-lol-
I have found people who work in finance to be typically conservative in outlook. I wonder how many financial disasters it would take for the fiat money supply to lose confidence amongst the financial community? To the extent where they start thinking of other methods of storing wealth? The fundementals for gold and silver could change rather quickly in that circumstance imho.
Of course BWTHDIK.
hindustantimes.com
Bombay Bullion Association plans to resume futures trading in gold and silver in October after a gap of about four decades, its vice-president Harmesh Arora said on Wednesday.
The nearly 60-year-old association, which has more than 300 members, is in talks with banks to finalise the payment mechanism, he said.
"We plan to begin mock transactions in September and launch futures trading from early October," Arora told Reuters.
The members will use an online trading platform and will be connected through a satellite-based communication system, he said.
The bourse stopped futures trading 40 years ago after a ban by the government, which also restricted private ownership of gold to jewellery, making it illegal to own gold bars.
It lifted the restriction on ownership a decade ago and repealed the ban on futures in February this year. The Mumbai-based Multi Commodity Exchange and some other bourses also plan to start bullion futures trading in a few months.
India, the world's largest gold market, imports more than two-thirds of around 800 tonne of gold worth about $8.5 billion that it consumes each year.
FESTIVE BUYING
Traders said Indian gold imports, which average about 1.6 tonne a day, had fallen this week due to a rise in global prices, but retail demand for jewellery had started rising with the start of festival buying.
World gold prices were quoted at $357 an ounce on Wednesday, down from $361 on Monday but up from $352 a week ago.
"People think that prices will fall further and settle at around $350 an ounce," said Nayan Pansare, a senior official with jewellery trading firm, Intergold (India) Pvt Ltd.
Gold imports into Mumbai had halved to about 200 kg a day in the past week, but would rise to 700-800 kg in October, provided world prices remain at around $350 an ounce, said Prithvi Raj Kothari, a bullion trader.
Gold demand is usually dull in the monsoon months of June and July. Retail buying begins rising in mid-August with the start of the festival season and peaks in October with Diwali, the Hindu festival of lights. |
