/oz, to fix at $3,210/oz in New York, it said.
While US inter- bank lending rates have declined, they’re still extremely high, it said. Despite authorities’ efforts, banks remain suspicious of counterparties’ ability to honour financial obligations.
Scepticism around the rescue plan is also being demonstrated by Asian equities having fallen sharply this morning, the report said. The Nikkei was down more than 4%, followed by the Hang Seng at 3.5%. US equity futures have lost more than 1.5%, possibly signalling another red day in US equity markets.
Global fears continue to translate into high demand for US Treasuries at the expense of other assets. The main beneficiary have been the USD which has gained ground from $1.3850 to as low as $1.3605 against the euro.
“We expect this trend to continue if the Europe and the US track Asian markets later today,” said Standard Bank’s commodity analyst Walter De Wet.
On the data front, Friday’s US non-farm payrolls, which declined by 159,000 which was much more than the estimated forecast decline of 100,000 adds to the list of negative data.
“Faced with a stronger dollar, PGM and silver will see little support. We estimate the average PGM basket price currently at $847/oz. While the market is currently more concerned about demand, persistent low prices would put many mines in financial difficulty,” said Walter.
Walter also mentioned that the yellow metal is still dithering and with investors unwilling to commit to major positions on Friday, gold traded erratically at $845/oz-$825/oz.
After finding some support early in Asia, which pushed gold from $830/oz to $845/oz, gold lost its direction as the dollar drifted around $1.383. A series of sharp spikes followed when US markets opened, but gold remained stuck at $825/oz-$845/oz. It closed at $828.5/oz on Friday, and held up well in the aftermarket after the rescue plan was passed, reflecting the lingering concerns in financial markets, said the report.
“Primary support is at $821/oz, and secondary support at $807/oz and $803/oz. Resistance is at $848/oz, $861/oz, and $888/oz,” said Walter.
The report mentioned that silver initially found solid support in Asia as it gained $0.65, to trade at $11.40/oz, before it stabilized in Europe. Renewed buying support in New York saw the metal shoot to $11.70/oz, just to subside again when gold lost steam. Silver ended the week at a bid of $11.25/oz.
“Primary support is at $11.00/oz and secondary support at $10.88/oz-$10.70/oz. Primary resistance is at $11.65/oz, and secondary at $12.00/oz,’ said Walter.
Platinum remains under pressure; on Friday, trade was choppy. The metal failed to break above $1,000/oz, bouncing between $950/oz and $980/oz. With the stronger dollar, platinum could remain under pressure today. It closed at $955/oz on Friday.
Palladium is holding up well despite platinum’s move lower. Although the metal dropped to $195/oz on Friday, it managed to claw its way back in New York and closed at $198/oz. Rhodium lost $60/oz, to fix at $3,210/oz in New York, it said.
Saturday, October 4, 2008
Vasant Mehta is the new chairman of GJEPC
Vasant Mehta has been elected as the new Chairman of Gem and Jewellery Export Promotion Council (GJEPC) while Rajeev Jain has been appointed as the Vice Chairman. The 42nd Annual General Meeting (AGM) of the GJEPC took place on 30th September 2008 in Mumbai.
Mehta will take on the responsibilities from the ex-chairman of GJEPC, Sanjay Kothari, who has completed his two-year term from 2006 to 2008. Jain, who was Chairman, Jaipur region, GJEPC will be succeeding the post of Vice-Chairman of the Council.
"It is a position of great honour and immense responsibility. I have series of tasks to accomplish in times to come and I look forward to the similar support and cooperation extended to the past Chairman to take the industry to newer heights,” said Vasant Mehta.
The newly elected chairman and vice chairman will hold office for a period of two years from 2008 to 2010.
“I am thankful to the Committee, members; media and Council for providing immense support all throughout which lead the industry achieve great heights. Multiple new projects are in pipeline and I along with the committee and team are ready to provide the same support to the new Chairman which will help continue the growth,” said the Ex Chairman of GJEPC, Sanjay A. Kothari.
Mehta is founder and senior partner of M/S. V. Rameshchandra & Co., Mumbai. After graduating from Calcutta University, Vasant Mehta migrated to Mumbai and joined the newly developing diamond cutting industry in 1966.
He joined GJEPC in the year 1969 as an honorary member and consequently held several important positions including that of Vice Chairman of the Council. Recently, he was re-elected as Vice Chairman, to serve until year 2008. He has also been a convener of the Banking Insurance and Taxation Committee for over 10 years. He has served as a member of the committee of the Bharat Diamond Bourse and has been an Advisor to their Legal Committee. He is currently the VP of the International Diamond Manufacturers Association (IDMA) and is also a special advisor to China Diamond Industry.
Jain is the Promoter and Director of Vaibhav Gems Ltd, the first ever Public Ltd Company in the Jewellery sector from Jaipur. Presently he is also shouldering responsibilities as Chairman of Sambhav Gems Ltd. Jain has served GJEPC earlier at various positions, including having been the Convener, Colour Gemstone Panel. He has also been the Ex - Chairman of the CII, Rajasthan Sector, Director of International Colour Gemstone Association (ICA), Honorary Secretary of Jaipur Jewellery Show & as the Ex-Vice President of Jewellers’ Association of Jaipur.
The Gem & Jewellery Export Promotion Council is an all India apex body representing 6000 Gem & Jewellery traders from India. Set up in 1966, it operates under the supervision of the Ministry of Commerce and Industry, Government of India and elected representatives of the industry. The Council is a non-profit organization involved with service to the nation.
Mehta will take on the responsibilities from the ex-chairman of GJEPC, Sanjay Kothari, who has completed his two-year term from 2006 to 2008. Jain, who was Chairman, Jaipur region, GJEPC will be succeeding the post of Vice-Chairman of the Council.
"It is a position of great honour and immense responsibility. I have series of tasks to accomplish in times to come and I look forward to the similar support and cooperation extended to the past Chairman to take the industry to newer heights,” said Vasant Mehta.
The newly elected chairman and vice chairman will hold office for a period of two years from 2008 to 2010.
“I am thankful to the Committee, members; media and Council for providing immense support all throughout which lead the industry achieve great heights. Multiple new projects are in pipeline and I along with the committee and team are ready to provide the same support to the new Chairman which will help continue the growth,” said the Ex Chairman of GJEPC, Sanjay A. Kothari.
Mehta is founder and senior partner of M/S. V. Rameshchandra & Co., Mumbai. After graduating from Calcutta University, Vasant Mehta migrated to Mumbai and joined the newly developing diamond cutting industry in 1966.
He joined GJEPC in the year 1969 as an honorary member and consequently held several important positions including that of Vice Chairman of the Council. Recently, he was re-elected as Vice Chairman, to serve until year 2008. He has also been a convener of the Banking Insurance and Taxation Committee for over 10 years. He has served as a member of the committee of the Bharat Diamond Bourse and has been an Advisor to their Legal Committee. He is currently the VP of the International Diamond Manufacturers Association (IDMA) and is also a special advisor to China Diamond Industry.
Jain is the Promoter and Director of Vaibhav Gems Ltd, the first ever Public Ltd Company in the Jewellery sector from Jaipur. Presently he is also shouldering responsibilities as Chairman of Sambhav Gems Ltd. Jain has served GJEPC earlier at various positions, including having been the Convener, Colour Gemstone Panel. He has also been the Ex - Chairman of the CII, Rajasthan Sector, Director of International Colour Gemstone Association (ICA), Honorary Secretary of Jaipur Jewellery Show & as the Ex-Vice President of Jewellers’ Association of Jaipur.
The Gem & Jewellery Export Promotion Council is an all India apex body representing 6000 Gem & Jewellery traders from India. Set up in 1966, it operates under the supervision of the Ministry of Commerce and Industry, Government of India and elected representatives of the industry. The Council is a non-profit organization involved with service to the nation.
Friday, October 3, 2008
Commodity prices weaken due to global slowdown fears
Fears of slower international economic growth coupled with a sharp appreciation of the USD against the EUR combined to drag commodity prices (USD terms) lower, said a report by Commonwealth Bank of Australia on Friday.
It also mentioned that the recent US economic data has been soft, with data released earlier this week showing that the US ISM manufacturing index declined in September, while US auto sales had been weak in September.
Moreover, commodity markets are increasingly concerned that the post-Olympics bounce in Chinese economic activity has been tepid.
The oil price fell back in response to the firmer USD and worries about the implications of weaker international economic growth for oil demand. NYMEX light sweet crude (November contract) touched $94/barrel. The gold price (spot) also slipped sharply, with selling related to the firmer USD and lower oil prices outweighing safe-haven related demand, it said.
“Markets are nervous, erratic and unpredictable, and investors are risk-averse. And so, commodities sold off relentlessly, driving prices down. Precious metals were hard hit, with silver taking the brunt, sacrificing 12.85%. Platinum lost 5.5%, palladium 4.3%, and gold 4.5%,” said a Standard Bank analyst Walter de Wet in a report.
Although platinum came under early selling pressure due to worse-than-expected US auto sales, precious metals were initially stable, the Standard Bank report said. However, the decision by the ECB not to cut interest rates, combined with a bearish statement on the Eurozone, triggered broad asset liquidation. The dollar then appreciated rapidly against most currencies. It went from $1.39 to a low of $1.3748 against the euro. As of now, it remains well below $1.39, it said.
“We foresee more disorder for markets. If the US House of Representatives passes the financial rescue package tonight, it would bring some relief, but not enough to restore confidence. Credit markets still have too much asymmetric information, which is inhibiting risk appetite. Against the backdrop of the slowdown in real economic activity globally, commodities will stay under pressure. These conditions would favour the US dollar and, because of little liquidity, gold could battle to rise much higher despite credit risk being high,” Walter said.
Analysts and traders are keeping an eye on the US non-farm payrolls due for release tonight. Markets expect a decline of 105K jobs. Anything more could see more money flee from commodities, the report said.
The Standard Bank report also mentioned that the yellow metal stayed on the back foot. Although it traded steadily lower in Asia and Europe, the weak euro dragged it down from around $870/oz to $865/oz. The major sell-off started just before the PM fix, and gold plunged to $830/oz as the US dollar strengthened. It closed at $842.50/oz. Primary support for gold is at $830/oz, and secondary at $820/oz and $803/oz. Resistance is at $864/oz, $892/oz, and $900/oz.
Morning trade was orderly, with the silver metal tracking gold, but the sell-off after gold's drop was merciless and Silver took a beating. Just before New York opened, silver slid to $11.80/oz. After failing to settle, it shed another 50c in US trade, closing at $11.05/oz. Primary support is at $11/oz and secondary at $10.30/oz-$10.25/oz. Primary resistance is at $12/oz, and secondary at $12.18/oz.
While Platinum sentiment remains negative the bearish economic data, scarce liquidity and the strong dollar are intimidating it. Platinum dropped early in Europe, from $1,040/oz to $980/oz. It then spent the day bouncing, and closed at $973/oz.
Palladium was pushed down all the way from $213/oz in Asia to $203/oz in Europe to $200/oz in the US, and closed at $199/oz. $200/oz is providing some support. Meanwhile Rhodium dropped more than $500/oz on Thursday, to $3,270/oz in New York.
It also mentioned that the recent US economic data has been soft, with data released earlier this week showing that the US ISM manufacturing index declined in September, while US auto sales had been weak in September.
Moreover, commodity markets are increasingly concerned that the post-Olympics bounce in Chinese economic activity has been tepid.
The oil price fell back in response to the firmer USD and worries about the implications of weaker international economic growth for oil demand. NYMEX light sweet crude (November contract) touched $94/barrel. The gold price (spot) also slipped sharply, with selling related to the firmer USD and lower oil prices outweighing safe-haven related demand, it said.
“Markets are nervous, erratic and unpredictable, and investors are risk-averse. And so, commodities sold off relentlessly, driving prices down. Precious metals were hard hit, with silver taking the brunt, sacrificing 12.85%. Platinum lost 5.5%, palladium 4.3%, and gold 4.5%,” said a Standard Bank analyst Walter de Wet in a report.
Although platinum came under early selling pressure due to worse-than-expected US auto sales, precious metals were initially stable, the Standard Bank report said. However, the decision by the ECB not to cut interest rates, combined with a bearish statement on the Eurozone, triggered broad asset liquidation. The dollar then appreciated rapidly against most currencies. It went from $1.39 to a low of $1.3748 against the euro. As of now, it remains well below $1.39, it said.
“We foresee more disorder for markets. If the US House of Representatives passes the financial rescue package tonight, it would bring some relief, but not enough to restore confidence. Credit markets still have too much asymmetric information, which is inhibiting risk appetite. Against the backdrop of the slowdown in real economic activity globally, commodities will stay under pressure. These conditions would favour the US dollar and, because of little liquidity, gold could battle to rise much higher despite credit risk being high,” Walter said.
Analysts and traders are keeping an eye on the US non-farm payrolls due for release tonight. Markets expect a decline of 105K jobs. Anything more could see more money flee from commodities, the report said.
The Standard Bank report also mentioned that the yellow metal stayed on the back foot. Although it traded steadily lower in Asia and Europe, the weak euro dragged it down from around $870/oz to $865/oz. The major sell-off started just before the PM fix, and gold plunged to $830/oz as the US dollar strengthened. It closed at $842.50/oz. Primary support for gold is at $830/oz, and secondary at $820/oz and $803/oz. Resistance is at $864/oz, $892/oz, and $900/oz.
Morning trade was orderly, with the silver metal tracking gold, but the sell-off after gold's drop was merciless and Silver took a beating. Just before New York opened, silver slid to $11.80/oz. After failing to settle, it shed another 50c in US trade, closing at $11.05/oz. Primary support is at $11/oz and secondary at $10.30/oz-$10.25/oz. Primary resistance is at $12/oz, and secondary at $12.18/oz.
While Platinum sentiment remains negative the bearish economic data, scarce liquidity and the strong dollar are intimidating it. Platinum dropped early in Europe, from $1,040/oz to $980/oz. It then spent the day bouncing, and closed at $973/oz.
Palladium was pushed down all the way from $213/oz in Asia to $203/oz in Europe to $200/oz in the US, and closed at $199/oz. $200/oz is providing some support. Meanwhile Rhodium dropped more than $500/oz on Thursday, to $3,270/oz in New York.
Thursday, October 2, 2008
Titan launches Raga Diva
Titan launched Raga Diva on 30 September, 2008, in Mumbai. The new women's watch collection which are inspired by traditional kundan work was launched by bollywood actress Soha Ali Khan. “The new collection of watches express the desire of every woman today to express the Diva inside her.
The flamboyant designs of these watches make them the perfect accessory to be worn during the festival season when women dress up in their preeminent way and want to feel their feminine best,” said Ajoy Chawala, VP of Titan.
The new watch collection features 24 models of which seven are of distinct styles and range between Rs4,000-Rs10,000. The collection will be available at World of Titan showrooms and multi brand outlets across the country.
"Road Side Romeo" collection launched by Popley's Disney Fine Jewellery
The Popley's Disney Fine Jewellery division has launched a new range of diamond jewellery called "Road Side Romeo" collection.With the animated movie, this collection will mark The Walt Disney the company's first Indian collaboration. RoadsideRomeo, which is the animated movie will feature Saif Ali Khan and Kareena Kapoor's voice over.
Popley & sons have designed the pendants to displays the love betweenthe two characters
'Romeo' and 'Laila' in the movie. The desgined pendant is a Unisex piece of jewellery with the oval shape getting converted into a heart shape. The oval pendant has the image of Romeo while the heart shape is accompanied by Laila.
The pendant is studded with brilliant cut diamonds in 18 karat gold and is limited to only eight pieces worldwide. The collection will be available only at Popley & Sons stores.
'Romeo' and 'Laila' in the movie. The desgined pendant is a Unisex piece of jewellery with the oval shape getting converted into a heart shape. The oval pendant has the image of Romeo while the heart shape is accompanied by Laila.The pendant is studded with brilliant cut diamonds in 18 karat gold and is limited to only eight pieces worldwide. The collection will be available only at Popley & Sons stores.
Bear trend prevails for Palladium:Standard Bank
The short-term bear trend prevails for the precious metal Palladium said an Australia based, Standard Bank report on Wednesday. The market continues recording lower lows and lower corrective highs and, with this in mind, a bearish view is expressed below $256, said the report.
Palladium is likely to encounter support at $190, prompting a minor recovery. Once a break below $190 occurs, the Standard Bank analysts expect the trend to recommence to $166-fulfilling extended objectives off the $590 high.
The report also mentioned that the technical indicators have already entered the oversold territory, but continued weakness through $166 exposes the market towards $140.
Palladium is likely to encounter support at $190, prompting a minor recovery. Once a break below $190 occurs, the Standard Bank analysts expect the trend to recommence to $166-fulfilling extended objectives off the $590 high.
The report also mentioned that the technical indicators have already entered the oversold territory, but continued weakness through $166 exposes the market towards $140.
"We are not forecasting a break below $140, and therefore expect palladium to establish a support base between $166 and $140, and enter a period of sustained corrective strength. In the event of a break below $140, the next support point is situated at $114-the 1996 low. Resistance between $302 to $305 is regarded as a pivotal area," said the Standard Bank report.
A break higher will indicate a near-term trend reversal, turning the outlook positive, the report said.
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