GJ Town India

Embrace storytelling, symbolism & creative narratives to sell Make in India, Design in India-Create in India designer jewellery to the world   Part 2: In the session on Global & India Gold Demand Trends, Kavita Chacko, the Research Head for India at the World Gold Council (WGC), said, "2024 is likely to be a record year for mine production of gold; Jewellery demand in 2024 will be firm but vulnerable to gold prices.   Bar and coin investment likely to remain healthy, with high prices and geopolitics attracting attention. Central banks are likely to keep buying gold at an impressive rate. Global annual jewellery demand held steady in 2023 at around 2200 tonnes even in a very high price environment.    In 2023 Gold has benefitted from a) Highlighted geo-political risk; b) Consumer demand; and c) Central bank buying. Annual Gold demand in 2023 rose 4%, reaching an all-time high of 4,930 tonnes. Contribution of 2 sectors a) jewellery demand and b) central bank demand. T

Gold jewellery 7% & Gold demand up 10% in India   Somasundaram PR, Regional CEO, India, World Gold Council (WGC) said, “India’s gold demand of 210t in Q3 2023 was higher by 10% over Q3 2022 of 191.7t. Purchase of gold jewellery in India was up 7% y-o-y aided by softer gold prices and festive demand, more pronounced in South India.   Investment gold demand, that is bars and coins, jumped 20% to 54.5t from 45.4t in Q3 of the previous year. Price correction was a major factor that triggered the latent demand which we believe continues to be strong underpinned by strong positive economic sentiment mixed with uncertainties arising from a variety of factors such as fear of inflation, below-normal monsoon and global developments. Gold recycling in India recorded 19.3t, a 20% growth over last year, which is more due to low base of last year and perhaps some profit taking. We believe recycling will continue to grow as initiatives of organised players to increase recycling of jewellery start

Gold price support over Rs 61K per 10 grammes   Right now our auspicious festive Gudi Padva, is just at latch and gold price trend is on rock! At the occasion Somasundaram PR, Regional CEO, India at World Gold Council (WGC) said, “This year Gudi Padwa is being celebrated even as gold prices are headed for historic highs in the domestic market.    As economic growth influences demand significantly and this gets reflected in gold purchases on such auspicious days, demand is poised for good growth in 2023. Price pressures could keep rural demand subdued. Urban buying and digital gold accumulations which permit flexible low-ticket sizes could be emerging stories during this festive season.”  In general WGC is not focussing much on gold price trend and gold price outlook. In the perspective Colin Shah, MD, Kama Jewelry expressed as an expert on gold prices hitting Rs 60,000/10gm level.  He said, “Gold prices have risen almost 7-8% in the past month.    The rally in the yellow metal is p

The myth regarding gold & what does the data tell us?   Recently ABC Bullion highlighted the myth & asked, does gold need the dollar to fall? One of the interesting myths regarding gold as an investment is one that suggests it only does well in periods the US dollar (USD) is falling. Indeed, some analysts go so far as to say that it’s the anti-dollar.   It’s of course worth noting briefly that up until 1971, US dollars were formally backed by gold, at a formal price of close to $35 per troy ounce (oz), meaning you could exchange USD $35 for an ounce of gold through the banking system.   This backing was brought to an end during the Nixon administration, and it has now been just over 50 years since the US abandoned the gold standard. Back to the myth regarding gold and its relationship with the USD, in simple terms, some believe that anytime the USD is going up in value, the gold price will be going down, and vice versa. A detailed examination of market history tells us t

Gold and crypto currencies, WGC report   Recently World Gold Council (WGC) published the report, Gold and crypto currencies: How gold’s role in a portfolio differs from cryptos. The recent rapid ascent of crypto currencies over the past year has captured the attention of investors.   Often, investments in cryptos are equated to investments in gold. Despite some apparent similarities, we believe that gold stands apart from crypto currencies, both fundamentally and practically. Our analysis demonstrates that gold, 1: is a tangible asset with a unique dual nature as an investment and consumer good, 2: is highly liquid and less volatile, 3: is a proven long-term strategic investment & 4: may mitigate the risks that cryptos could bring to portfolios. The report also highlights, gold’s role in a portfolio differs from cryptos. That said, 1: Gold and cryptos are fundamentally different, 2: The advent of blockchain and crypto currencies has catalysed innovation in the financial industr

India jewellery demand down by 42% in 2020   Expected 2021 to go further normalcy returns and s teady course of reforms strengthen the industry India!   Implementation of mandatory hallmarking in June 2021   Key Highlights: 1: Gold demand full year January –December 2020, 2: The gold demand for the full-year 2020 is 446.4 tonnes compared to 690.4tonnes in 2019, 3: Total jewellery demand in India for 2020 was down by 42% at 315.9 tonnes as compared to 544.6 tonnes in 2019, 4: The value of jewellery demand in 2020 was Rs.133,260 crores, down by 22% from 2019(Rs. 171,790 crore) .   5: Total investment demand for 2020 was down by 11% at 130.4 tonnes in comparison to 145.8 tonnes in 2019 In value terms, gold investment demand was Rs. 55,020 crores, up by 20%from 2019(Rs. 45,980 crores),6: Total gold recycled in India in 2020 was 95.5 tonnes as compared to 119.5 tonne. Somasundaram PR, Managing Director, India, World Gold Council said:“India’s gold demand dropped by over a third in 2

Gold ETF inflows continued, but at a significantly lower pace   Announcing October highlights World Gold Council (WGC) reports that the Gold-backed ETFs and similar products (gold ETFs) recorded their 11th consecutive month of net inflows during October, matching the record number of positive monthly flows set in April 2006.   Gold ETF holdings increased by 20.3 tonnes (t), +US$1.4bn or 0.6% of assets under management (AUM), during the month as the gold price moved mostly sideways, finishing slightly below US$1,900/oz. Net inflows of 1,022t (US$57.1bn) in 2020, so far, have driven global gold ETF holdings to a new all-time high of 3,899t (US$235bn in AUM). By furnishing monthly regional overview, WGC reported positive inflows continued during October, albeit the lowest monthly increase in 2020, as most risk assets, like stocks, were lower on the month. Nearly all the net inflows came from European funds which added 20.2t (US$1.4bn, 1.4% AUM).  North American funds added a nominal a

  Understanding the gold carry trade!   Gold deposit rates, a guidance paper are just published by the World Gold Council (WGC) is the market development organisation for the gold industry. WGC say, ‘we provide insights into the international gold markets, helping people to understand the wealth preservation qualities of gold and its role in meeting the social and environmental needs of society. Here is the choicest part; related parts would be carried here time to time.   It is hard to examine gold lease rates without first understanding the gold carry trade. The gold carry trade once played a significant role in the gold lending market and constituted a large part of the demand to borrow gold. However, as market conditions changed over the years, the risk of the trade increased while its profitability declined. This reduced demand for borrowed gold and may be one of the leading causes behind the decline in gold lease rates. Under the gold carry trade, a trader, typically a bullio

WGC reports, Gold mid-year outlook 2020 Recently World Gold Council (WGC) released their Gold mid-year outlook 2020-Recovery paths and impact on performance. The report said Investors have embraced gold in 2020 as a key portfolio hedging strategy. Looking ahead, expectations for a faster recovery (V-shaped) from Covid-19 are shifting towards slower recovery (U-shaped), or potential setbacks from additional waves of infections (W-shaped). Regardless of the recovery type, the pandemic will likely have a lasting effect on asset allocation. It will also continue to reinforce the role of gold as a strategic asset. And we believe that the combination of high risk, low opportunity cost and positive price momentum looks set to support gold investment and offset weakness in consumption from an economic contraction. Gold outperformed in H1 as equities recovered: Gold had a remarkable performance in the first half of 2020, increasing by 16.8% in US-dollar terms and significantl

The psychological resistance of (gold) USD 1,800 per ounce has been surpassed! At Precious Metals Watch, Georgette Boele, Precious Metal Strategist-ABNAmro observes, 1: Gold powers to an all-time high across a range of currencies, 2: Against the dollar, gold’s all-time high of USD 1,921 is now within reach, 3: The stars are aligned for gold prices to continue to rise, 4: Aggressive monetary policy easing, ultra-low interest rates, negative US real yields, fiscal. 5: stimulus and the technical outlook all support gold prices, 6: Nonetheless, positioning does remain extreme which could encourage volatility, 7: Our new gold price forecast for end 2020 is USD 1,900 per ounce (was USD 1,700 per ounce) & 8: Our new gold price forecast for end 2021 is USD 2,000 per ounce (was USD 1,800 per ounce). She inks about gold price record, we had expected another risk off wave in financial markets to support the US dollar and to result in temporary gold price weakness. Up to