Wednesday, March 25, 2009
Gold prices may rebound on demand for an alternative to currencies
A recent Bloomberg survey says that gold prices may rebound on demand for an alternative to currencies. Gjepc.org spoke to some experts to find out what they feel about this and what will the situation be in the months to come.Bhargav Vaidya, industry expert and bullion consultant, says, "I can't say this so directly but indirectly, yes, there are possibilities that gold could react this way. But it will happen with countries that don't have confidence in their currency. Though it's for sure, it will not happen in a huge way and if there's a short in Euro, there will be a long in gold". He adds that though no one knows how the last year's depreciation could be termed, it's for sure that the dollar terms will not be breached. His thoughts are seconded by Debjyoti Chatterjee, an associate vice president with MAPE ADMISI Research in Mumbai. He says, "The current bull on gold prices is because of safe haven buying and in this recessional market, people are not sure of their currency. Thus, as an alternative investment, they are pouring money on futures". He is of the opinion that because of a decline in dollar, gold is gaining heavily and this volatility in the market was not evident before 2005. He adds, "There is always 50-60 dollar volatility in trading but that's not the case anymore. It's a traders market now and they decide on the prices. Whatever happens, there will be no breach in the gold prices. Currently, gold is around $900 an ounce which is pretty much close to $1000 an ounce and, for 2009, I would say that gold at $1200 an ounce is not at all superficial but very much practical". Adding further to this situation, Chatterjee says that even higher crude oil prices will support gold prices. "In the second quarter rally, by April, there will again be volatility in the market and the bullion market will be beneficial for gold. The physical gold demand has reduced by 2/3rd because of higher prices and compared to last year, the gold import in India has been merely 300-350 tonnes". He feels that the prices are not going to heal as India is just a "price taker and not maker". Since there is a mismatch in the demand and supply in physical gold, even the central bank is holding on to its reserves. "This is going to be very much supportive for gold prices which are going to be just higher and higher", concludes Chatterjee.
Thursday, March 19, 2009
Alrosa Aims To Become World's Leading Diamond Miner ---Presently accounts for 25% of global diamond output
En.rian.ru reports that Russia's largest diamond company Alrosa could become the world's top diamond mining company, and is considering buying foreign assets, the company CEO said.
Sergei Vybornov said Alrosa has an opportunity to seize the initiative and become the global leader amid the ongoing crisis, as the company has the world's best diamond resources in Yakutia in northeast Siberia, while its rival De Beers has had to cut output.
"There is also an opportunity to purchase very good diamond assets abroad - small companies that are going bankrupt or are on the verge of bankruptcy," Vybornov said.
Alrosa accounts for 97% of Russian and 25% of global diamond output. The Russian government holds a 50.9% stake in the company.
Sergei Vybornov said Alrosa has an opportunity to seize the initiative and become the global leader amid the ongoing crisis, as the company has the world's best diamond resources in Yakutia in northeast Siberia, while its rival De Beers has had to cut output.
"There is also an opportunity to purchase very good diamond assets abroad - small companies that are going bankrupt or are on the verge of bankruptcy," Vybornov said.
Alrosa accounts for 97% of Russian and 25% of global diamond output. The Russian government holds a 50.9% stake in the company.
Turkey To Challenge India In Gold Jewellery Sector ---
According to Commodity Online, India may witness strong challenge from Turkey in the gold jewellery sector with that country focusing on better designs and new models.
According to reports, Turkish gold jewellery sector is in a strong position and is set to continue growing.
Reports appearing in the media said that Turkey could become the market leader for creating quality jewellery pieces from the precious metal.
Turkey is in a very successful position in terms of workmanship and design.
A strong culture of jewellery making combined with advances in marketing and design has put the country at the forefront of the sector.
The number of Turkish designers has increased with gold jewellery experts on every corner in the country.
According to reports, Turkish gold jewellery sector is in a strong position and is set to continue growing.
Reports appearing in the media said that Turkey could become the market leader for creating quality jewellery pieces from the precious metal.
Turkey is in a very successful position in terms of workmanship and design.
A strong culture of jewellery making combined with advances in marketing and design has put the country at the forefront of the sector.
The number of Turkish designers has increased with gold jewellery experts on every corner in the country.
GIA Museum To Debut 472-Carat Emerald --- It's a brilliant green four-inch hexagonal crystal
According to Rapaport, the Gemological Institute of America (GIA) plans to debut a recently discovered 472-carat emerald crystal from the Muzo region mines in Colombia. The emerald, the El Itoco crystal, was named after Muzo Indian lore, according to Ron Ringsrud, the emerald dealer who loaned it to the GIA Museum on behalf of its owner, Hernando Sanchez, who is the emerald mine shareholder and Colombian emerald exporter. "This is the first time any of the Colombian mine owners have displayed such a significant emerald at any museum worldwide," Ringsrud said. "This is by far the largest gem-quality crystal to have come out of this historical mining area in a long time."
GIA spokespersons stated that a gem-quality emerald crystal of this size is extremely rare. The four-inch hexagonal crystal possesses a color equivalent to the finest emeralds, according to Terri Ottaway, GIA Museum curator. "To have the El Itoco in our museum for our students and the public to view is an extraordinary honor. Pieces of this size and quality are the stuff of legends. It generates what Colombian miners call 'green fever' in the imagination," she said.
Ottaway stated that the GIA was chosen to display this coveted piece from among some of the nation's most renowned museums. The El Itoco is displayed in a case that includes three other emerald crystals and an emerald and diamond necklace and earrings suite designed by Jean Schlumberger for Tiffany & Co., circa 1960. The El Itoco emerald crystal will be exhibited in the GIA Museum until early fall 2009
GIA spokespersons stated that a gem-quality emerald crystal of this size is extremely rare. The four-inch hexagonal crystal possesses a color equivalent to the finest emeralds, according to Terri Ottaway, GIA Museum curator. "To have the El Itoco in our museum for our students and the public to view is an extraordinary honor. Pieces of this size and quality are the stuff of legends. It generates what Colombian miners call 'green fever' in the imagination," she said.
Ottaway stated that the GIA was chosen to display this coveted piece from among some of the nation's most renowned museums. The El Itoco is displayed in a case that includes three other emerald crystals and an emerald and diamond necklace and earrings suite designed by Jean Schlumberger for Tiffany & Co., circa 1960. The El Itoco emerald crystal will be exhibited in the GIA Museum until early fall 2009
Gems & Jewellery Sector May Recover Soon
Gems & Jewellery Sector May Recover Soon - - Reports of increasing consumer spending in the US
According to Press Trust Of India, Indian gems and jewellery exports, which have been declining owing to the global economic meltdown, are expected to recover in the next few months on account of revival of demand in the major market of America.
"We expect that, in June and July, there will be some revival of exports as one of the reports revealed increasing consumer spending in the US," Gems and Jewellery Export Promotion Council Chairman Vasant Mehta said.However, he said that exports would continue to remain down by about 20-30 percent in April and May. As per estimates by the Directorate General of Foreign Trade, the industry has suffered an export order loss of Rs 125.67 crore and cash loss of Rs 49.93 lakh during August-October 2008.The US accounts for 30 to 35 percent of the Indian jewellery exports.The declining trend had begun well before the Christmas season. In fact, the sector's exports had started showing a declining trend from November onwards when it dipped by 34.25 percent as compared to the same period last year. In December 2008, exports had declined by 25.89 percent over the corresponding period last year.Shipments during April-January stood at $16.3 billion against $16.7 billion a year ago.
According to Press Trust Of India, Indian gems and jewellery exports, which have been declining owing to the global economic meltdown, are expected to recover in the next few months on account of revival of demand in the major market of America.
"We expect that, in June and July, there will be some revival of exports as one of the reports revealed increasing consumer spending in the US," Gems and Jewellery Export Promotion Council Chairman Vasant Mehta said.However, he said that exports would continue to remain down by about 20-30 percent in April and May. As per estimates by the Directorate General of Foreign Trade, the industry has suffered an export order loss of Rs 125.67 crore and cash loss of Rs 49.93 lakh during August-October 2008.The US accounts for 30 to 35 percent of the Indian jewellery exports.The declining trend had begun well before the Christmas season. In fact, the sector's exports had started showing a declining trend from November onwards when it dipped by 34.25 percent as compared to the same period last year. In December 2008, exports had declined by 25.89 percent over the corresponding period last year.Shipments during April-January stood at $16.3 billion against $16.7 billion a year ago.
Saturday, February 21, 2009
"Diamond jewelry has grown to a tune of 10-15%"
"Diamond jewelry has grown to a tune of 10-15%"
In India there is nothing called recession but just a slow down in the economy. This slow down has happened only October 2008 onwards which also happens to be the wedding season. The impact of this slowdown has been very limited but consumers continue to buy jewelry during the wedding season. The diamond jewelry has grown to the tune of 10-15% over the same period last year.I also believe that diamonds are doing well across the country and it is not specific to any specific city or area. Diamonds are doing well across the country. The preference for diamonds has been very high for the last few years.
A recent consumer survey very clearly shows a high desirability for diamond jewelry as compared to plain gold jewelry. I feel that the desirability for diamonds has been built over the last full decade. Such high desirability remains high for a long time and hence I see the craze for diamonds to remain for a long time.
In India there is nothing called recession but just a slow down in the economy. This slow down has happened only October 2008 onwards which also happens to be the wedding season. The impact of this slowdown has been very limited but consumers continue to buy jewelry during the wedding season. The diamond jewelry has grown to the tune of 10-15% over the same period last year.I also believe that diamonds are doing well across the country and it is not specific to any specific city or area. Diamonds are doing well across the country. The preference for diamonds has been very high for the last few years.
A recent consumer survey very clearly shows a high desirability for diamond jewelry as compared to plain gold jewelry. I feel that the desirability for diamonds has been built over the last full decade. Such high desirability remains high for a long time and hence I see the craze for diamonds to remain for a long time.
Thursday, February 19, 2009
ROSY BLUE TO DIVERSIFY INTO OILSEED PROCESSING
ROSY BLUE TO DIVERSIFY INTO OILSEED PROCESSING
- Aimed at generating employment in the region, says Russell Mehta
De Beers Diamond Trading Company (DTC) sightholder Rosy Blue (India) Pvt. Ltd. is planning to set up either a castor seed or an isabgol (psyllium seed husks) processing plant in Gujarat, the financial daily Business Standard reports. The company has approached the state government to acquire 50 acres of barren land for the project, the report said.
“Diamond being the core business for us, we thought of getting into a second or third leg business,” said Rosy Blue chief operating officer Russell Mehta. “Though the company is yet to decide whether it would set up a castor seed processing plant or an isabgol plant, ultimately we intend to generate some more job opportunities in the region,” he added.
Rosy Blue also intends to set up a cutting and polishing unit near Palanpur, a historic diamond processing centre. “As of now, we are satisfied with our diamond cutting and processing capacity. Yet, the new plant is again an effort to generate more employment in that region,” Mehta remarked.
Business Standard said the new factory will be established through Rosy Blue shareholder, Banaskantha Industries Pvt. Ltd., on an additional 50-acre plot of land.
- Aimed at generating employment in the region, says Russell Mehta
De Beers Diamond Trading Company (DTC) sightholder Rosy Blue (India) Pvt. Ltd. is planning to set up either a castor seed or an isabgol (psyllium seed husks) processing plant in Gujarat, the financial daily Business Standard reports. The company has approached the state government to acquire 50 acres of barren land for the project, the report said.
“Diamond being the core business for us, we thought of getting into a second or third leg business,” said Rosy Blue chief operating officer Russell Mehta. “Though the company is yet to decide whether it would set up a castor seed processing plant or an isabgol plant, ultimately we intend to generate some more job opportunities in the region,” he added.
Rosy Blue also intends to set up a cutting and polishing unit near Palanpur, a historic diamond processing centre. “As of now, we are satisfied with our diamond cutting and processing capacity. Yet, the new plant is again an effort to generate more employment in that region,” Mehta remarked.
Business Standard said the new factory will be established through Rosy Blue shareholder, Banaskantha Industries Pvt. Ltd., on an additional 50-acre plot of land.
Monday, February 16, 2009
The Reasons behind Ups and Downs of the stock market
The core reasons are………………………..
Why Stocks prices Go Up
-- The company entered in to a big new contract
-- A great positive news coverage on the company in the media
-- Scientists discovered and opined that the product is good for something important
-- A famous investor is buying shares-- Lots of people are buying shares
-- An analyst upgrades the company, changing her recommendation from, for instance, "buy" to "strong buy"
-- Other stocks in the same industry go up
-- Most of the stock market is up
-- A competitor's factory burns down
-- The company wins a lawsuit
-- More people are buying the product or service
-- The company expands globally, and starts selling in other countries
-- The industry is "hot"
-- people expect big things for good reasons
-- The industry is "hot"
-- people don't understand much about it, but they're buying anyway
-- Increasing sales and profits
-- A great new executive is hired to run the company
-- An exciting new product or service is introduced
-- The company is bought by another company-- The company might be bought by another company
-- Additional exciting new products or services are expected
-- The company is going to "spin-off" part of itself as a new company
-- Rumours
-- For no reason at all
Why Stocks prices Go Down
-- Lots of people are selling shares
-- A factory burns down
-- Other stocks in the same industry go down
-- Profits and/or sales are slipping
-- Top executives leave the company
-- A famous investor sells shares of the company
-- An analyst downgrades his recommendation of the stock, maybe from "buy" to "hold"
-- The company loses a major customer
-- Most of the stock market is down
-- perhaps in a temporary recession or bear market
-- Another company introduces a better product
-- There's a supply shortage, so not enough of the product can be made
-- A big lawsuit is filed against the company
-- Scientists discover the product is not safe
-- Fewer people are buying the product
-- The industry used to be "hot," but now another industry is more popular
-- Some new law might hurt sales or profits
-- A powerful company becomes a competitor
-- Rumours
-- For no reason at all
These are the some reasons which creates wave in the market both for and against the company in different situations. But, an intelligent investor has to look at all these fundamentals before taking any reasons regarding buying and selling of shares and stocks of any companies. Now, I would like to add up one more thing that some of these reasons harm short term oriented investors and some time they harm both. Therefore, an investor with long term vision and patience will always make the most out of any stock market or any stocks. As a financial consultant, my advice is, if you really want to take part in the development of India, be regular in the long run.
Why Stocks prices Go Up
-- The company entered in to a big new contract
-- A great positive news coverage on the company in the media
-- Scientists discovered and opined that the product is good for something important
-- A famous investor is buying shares-- Lots of people are buying shares
-- An analyst upgrades the company, changing her recommendation from, for instance, "buy" to "strong buy"
-- Other stocks in the same industry go up
-- Most of the stock market is up
-- A competitor's factory burns down
-- The company wins a lawsuit
-- More people are buying the product or service
-- The company expands globally, and starts selling in other countries
-- The industry is "hot"
-- people expect big things for good reasons
-- The industry is "hot"
-- people don't understand much about it, but they're buying anyway
-- Increasing sales and profits
-- A great new executive is hired to run the company
-- An exciting new product or service is introduced
-- The company is bought by another company-- The company might be bought by another company
-- Additional exciting new products or services are expected
-- The company is going to "spin-off" part of itself as a new company
-- Rumours
-- For no reason at all
Why Stocks prices Go Down
-- Lots of people are selling shares
-- A factory burns down
-- Other stocks in the same industry go down
-- Profits and/or sales are slipping
-- Top executives leave the company
-- A famous investor sells shares of the company
-- An analyst downgrades his recommendation of the stock, maybe from "buy" to "hold"
-- The company loses a major customer
-- Most of the stock market is down
-- perhaps in a temporary recession or bear market
-- Another company introduces a better product
-- There's a supply shortage, so not enough of the product can be made
-- A big lawsuit is filed against the company
-- Scientists discover the product is not safe
-- Fewer people are buying the product
-- The industry used to be "hot," but now another industry is more popular
-- Some new law might hurt sales or profits
-- A powerful company becomes a competitor
-- Rumours
-- For no reason at all
These are the some reasons which creates wave in the market both for and against the company in different situations. But, an intelligent investor has to look at all these fundamentals before taking any reasons regarding buying and selling of shares and stocks of any companies. Now, I would like to add up one more thing that some of these reasons harm short term oriented investors and some time they harm both. Therefore, an investor with long term vision and patience will always make the most out of any stock market or any stocks. As a financial consultant, my advice is, if you really want to take part in the development of India, be regular in the long run.
Thursday, February 12, 2009
Women Regard Gold Jewellery Ideal Gift for Valentine's Day: WGC Survey
Women Regard Gold Jewellery Ideal Gift for Valentine's Day: WGC Survey - Represents something 'everlasting' say 76% of the correspondents
The Israel Diamond Industry Portal reported that according to participants in the World Gold Council's (WGC) 2008 jewelry survey, women all the world – no less than 76% - agree unanimously that a key reason for buying gold jewelry as a gift is "because it is everlasting,” which makes it very apt for a Valentine's Day gift. The survey was conducted by the GfK independent research firm, in the central gold jewelry markets of India, China, Saudi Arabia, Italy, Turkey and the USA. 7,500 females aged between 15 and 65 were asked what their reasons for buying gold jewelry were and to name favorite occasions for receiving gold jewelry. Valentine's Day was named a key date. Philip Olden, Managing Director of the World Gold Council, noted: "Our survey shows that Valentine's Day is an important occasion for receiving gold jewelry for women in different regions around the world. The higher gold price has added to gold jewelry's desirability despite these challenging economic times. Gold's perceived value and enduring emotional appeal are not mutually exclusive and set gold apart from other traditional gifts and apparently, holds the key to women's hearts on Valentine's Day.” Olden added: "With two-thirds of global gold demand coming from the jewelry sector, understanding our consumer is crucial to both the gold jewelry trade and the gold market as a whole. With retailers under severe financial pressure, unlocking the consumer purse through effective promotion of gold jewelry is critical. The continuous efforts of World Gold Council and our partners from the gold trade in the key jewelry markets have been notable in keeping this ancient adornment desirable and relevant in today's competitive consumer market." Even the younger segment that participated in the survey, who are typically more interested in spending money on gadgets such as mobile phones than spending their disposable income on high-end jewelry, appreciate the romance of gold jewelry - 30% stated that they wanted to receive it for Valentine's Day. Other key occasions on which women like to receive gold are birthdays, wedding anniversaries, weddings and religious festivals, with women also buying gold jewelry for themselves on these occasions
The Israel Diamond Industry Portal reported that according to participants in the World Gold Council's (WGC) 2008 jewelry survey, women all the world – no less than 76% - agree unanimously that a key reason for buying gold jewelry as a gift is "because it is everlasting,” which makes it very apt for a Valentine's Day gift. The survey was conducted by the GfK independent research firm, in the central gold jewelry markets of India, China, Saudi Arabia, Italy, Turkey and the USA. 7,500 females aged between 15 and 65 were asked what their reasons for buying gold jewelry were and to name favorite occasions for receiving gold jewelry. Valentine's Day was named a key date. Philip Olden, Managing Director of the World Gold Council, noted: "Our survey shows that Valentine's Day is an important occasion for receiving gold jewelry for women in different regions around the world. The higher gold price has added to gold jewelry's desirability despite these challenging economic times. Gold's perceived value and enduring emotional appeal are not mutually exclusive and set gold apart from other traditional gifts and apparently, holds the key to women's hearts on Valentine's Day.” Olden added: "With two-thirds of global gold demand coming from the jewelry sector, understanding our consumer is crucial to both the gold jewelry trade and the gold market as a whole. With retailers under severe financial pressure, unlocking the consumer purse through effective promotion of gold jewelry is critical. The continuous efforts of World Gold Council and our partners from the gold trade in the key jewelry markets have been notable in keeping this ancient adornment desirable and relevant in today's competitive consumer market." Even the younger segment that participated in the survey, who are typically more interested in spending money on gadgets such as mobile phones than spending their disposable income on high-end jewelry, appreciate the romance of gold jewelry - 30% stated that they wanted to receive it for Valentine's Day. Other key occasions on which women like to receive gold are birthdays, wedding anniversaries, weddings and religious festivals, with women also buying gold jewelry for themselves on these occasions
GSI Launches Minisite for Indian Jewelry Industry
GSI Launches Minisite for Indian Jewelry Industry
Gemological Science International (GSI) has launched its first minisite, http://www.gsiindia.net/, dedicated specifically to the Indian jewelry industry. GSI has been in India since 2006 and its business now serves both export and local sectors, according to CEO Mark Gershburg.
"The minisite concept has been used by many non-jewelry companies. We believe this is its first application in the jewelry industry," says Mr. Gershburg. "This approach allows us to offer more Indian-directed services online without overcomplicating our main site. It also shows our dedication and strong belief in the future of the Indian jewelry industry." In support of the Indian industry, including those looking to enter it, the GSI-India minisite provides information and services that are unique for a gem lab. For example, it offers a list of Indian suppliers of equipment and services along with directories of Indian jewelry associations, trade publications, and retail jewelers all over the country.
"Practically anything that can be done in the lab can be done by our MobilLab," says Mr. Gershburg. "It creates economic and efficiency advantages throughout the gemstone/jewelry supply chain."
GSI's customers in India, or elsewhere, also have the unique benefit of viewing their actual reports online, rather than just as data. Another one-of-a-kind feature allows GSI customers to track the progress of their goods in the lab in real time.
Gemological Science International (GSI) has launched its first minisite, http://www.gsiindia.net/, dedicated specifically to the Indian jewelry industry. GSI has been in India since 2006 and its business now serves both export and local sectors, according to CEO Mark Gershburg.
"The minisite concept has been used by many non-jewelry companies. We believe this is its first application in the jewelry industry," says Mr. Gershburg. "This approach allows us to offer more Indian-directed services online without overcomplicating our main site. It also shows our dedication and strong belief in the future of the Indian jewelry industry." In support of the Indian industry, including those looking to enter it, the GSI-India minisite provides information and services that are unique for a gem lab. For example, it offers a list of Indian suppliers of equipment and services along with directories of Indian jewelry associations, trade publications, and retail jewelers all over the country.
"Practically anything that can be done in the lab can be done by our MobilLab," says Mr. Gershburg. "It creates economic and efficiency advantages throughout the gemstone/jewelry supply chain."
GSI's customers in India, or elsewhere, also have the unique benefit of viewing their actual reports online, rather than just as data. Another one-of-a-kind feature allows GSI customers to track the progress of their goods in the lab in real time.
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