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[stonedyou] 14/11/2022 22:07

India’s gold market in October: festivals and weddings lifted retail demand.

Mukesh Kumar
Senior Analyst, India World Gold Council

Summary

The domestic gold price diverged from the international gold price: the MCX Gold Spot price rose marginally by 0.2% compared to a 2% decline in the LBMA Gold Price AM in USD.

Healthy retail demand in October drove a local price premium for the majority of the month.

Indian gold ETFs witnessed a marginal net inflow of 0.7t in October, as the correction in the domestic gold price ahead of Dhanteras likely lured investors into gold.

The Reserve Bank of India (RBI) added 1t of gold to its reserves in October, lifting its total gold reserves to 786.3t.1

Looking ahead

Retail demand is expected to remain healthy in the months ahead, supported by the ongoing wedding season.

Urban demand may benefit from improving consumer sentiment and an expectation of a lower inflation trajectory.

Rural demand may, however, face headwinds due to the poor kharif foodgrain output after uneven and erratic rainfall.2

The local market remained in premium for most of the month
The international gold price declined by 2% in October to US$1,639/oz, impacted by higher yields and dollar strength.3 Gold’s performance was relatively strong in local currency terms (+0.2%% m-o-m) as the INR depreciated against the USD.

The arrival of festivals and the wedding season, fortuitously coinciding with a price pullback, proved to be positive for Indian retail demand. This pushed the local market back into a premium for most of the month. The wholesale demand for bullion also picked up due to a correction in the customs tariff, which was revised downwards to US$533/10g from 1 October – it had previously been US$549/10g – resulting in lower bullion import costs. With this pick up in demand the local market touched a premium of US$3/oz by the end of the month (Chart 1).4

[stonedyou] 13/11/2022 23:35

Troubled Bitcoin may plunge by 25 per cent, Wall Street giant predicts.


The stunning downfall of FTX could lead to Bitcoin dropping another 25 per cent, a major US investment bank is predicting.

Wall Street JPMorgan said the rattled crypto sector is facing "a new cascade of margin calls" which will have a major impact on the value of Bitcoin, already down about 75 per cent in the past year.
At 9.30am AEST, Bitcoin was trading at US $16,400 ($24,560), down from just over $21,000 after a turbulent, market-rocking seven days.


Cryptocurrency insiders are debating whether to call the implosion of FTX, which filed for bankruptcy last week, a "Lehman moment," referring to the 2008 collapse of the investment bank that sent shockwaves around the world.
Many think it's an apt comparison.
"What makes this new phase of crypto deleveraging induced by the apparent collapse of Alameda Research and FTX more problematic is that the number of entities with stronger balance sheets able to rescue those with low capital and high leverage is shrinking within the crypto ecosystem," JPMorgan analysts wrote in a market note.
"Given the size and interlinkages of both FTX and Alameda Research with other entities of the crypto ecosystem including DeFi platforms it looks likely that a new cascade of margin calls, deleveraging and crypto company/platform failures is starting similar to what we saw last May/June following the collapse of Terra."
A margin call is when the value of securities in a brokerage account falls below a certain level, requiring an injection of more funds.
Margin calls only happen in accounts that have borrowed money to purchase securities, and they usually occur in fast-declining markets.

[stonedyou] 13/11/2022 23:31

Cryptocurrency Solana Collapses in FTX Scandal.

The token is the first big victim of the abrupt implosion of Sam Bankman-Fried's FTX cryptocurrency exchange.


Solana, considered, until recently, to be one of the cryptocurrencies with a promising future, is in the process of completely collapsing.

The token lost 61.6% of its value in the last seven days, according to data firm CoinGecko. Solana (SOL) prices are now down 95% from their all-time high of Nov. 6, 2021. Solana is currently trading around $14.12 from $259.96 in November 2021.

Solana's collapse is due to the Nov. 8 implosion of cryptocurrency exchange FTX, which filed for Chapter 11 bankruptcy three days later due to a cash crunch.

As a result, since Nov. 8, the price of SOL has declined by 51.5%, which translates into a loss in market value of $5.5 billion.

The FTX debacle and Solana's setback have affected the entire cryptocurrency market, which lost 17.6%, or $188.4 billion, since Nov. 7.

Bitcoin, the most popular cryptocurrency, is down 22.4% in one week. Ether, the second cryptocurrency by market value, has fallen 24.4% over the past seven days.

Solana is a token issued by the Solana Blockchain, which makes it possible to develop decentralized finance or DeFi projects that offer financial services such as loans, mortgages, financial products, etc.

Ties to Sam Bankman-Fried
The cryptocurrency is tied to an on-chain crypto exchange called project Serum, created by FTX founder Sam Bankman-Fried, who resigned on Nov. 11, following the bankruptcy of his empire. Serum is a liquidity hub.

[stonedyou] 13/11/2022 18:12

"Bitcoin is not a inflation edge."

"It`s not digital gold."

"De whole thing is a fraud just like these other."

"Crypto companies are ponzi schemes."

"De whole thing is one giant ponzi."

"It is literally a blockchain letter, a pyramid scheme."

"And de institions who diped their toe into water
now are dealing with a frozen toe."

[stonedyou] 13/11/2022 17:53

"If The FTX Collapse Didn't Wake You Up, Nothing Will" - Peter Schiff's Final Warning.





"If The FTX Collapse Didn't Wake You Up, Nothing Will" - Peter Schiff's Final Warning

Peter Schiff talks about the FTX collapse that happened this week, how the wealth of a lot of people vanished, and why you should cash out all your crypto before it is too late.

Peter Schiff is an American stock broker, financial commentator, and radio personality. He is the CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut. He is also involved in various roles in other financial services companies, including Euro Pacific Asset Management, an independent investment advisor, and Schiff Gold a precious metals dealer.

[cinoib] 11/11/2022 20:29

See gold still edging north, speaks well for Monday.

[lovewinshatelosses] 10/11/2022 18:11

Yes, a very satisfying day on the markets. Divmad: perhaps ii's further trimming their position here? I took a few off the table myself late in the day. Not because I have turned bearish on PAF, but simply because we have seen many a false dawn in PM's before and I am still trying to continue to build a 'war chest' for the next OMG event that rocks the markets and presents new and existing opportunities to buy quality stocks cheaply. 20p is still a great price IMO, but we know how irrational the markets so regularly are. Maybe I will get to buy them back at 16/17p again, or maybe not.

[divmad] 10/11/2022 17:36

Hardly showing any leverage to the gold price rally.

[cinoib] 10/11/2022 17:32

Lovewin, not much drag today with gold up another $42 at the mo, and Paf now over 19 that 20p is looking promissing.

[lovewinshatelosses] 09/11/2022 15:16

Reducing notification. Explains why we are not going up, like all the other PM miners today. Annoying, but hopefully only a temporary drag on the share price

[cinoib] 09/11/2022 09:59

I prefer the 20.

[stonedyou] 09/11/2022 08:39

Opinion David Fickling

Even Central Banks Are Buying Gold for the Zombie Apocalypse.

Governments in developing economies are building up their bullion holdings as trust breaks down.


The instruction manual for surviving a zombie apocalypse is pretty straightforward. Once you’ve kitted out your bunker with canned goods and firearms, get a supply of bullion. You’ll need it to buy bullets and bribe your way out of a death fight in Thunderdome.

That’s a line of thinking you might associate with cranky gold bugs, but it’s not a million miles away from the rationale behind fund flows in the precious metals market right now — and nations are in the driving seat. Central banks bought 400 metric tons of gold in the September quarter, the World Gold Council reported this week. That’s a record inflow on a par with what they’d purchase over a whole year in normal times.

[stonedyou] 08/11/2022 20:31

LAWRIE WILLIAMS: Eventful week ahead for gold and equities.



With most other asset classes vulnerable, gold investment – and perhaps silver riding

on gold’s coattails - could again come into its own as the ultimate safe haven when

all else is collapsing. It should certainly hold its own countering declines in

other investment sectors. Gold stocks too should outperform other equities as the

better gold producers – make sure you do your due diligence – will remain decently

profitable at current gold prices, while many general equities could well see major

price collapses in the light of sharply reduced demand.

[lovewinshatelosses] 08/11/2022 16:45

The way the PMs are swinging wildly about, I would not be surprised to see either 20 or 15 in the next few weeks; maybe even the next few days! The very definition of volatility.

[cinoib] 08/11/2022 16:16

Lovewin, thought I was on my own. Yes I added at 17 so hope I can see 20 in short term. Kitco very bullish on pm's today say it will continue if mid term elections continue the way they are looking the Republicans get in control and put the lid on Biden's game.

[lovewinshatelosses] 08/11/2022 16:03

Yes, I am. Was expecting to have the chance to add more at sub 17, but then gold did what it did! Sitting on my hands with my PM stocks for now. Too much excitement these days...PMs could just as easily crash back down again in short order. Which would be the point that I added more here and elsewhere. GLA.

[cinoib] 08/11/2022 15:17

Hello, anyone still here. Gold just spiked $20 so maybe we will finish the day blue, if the yanks don't kick it down again.