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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (25504)	11/21/2007 6:23:35 AM
From: TobagoJack	Read Replies (4) \| Respond to of 217588

maurice, never mind cyber nothings i forward to you a e-mail just in, speaking of bling blings and biscuit QUOTE there is a bit of misunderstanding/misrepresentation of facts on Gold demand in India (I shall only comment on that as my knowledge on China demand is a bit hazy) as is well known, Indians have a centuries-old affinity towards Gold....a few decades back women preferred jewellery hence the well known fact of Indians consuming lots of Gold via jewellery. Over the past few years, I wud say esp. in the past 5-7 years as the economy opened up and income levels grew many-fold and as women became more conscious of their overall economic power (ie: these days women too have been earning salary levels which a few decades ago was only the domain of the male population), women still love Gold but wud not want to be looking blingy-blingy (I hate that word bling being ascribed to Gold)...so whilst they appear more modern / fashionable they wear less jewelry made of yellow Gold but at the same time are more financially savvy to not forget the virtues of Gold. So the same women now wud go to their neighborhood friendly jeweler shop and spend on Gold, but in the form of 'biscuit'...Gold bars are famously (or infamously) referred to as 'biscuit'....in fact many household have had a regular plan of buying 10gms biscuit every 2-3months from their saving pool. Now what happens as misinformation is that at the jewelers end he sells Gold but not in jewelry form but in coin/bar form but he does not report accurately what form it is sold....so after the huge pool of misinformation is presented what we in the outside world read is that jewelry demand is high but if prices go higher jewelry demand will falter. both these are to a large part incorrect. Jewelry demand is there and will always be there but that is subtly being taken over by 'biscuit' demand and as far as prices going higher denting demand is also unfounded as the households are saving in Gold, not spending on jewelry ..... so one needs to carefully filter thru all this blabber coming out .... I wud guess in China too as local Chinese banks make Gold available to the retail public, the savings wud find their way into bars/coins.... in Silver too it is a similar type story...Silver jewelry demand in India may actually be falling as more wud buy Gold jewelry as incomes rise, but in metro's/bigger cities affluent people are looking to Silver as a form of lifestyle - ie: buying a Silver dining set....this a proper pure Silver dining set (unlike wat we see in fashionable stores like Harrods where the dining set which is Sterling Silver which is not pure 999 Silver)....as they are more affluent, Indians do enjoy their family meals/get-together's in Silver cutlery, which indeed looks lavish (I own one and hence vouch for it)...so this too forms a part of Silver demand ... but in this mad reporting data, this gets clubbed into jewelry data as the same dining set is bot from the same friendly neighbourhood jeweler shop !! net net... a lot of demand is under-reported / mis-reported.... UNQUOTE