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Headed For 35000 ?

wealthymattersGold, in India, today hit an all-time high as the rupee continued with its downward spiral against the US dollar. The yellow metal breached its previous high of Rs 32,464 made on November 26, 2012, to hit a record high of more than Rs 33,600 per 10 grams.While the gold in US dollars terms is still way down from all-time high of $ 1,920 an ounce, the Indian markets have run up on the back of rupee weakness,

Gold in the last two months has not only recovered the 20 per cent it lost in 2013 but also gained 6 per cent over it.

With the global gold prices headed into bull territory and the Indian price in unchartered territory, some more strength is expected from here on. Bullion traders expect prices to breach Rs 35,000 this week itself.


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Zaveri Bazaar Gossip


If you believe that there is something to be gained to by keeping your ears open to bazaar gossip,here is the on-dit in Mumbai’s wholesale gold market:

The international slowdown in gold prices has hit India in a significant way. Investors are disappointed and look to sell at the earliest opportunity.The current scenario does not make for a buyer’s market. People are waiting  for prices to drop further. The sale of exchange-traded funds (ETFs) and short-selling by investors has contributed to the decline.

A correction was in order given the astronomical rise in bullion over the past few years.Its the same for silver as well. This could be good news for retail buyers with the wedding season coming up in May.

May 13 is Akshay Tritiya, which may witness a drop in sales. The prospect of a free fall in prices will prompt buyers to defer non-essential purchases until Dhanteras, when prices could be even lower at round 22000-23000 Rupees per 10 grams.

Certainly,going by the subdued responses to the Siddhivinayak Mandir‘s gold auction for drought relief on the 11th i.e, Gudi Padwa, there is reason to be cautious.Small buyers were on a strict budget and the devotees who regularly make the big purchases were uninterested and absent.

The Yellow Metal Fixation


The Pros And Cons Of The Gold Standard


The 500 per cent rise in the gold price since April 2001 prompted gold bugs to speculate about a new age of gold

Return Of The Barbarous Relic

Despite Gold’s Rising Popularity, Central Reserves To Continue Using Paper Money

John Milton wrote, “Time will run back and fetch the age of gold.” In the 19th and early 20th centuries, gold played a key role in international monetary transactions. The gold standard was used to back currencies, values were determined by its fixed relationship to gold and the precious metal was used to settle international accounts. Imbalances ininternational trade were settled by physical transfers of gold bullion. Read more of this post

Gold Smuggling


Here is a fact I came a cross about a week ago.If you are trying to decide which way the price of gold will move short term, remember this fact.India’s official gold purchases might be down but consumption has probably not reduced as much as many pundits are positing, despite the high prices in Rupee terms.Mumbai gold prices are about Rs 1,500 per 10 grams higher than international prices

Wholesale Gold and Silver Prices

wealthymatters.comThe gold and silver  you buy passes through a complex system of wholesalers, stockists, bulk consumers, re-sellers, and retailers before it reaches your hand.Have you ever wanted to know what might be the prices the Big Boys pay to buy their bullion?After all such information may come in handy when bargaining for your small purchase.I find the wholesale price of bullion in Mumbai  here:http://www.bombaybullion.com/

Gold Prices on the Street

The recent fall in gold prices in the international markets made news headlines in India.The MCX mirrored the COMEX but things were a little different on the street.Here is a story from this week’s Wealth Times.Do read it for an idea of how ETFs react vis-a vis bullion and for how to try and get a discount out of your jeweller.

Is the fall in gold prices genuine

Khyati Dharamsi

wealthymatters.comWhen gold prices fell by more than 2,500 from 28,210 per 10 gm on 21 September to 25,685 on 29 September,people hailed the good news.But much to their disappointment,they found that it wasn’t as cheap as it was touted to be.While the yellow metal was trading at the 25,000 mark,most jewellers charged 27,500 per 10 gm,even 28,200 at some stores.When asked about the difference in the rates,jewellery store managers said that the rates quoted in the media were averaged out,so they were not applicable. Read more of this post

Jim Rogers Interview on ET NOW


Here’s the transcript of Jim Roger’s interview on ET NOW as published in today’s ET:

Gold prices are overdue for a correction and it will last for several months, says Jim Rogers, chairman, Rogers Holdings. In an interview to ET NOW , the commodities investor speaks on his outlook on commodities and rupee.
Gold is down 10% in the past week and the CME increased margins by 21%. What is your outlook for gold prices? Do you see gold to $2,000 in the near term and medium term?  Read more of this post

Historic Prices of Gold

This is my find for the day.I found the original here http://www.indiabullion.com/gold.php.

Combined with the  newer data here http://goldpricenetwork.com/goldprice/india/ we can have 178 years of gold price history in India.Perfect for all sorts of  analysis!

By the way I was surprised to see some price drops in the price of gold.None of my elders could recollect any of it and they are regular gold buyers!The human memory apparently is far from perfect! Read more of this post


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