http://www.tfmetalsreport.com/blog/3940/lookout
http://www.silverdoctors.com/is-latest-silver-smash-a-result-of-cio-losses-forcing-jp-morgan-to-unwind-silver-positions/
Is the latest smash in silver Blythe and Jamie’s desperate attempt to extricate themselves from JPM’s naked short silver positions in order to avoid a 2nd humiliating PR SNAFU for the firm which would likely result in Dimon getting the proverbial axe???
The total silver comex OI completely shook the living daylights out of the bankers on Friday. They were expecting a drop in OI as the price of silver fell in excess of $1.55 yesterday. Much to their shock, the total OI rose by 6034 contracts from 121,949 to 127,983. I believe that this is the highest gain in OI that I can ever remember. The non official delivery month of June saw its OI remain the same at 12 contracts. Because we had 0 delivery notices on Thursday we neither gained nor lost any silver. The next piece of data, no doubt, is also grave concern to our bankers. The front delivery month of July is only 4 days away and instead of contracting in OI as is the norm, it ROSE by 147 contracts from 33,908 to 34,055. The midnight oil will be burning at the Hotel du Bankers, New York this weekend.
The estimated volume Friday was quite large at 64,665. However the confirmed volume on Thursday was an absolutely astounding 98,432 with few switches. With the price falling on Thursday and the OI rising, our bankers are cleaning up from themselves either from gastric regurgitation, bowel release, or excessive self hair pulling. They simply cannot understand how total OI rose, the front month of July OI rose, confirmed volume rose and their efforts to knock off any silver leaves went in vain.
On The Lookout
I have a little time this fine Saturday morning so I thought I would share some observations with you.
First of all, we have to talk about the open interest changes on Thursday. You remember Thursday, don't you? The day of the big beatdown? As an aside, how many times has this now happened in 2012 alone? Anytime The Bernank steps in front of a mic, the metals get crushed. What was last week...about the 7th time this has happened this year alone? At any rate, from the Comex close of Wednesday to the Comex close of Thursday, gold was down $50.30 and silver was down $1.55. As Ruprecht would say: "That's a lot". Let's keep in mind a couple of things here:
- Price declines when there are more sellers than buyers.
- There are two kinds of selling pressure. Long liquidation and naked short selling.
- When longs liquidate, they are closing an open position. This causes total open interest to decline.
- When naked shorts are added, this is opening a new position. This causes total open interest to rise.
- If you are to believe The Cartel Apologists and Disinformation Agents, then The Bullion Banks are simply benevolent market makers who add liquidity to the metals markets by taking the other side of these trades. They are the willing providers of paper metal when buyers initiate new longs AND they are the buyers on the other side of new, spec naked shorts.
- (This is, of course, true and the CoT and Bank Participation Reports bear this out. The problem with The Apologists is that they stop right there and fail to consider/comprehend that The Bullion Banking Cartel may have more nefarious aims as they serve their Fed/ECB/BoE/BoJ/SNB masters.)
- Since late February, The Cartels have been rapidly reducing their net short exposure in both gold and silver. For gold, The Cartel net short position has fallen from a ratio of 2.69:1 to a current (a/o last Tuesday) ratio of 2.08:1. That's a drop of 36%. In silver, the reduction is even more dramatic. On 2/24/12, The Cartel net short ratio was 2.32:1. As of last Tuesday, it now stands at 1.36:1. That's a drop of 73%.
So now, with these points in mind, let's assess the open interest changes from Thursday. For gold, while price was falling over $50, the total open interest change from Wednesday to Thursday was just 34 contracts. From this, what can we surmise? Clearly there were equal parts long liquidation and new shorting on Thursday. All of that selling pressure drove price down $50. The overall Cartel position was likely flat and the entire shift was within the "Large Spec" category where spec longs were dumped and spec shorts were added.The $1.55 decline silver, on the other hand, was an entirely different event. While silver was falling, the total open interest grew by over 6,000 contracts and, at 127983, it stands at the highest level for all of 2012 and it's a level we haven't seen since last May! More on the implications of this in a minute but, first, what does this OI rise indicate?Again, as pointed out above, a rising OI coupled with a falling price is an indicator of naked short selling. Having price fall 5% and OI rise 5% shows that the entire event was caused by new spec short selling, not long liquidation. How can I assume that it is the specs that are adding shorts and NOT The Silver Cartel? Re-read point #7 above. If this is the case, then Thursday put a significant dent in the remaining Cartel net short position.As of last Tuesday, The Silver Cartel net short position was 16,954 contracts. They were short 64,401 and long 47,447. The difference is 16,954. (As an aside, per the latest Bank Participation Report, JPM was short 17,000 all by themselves. This means the rest of The Silver Cartel is already net flat.) So...IF Thursday's selloff was almost entirely caused by naked short selling and IF that short selling was coming almost entirely from the specs...the current net short position of The Silver Cartel may be as low as 11,000 contracts. Additionally, the balance MAY be JPM net short 16,000 and everyone else net long 5,000. Think about the implications of that for a moment.Regardless, today the net short ratio of The Evil Empire in silver is at an historically low level. I have maintained for over a year now that the run-up in April of 2011 and the ensuing beatdown in the 14 months since has been a coordinated effort by The Silver Cartel to extricate themselves from their tenuous and extreme net short position. In late March of 2011, they were net short 55,000 contracts. Today, they are net short as few as 11,000 contracts. That's an 80% reduction and they are almost there, almost flat. The question of the day, and the ultimate subject of this post, becomes: WHAT HAPPENS NEXT?- Can silver reverse and rally while JPM battles the rest of The Cartel?
- Must silver decline further in order for The Cartel to move to net flat?
- Can silver decline further in the face of tight supply and strong physical demand?
I wish I had the answers but, obviously, I don't. I'm left to speculate and guess just like you are. One thing I do know, however, is this: Silver will reverse and it will then head much, much higher. For traders, the timing of this reversal is extremely important. For stackers, not so much. Any further dips in price should be greeted with joy as the opportunity to buy silver at these fiat price levels will not last much longer.However, I recognize that even stackers watch the day-to-day price changes with great interest. With that in mind, take a good, long look at these charts of silver:
Look, I can assure you that silver is in very tight supply and it is increasingly difficult for Buyers of Size to get timely, price-efficient delivery. This condition of the physical market will make it very difficult for silver to break down through $26. Difficult, yes, but not impossible. On a very short-term Look, I can assure you that silver is in very tight supply and it is increasingly difficult for Buyers of Size to get timely, price-efficient delivery. This condition of the physical market will make it very difficult for silver to break down through $26. Difficult, yes, but not impossible. On a very short-term basis, it's certainly possible for silver to be run through $26. There has to be a considerable amount of buy-stops under that level. "Harvesting" them alone could drop price below $25 and, after that, selling momentum could take price all the way to $22. Heck, maybe even $20.I tell you this not because I expect this to happen. I tell you this so that you are mentally prepared. IF this happens, it will mark the end of silver manipulation, as we've known it. A brief drop into the lower 20s would allow The Cartel to finally move to a net flat or even net long position. From there, silver will rapidly recover and soar to new, all-time highs. Of this, I am 100% certain. Therefore, IF silver suddenly falls another 20%, do not freak out and panic sell your metal. This would be the biggest financial mistake you'll ever make.Again, silver could and SHOULD hold the $26 floor simply because of the tight, physical marketplace. IF it doesn't, though, be prepared for the opportunity of a lifetime to buy silver at what will be an historic bottom. Price will not stay down for long, though, so you must be prepared to move quickly. Besides The Silver Cartel moving net neutral/long, there are several fundamental changes coming over the horizon for silver. Be strong and do not waver.In this context, we should discuss gold, too. Any set of conditions that would allow for a raid in silver would likely cause a raid in gold, as well. Do the charts bear this out? Maybe. Take a look. Like $26 silver, you can rightly assume that there is an abundance of stops below $1525 gold. This has to have The Gold Cartel salivating. Can they pull it off in the face of extraordinarily strong, global demand for physical gold? Yes, they can but again, though, they won't be able to keep it down there long.At it's last peak in August of 2011, note that gold broke out of it's primary channel and moved about$250 higher. Having broken down now and residing outside the channel, the risk remains that gold could fall $250 below the channel. This would take it to roughly $1400. Looking at the weekly chart, this would be a logical spot for support to appear, too. Again, I AM NOT SAYING that goldis going to fall to $1425. I am saying that it's a possibility and, if it does, this type of move would present to you an extraordinary and historic opportunity to BUY not sell. Just be mentally prepared, that's all.
* * * *
http://www.silverdoctors.com/is-latest-silver-smash-a-result-of-cio-losses-forcing-jp-morgan-to-unwind-silver-positions/
Is Latest Silver Smash a Result of CIO Losses Forcing JP Morgan to Unwind Silver Positions??
NASDAQ.com writer Martin Tillier has taken the JP Morgan silver manipulation story mainstream.
In a story published on NASDAQ.com Tillier writes that if rumors of JP Morgan’s manipulation of silver are true ‘and they likely are‘, The Morgue will be forced to unwind their naked silver positions in light of increased scrutiny as they cannot afford another story about excessive risk.
Tiller states that at the very least, JP Morgan will have to stop holding the market down.
Our friend TF from TFMetalsReport estimates that after Thursday’s raid, JP Morgan’s naked silver position (which as of Tuesday’s COT cutoff was approximately 17,000 contracts) could likely have been reduced to around 11,000 contracts.
Is the latest smash in silver Blythe and Jamie’s desperate attempt to extricate themselves from JPM’s naked short silver positions in order to avoid a 2nd humiliating PR SNAFU for the firm which would likely result in Dimon getting the proverbial axe???
JP Morgan: Every Cloud Has a Silver Lining
By Martin Tillier, NASDAQ.com
Jamie Dimon, the CEO of JP Morgan Chase was recently called to testify on Capitol Hill regarding a declared $2 Billion loss on a “hedge” placed by a trader in London. Congress’s favorite Wall Street banker was given an easy ride by the Senators, but details of the loss tarnished the “squeaky clean” reputation of JP Morgan for many people. This is something potential silver investors should take note of.
There have long been rumors in the market that JP Morgan had a huge short position in silver. Many people believed that they were doing everything in their power to keep the price down to protect their position. Simply Google “JP Morgan + silver” for thousands of results. Those who denied this persistent rumor pointed to the reputation of the firm as more conservative and better behaved than the other Wall Street banks. We all know how that has played out.
Whether the rumors are true or not, and they likely are, JP Morgan’s troubles will have a positive effect on the price of silver. If they are true, the firm, in the light of increased scrutiny, will have to begin to unwind their position. They cannot afford another story about excessive risk. At the very least, they will have to stop holding the market down. They benefit enormously from being Washington’s favorite, but politicians of all stripes will change favorites faster than a 5 year old in the playground if improper manipulation of the silver market is shown to have happened.
and.....
http://harveyorgan.blogspot.com/2012/06/marking-time-waiting-for-eu-summit-next.html
SATURDAY, JUNE 23, 2012
Marking time waiting for the Eu Summit next week
Good morning Ladies and Gentlemen:
Before commencing, I would like to report that we had no banking casualties last night as such no new entrants into our morgue.
Gold closed up today to the tune of $1.50 to $1666.00 by comex closing time. The price of silver however was a little more subdued falling by 18 cents to $26.65, Yesterday Europe bourses were in the red catching up to all of the poor PMI numbers (Purchasers Managers Indices) on manufacturing form Asia and Europe including Germany together with the poor Philly manufacturing index. All hopes will rest next week on the big EU summit where it is hoped that a deal will be struck on Euro bonds and the implementation of the ESM which still needs to be ratified. It is hoped that the ESM will allow direct purchases of bank indebtedness. All of these events have no chance of happening as Germany is steadfast and only existing agreed upon facilities will be used. Greece has 2 billion euros left in the kitty and most of that will be used to pay federal workers at month's end. They still have 1 billion euros coming but 90% of that money goes back to the ESM. Greece will keep only 100 million euros of that. It looks like the first week of July, Greece will be out of funds. We will go over all of these events but first, let us head over to the comex and assess trading today. You will see some major surprises.
Before commencing, I would like to report that we had no banking casualties last night as such no new entrants into our morgue.
Gold closed up today to the tune of $1.50 to $1666.00 by comex closing time. The price of silver however was a little more subdued falling by 18 cents to $26.65, Yesterday Europe bourses were in the red catching up to all of the poor PMI numbers (Purchasers Managers Indices) on manufacturing form Asia and Europe including Germany together with the poor Philly manufacturing index. All hopes will rest next week on the big EU summit where it is hoped that a deal will be struck on Euro bonds and the implementation of the ESM which still needs to be ratified. It is hoped that the ESM will allow direct purchases of bank indebtedness. All of these events have no chance of happening as Germany is steadfast and only existing agreed upon facilities will be used. Greece has 2 billion euros left in the kitty and most of that will be used to pay federal workers at month's end. They still have 1 billion euros coming but 90% of that money goes back to the ESM. Greece will keep only 100 million euros of that. It looks like the first week of July, Greece will be out of funds. We will go over all of these events but first, let us head over to the comex and assess trading today. You will see some major surprises.
The total gold comex OI fell by only 34 contracts despite the massive raid yesterday. The new OI rests this weekend at 415,699 compared to Thursday's reading of 415,733. Obviously the bankers failed to knock off any of our gold leaves from the gold tree. The front delivery month of June saw its OI fall by 44 contracts from 666 to 622. We had 42 delivery notices on Thursday so we lost 2 gold contracts or 200 oz. The next big delivery month is August and here the OI fell from 218,843 to 217,686. The estimated volume Friday was extremely light at 112,836 compared to Thursday, the day of the big raid, where the confirmed volume finished at 218,843. It seems that on the day of raids volumes appreciates considerably due to the non backed supply by the bankers. The buy side is gobbled up by unknown entities wishing to take on the bankers.
The total silver comex OI completely shook the living daylights out of the bankers on Friday. They were expecting a drop in OI as the price of silver fell in excess of $1.55 yesterday. Much to their shock, the total OI rose by 6034 contracts from 121,949 to 127,983. I believe that this is the highest gain in OI that I can ever remember. The non official delivery month of June saw its OI remain the same at 12 contracts. Because we had 0 delivery notices on Thursday we neither gained nor lost any silver. The next piece of data, no doubt, is also grave concern to our bankers. The front delivery month of July is only 4 days away and instead of contracting in OI as is the norm, it ROSE by 147 contracts from 33,908 to 34,055. The midnight oil will be burning at the Hotel du Bankers, New York this weekend.
The estimated volume Friday was quite large at 64,665. However the confirmed volume on Thursday was an absolutely astounding 98,432 with few switches. With the price falling on Thursday and the OI rising, our bankers are cleaning up from themselves either from gastric regurgitation, bowel release, or excessive self hair pulling. They simply cannot understand how total OI rose, the front month of July OI rose, confirmed volume rose and their efforts to knock off any silver leaves went in vain.
and articles / commentary of note.....
It the following commentary, Turk asks for a proper accounting of gold reserves by the 17 nations
in order to restore confidence in the Euro
(courtesy James Turk of Goldmoney.com)
in order to restore confidence in the Euro
(courtesy James Turk of Goldmoney.com)
James Turk: Wooing the Germans
Submitted by cpowell on Sat, 2012-06-23 03:47. Section: Daily Dispatches
11:45a HKT Saturday, June 23, 2012
Dear Friend of GATA and Gold:
GoldMoney founder James Turk, longtime consultant to GATA, argues that a precise and reliable public accounting of euro-zone gold reserves might do much to restore confidence in the regional currency. Of course, if such an accounting might reveal that euro-zone gold reserves are leased, double- or triple-counted and hypotheticated to infinity, vaulted outside the euro-zone itself, and recoverable only at the cost of terrible international political problems, Europe still will have a long coastline and pretty seashells always can be pressed into service. Turk's commentary is headlined "Wooing the Germans" and it's posted at the GoldMoney Research page here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
I think you will enjoy with video with the Secretary Treasurer of GATA, Chris Powell with Bernie Lo
of CNBC
(Chris Powell/GATA/CNBC Asia)
of CNBC
(Chris Powell/GATA/CNBC Asia)
CNBC Asia posts video of interview with GATA secretary
Submitted by cpowell on Fri, 2012-06-22 05:25. Section: Daily Dispatches
Many Indian investors are making a beeline for silver, and are refraining from buying gold due to its high price, though gold is expected to give a 20% return in 2012.
Author: Shivom Seth
Posted: Friday , 22 Jun 2012
MUMBAI (MINEWEB) -
With gold prices too hot for many in India, silver has regained its sheen. Sales of silver coins are soaring in India, with most consumers buying silver coins which herald good luck and prosperity. Gold, on the other hand, has hit several highs in the last couple of days, deterring buyers from the precious metal.
Delayed monsoons in India have all but grounded sale of gold too. In rural India, sales of the yellow metal are closely linked to monsoon, since good rains that bring on a rich harvest will boost gold purchases by farmers.
So far, in June, rain deficit has already reached 41%. Rural India still accounts for 60% to 70% of gold sales in the country and if the monsoon is below normal this year, gold purchases will struggle to cross the 600 tonne mark this year, say bullion dealers.
The high price of gold, however, has many investors betting on silver. ``People's appetite for investing in the white metal has sky-rocketed lately, with most consumers coming in and picking up silver coins in double digits,' said Sonamull Shah, bullion trader.
Small-sized silver bars and coins are dominating most retail counters now, with consumers choosing the cheaper white metal in hopes of future price gains. Demand from industries and domestic coin makers is also keeping spot prices firm.
India is the largest importer as well as consumer of silver, with the average domestic consumption of the metal around 3,600 tonne per annum.
In Mumbai, the commercial capital of the country, spot silver prices had hit a low of $909.67 (Rs 52,100) on May 17 this year, but had hit a high of $989.61 (Rs 56,680) per kilo on June 5, 2012. On Friday, silver was quoting at $944.33 (Rs 54,055) per kilo.
Analysts are of the opinion that the return from silver this year is expected to be around 6% as compared to a negative return last year. Gold is set to do better. Gold is expected to give a 20% return in 2012, as against a 10% return of the previous year, say analysts.
According to a report of the Indian government's Working Group on Mineral Exploration and Development, ``Indian import of silver for 2012 is expected to decline to a range of 3,500 tonnes to 4,000 tonnes owing to a weak rupee and high import duty as compared to 4,800 tonnes imported last year'.
A weak rupee is creating chaos in the futures market. At the Multi Commodity Exchange, silver for delivery in July was down at $923.66 (Rs 52850) a kilo. Prices for September 5 delivery were also lower at $946.68 (Rs 54,150) per kilo, while those for December 5 delivery, were down at $974.17 (Rs 55,680).
On June 21, silver futures prices fell 1.04%, to $942.67 (Rs 54,003) per kilo as speculators booked profits amid a weak trend overseas. Analysts said the weak trend continued after Federal Reserve extended stimulus measures for six months to boost the flagging economy, but this put pressure on the silver futures prices here.
From end-2006 to date, silver has jumped by 165%, rallying from $349.68 (Rs 20,000) to $926.65 (Rs 53,000). Silver prices had hit a high of around $1,276.60 (Rs 73,000) per kilo in April 2011, but later witnessed a sharp correction.
PRECIOUS GOLD
Monsoons ensure a good harvest, that contributes to more than half of India's gold demand.
The June to September rains are crucial for India with 60% of its arable land dependent on them. Rains in the country impact demand for gold. Rural purchases rise in tandem with a rise in farming incomes, as a result of high crop output.
Though India's annual monsoon rains had covered almost half of the country at the start of June, there has been a palpable slowdown, with no signs of a pick-up this week with a forecast of bright, sunny days. The delayed monsoons have brought to the fore several concerns about the planting of crops.
About 72% of India's billion-plus people live in rural areas. The country's rural destiny still depends on good monsoon rains and robust agricultural production. In 2009, poor monsoons led to the worst drought in nearly four decades, and India had to import foodstuffs, raising global prices to record highs.
However, four years of bumper crops and heavy government investment in rural infrastructure have given birth to what some analysts call an `emerging economy' within India.
This year, with the entire country waiting for the monsoon season to take off, analysts are talking about another dark cloud that may not bear rain. High import duties and high domestic prices have severely pulled down demand for the yellow metal.
Imports too have crashed. India's gold and silver imports have fallen 52% in May.
April too witnessed a decline, with gold and silver down by 33% to $3.1 billion.
Imports of the yellow metal had already shrunk to 95 tonnes in the January to March 2012 period, against 283 tonnes in the same period last year. Gold prices zoomed to fresh highs on Tuesday (June 19) of $548.36 (Rs 30,750) per 10 gram, though it slipped by Rs 150 the next day, but was still high at 545.89 (Rs 30,600) for ten grams. Analysts are of the opinion that rural demand for the precious metal could be restrained this year.
http://www.mineweb.com/mineweb/view/minew
eb/en/page31?oid=153795&sn=Detail&pid=31
1:20p HKT Friday, June 22, 2012
Dear Friend of GATA and Gold:
Your secretary/treasurer was interviewed for five minutes this morning on CNBC Asia in Hong Kong by news anchor Bernie Lo. Video of the interview has been posted at the CNBC Asia archive here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
and.....
Silver coins hot up in India as gold sales weaken
Many Indian investors are making a beeline for silver, and are refraining from buying gold due to its high price, though gold is expected to give a 20% return in 2012.
Author: Shivom Seth
Posted: Friday , 22 Jun 2012
MUMBAI (MINEWEB) -
With gold prices too hot for many in India, silver has regained its sheen. Sales of silver coins are soaring in India, with most consumers buying silver coins which herald good luck and prosperity. Gold, on the other hand, has hit several highs in the last couple of days, deterring buyers from the precious metal.
Delayed monsoons in India have all but grounded sale of gold too. In rural India, sales of the yellow metal are closely linked to monsoon, since good rains that bring on a rich harvest will boost gold purchases by farmers.
So far, in June, rain deficit has already reached 41%. Rural India still accounts for 60% to 70% of gold sales in the country and if the monsoon is below normal this year, gold purchases will struggle to cross the 600 tonne mark this year, say bullion dealers.
The high price of gold, however, has many investors betting on silver. ``People's appetite for investing in the white metal has sky-rocketed lately, with most consumers coming in and picking up silver coins in double digits,' said Sonamull Shah, bullion trader.
An official at Nakoda Bullion added, ``Coin sales are picking up here. Compared to the last two months, sales are showing good recovery, since all those who cannot afford gold are now buying silver.'
India is the largest importer as well as consumer of silver, with the average domestic consumption of the metal around 3,600 tonne per annum.
In Mumbai, the commercial capital of the country, spot silver prices had hit a low of $909.67 (Rs 52,100) on May 17 this year, but had hit a high of $989.61 (Rs 56,680) per kilo on June 5, 2012. On Friday, silver was quoting at $944.33 (Rs 54,055) per kilo.
Analysts are of the opinion that the return from silver this year is expected to be around 6% as compared to a negative return last year. Gold is set to do better. Gold is expected to give a 20% return in 2012, as against a 10% return of the previous year, say analysts.
According to a report of the Indian government's Working Group on Mineral Exploration and Development, ``Indian import of silver for 2012 is expected to decline to a range of 3,500 tonnes to 4,000 tonnes owing to a weak rupee and high import duty as compared to 4,800 tonnes imported last year'.
A weak rupee is creating chaos in the futures market. At the Multi Commodity Exchange, silver for delivery in July was down at $923.66 (Rs 52850) a kilo. Prices for September 5 delivery were also lower at $946.68 (Rs 54,150) per kilo, while those for December 5 delivery, were down at $974.17 (Rs 55,680).
On June 21, silver futures prices fell 1.04%, to $942.67 (Rs 54,003) per kilo as speculators booked profits amid a weak trend overseas. Analysts said the weak trend continued after Federal Reserve extended stimulus measures for six months to boost the flagging economy, but this put pressure on the silver futures prices here.
Despite this, investment demand is picking up in India. Analysts said silver coins had fetched a return of 25.8% since November 2010 in India, and 7% since January 3, 2011.
PRECIOUS GOLD
Monsoons ensure a good harvest, that contributes to more than half of India's gold demand.
The June to September rains are crucial for India with 60% of its arable land dependent on them. Rains in the country impact demand for gold. Rural purchases rise in tandem with a rise in farming incomes, as a result of high crop output.
Though India's annual monsoon rains had covered almost half of the country at the start of June, there has been a palpable slowdown, with no signs of a pick-up this week with a forecast of bright, sunny days. The delayed monsoons have brought to the fore several concerns about the planting of crops.
About 72% of India's billion-plus people live in rural areas. The country's rural destiny still depends on good monsoon rains and robust agricultural production. In 2009, poor monsoons led to the worst drought in nearly four decades, and India had to import foodstuffs, raising global prices to record highs.
However, four years of bumper crops and heavy government investment in rural infrastructure have given birth to what some analysts call an `emerging economy' within India.
This year, with the entire country waiting for the monsoon season to take off, analysts are talking about another dark cloud that may not bear rain. High import duties and high domestic prices have severely pulled down demand for the yellow metal.
India's demand for gold has reportedly fallen far more drastically than that of the world. In the first quarter of 2012, domestic demand for the yellow metal witnessed a 30% crash year on year, even as global demand for gold dwindled 11%.
April too witnessed a decline, with gold and silver down by 33% to $3.1 billion.
Imports of the yellow metal had already shrunk to 95 tonnes in the January to March 2012 period, against 283 tonnes in the same period last year. Gold prices zoomed to fresh highs on Tuesday (June 19) of $548.36 (Rs 30,750) per 10 gram, though it slipped by Rs 150 the next day, but was still high at 545.89 (Rs 30,600) for ten grams. Analysts are of the opinion that rural demand for the precious metal could be restrained this year.
http://www.mineweb.com/mineweb/view/minew
eb/en/page31?oid=153795&sn=Detail&pid=31
and....
Hello, I feel companies will go for other gift items as gold and silver prices remain firm,Good News for Appliance Makers.Great information about these coins.
ReplyDeleteManagerial Accounting