Prithviraj Kothari - The Bullion King Of INDIA: December 2019

Tuesday 24 December 2019

Gold imports may dip 30% this month

Prithviraj Kothari | Kolkata: Gold imports may fall about 30 percent in December from the previous month, following a drop in demand due to higher prices. In October, about 40 tonnes of gold were imported. Imports rose to 71 tonnes in November as domestic prices fell to ₹37,900/10 gm from ₹38,900. This followed indications that the US and China were closer to an interim trade deal after months of dispute.

Prices, however, rose earlier this month despite concerns ebbing over a prolonged US-China trade war, even as global investors await further clarity from “phase one” of the trade deal. Gold imports are expected to touch 50 tonnes in December, said Anantha Padmanabhan, chairman, All India Gem, and Jewellery Domestic Council. “If the price is stable, in the range of ₹38,000 to ₹39,000/10 gm, we expect 40-50 tonnes of demand for gold monthly in Dec-February,” said Prithviraj Kothari, president, Indian Bullion, and Jewellers’ Association & MD of RiddiSiddhi Bullions.

Bullion dealers are offering a discount of $3 per ounce to persuade jewellers to offload year-end stock. Analysts said demand for gold has been high on global economic growth concerns and an accommodative stance by central banks.

Read more at:
https://economictimes.indiatimes.com/markets/commodities/news/gold-imports-may-dip-30-this-month/articleshow/72949062.cms

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Monday 23 December 2019

GOLD STEADIES AHEAD OF GLOBAL MARKET PROMPTING

Prithviraj Kothari | The year 2019 has been a decent year for the gold market. Gold experienced colossal highs because of the vulnerabilities in the market. The US-China exchange levy influenced the cost of gold and financial specialists in gold were at a sitting tight period for goals. Besides the exchange levies issues not being settled, monetary log jam, rupee deterioration, and financial log jam assumed a significant job in the changes of gold costs.

The gold value hit an extreme high this year. In the previous four years, there hasn't been a huge ascent in gold costs in contrast with what gold financial specialists have encountered in the year 2019. Costs of gold rose by 28 percent. Gold has kept up its situation as the most believed metal among its advantage classes.

The future for gold in 2020 is uncertain, as the US-China exchange talk is still left uncertain. The President of the United State, Donald Trump has by and by given a perspective on consolation that the issues would go to a neighborly understanding. Likewise, Donald Trump expressed that stage one exchange settlement would be marked in the blink of an eye.

China as of late scrutinized the bill passed by Washington on December ninth expressing that the lawmaking body passed a guard charge that will end up being an obstruction, as opposed to a helpful factor for the exchanging exercises. This was additionally worried about those engaged with the gold market.
Spot gold expanded 0.1 percent at $1,479.05 per, while US gold prospects rose 0.1 percent to $1,482.90 per ounce.

As indicated by the realities drawn, 2020 will be a nonstop procedure for geopolitical and financial dangers. The gold market is recommended to reach more up to date highs in the following a few years. Gold costs are around Rs 39,000. In the year 2020, it may be in the scope of Rs 38,000 on the drawback and Rs 42,000 on the upside. The shopper request became flimsier because of the abatement in imports from India and China. In connection to import status, this has prompted the costs of gold flooding high.

Silver was at $17.19 per ounce, while platinum increased 0.9 percent to $916.70.

There are a few upgrades in the gold exchange, however, there is no comprehensive arrangement yet. Additionally, the US Federal Reserve bank not raising financing costs at any point in the near future consoles that the gold market would in any case experience a positive result. This would make gold extremely moderate in the market.

Gold, thought about a protected interest in the midst of political and financial vulnerability, is set to enroll its greatest year since 2010 predominantly because of the 17-month long levy war and its effect on the worldwide economy.

Gold is set to plan for its greatest year since 2010 in connection to the 17 delayed exchange tax strain and furthermore how it impacts the worldwide economy all in all.

Different valuable metals, for example, palladium tumbled from 0.7 percent to $1,841.71 per ounce, in the wake of declining as much as 5 percent in the earlier session.

Prithviraj Kothari is the author of this article. Find more information about Prithviraj Kothari.

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Sunday 22 December 2019

Gold prices may scale new highs over global cues

Prithviraj Kothari explained that economic slowdown, liquidity crisis, and rupee depreciation are catalysts of the elevated prices of the yellow metal.

HYDERABAD: In 2019, gold prices hit an all-time high. There has not been any significant upswing in gold prices in the last four years, until 2019, when prices suddenly rose by 28 percent. The yellow metal remains one of the most trusted asset classes and interestingly, the one-year returns from gold exchange-traded funds too rose at about 14 percent, in line with the increase in prices of physical gold.

But what does 2020 hold for gold prices?

Experts believe that the precious metal will face a volatile year ahead, thanks to the ongoing US-China trade talks, US Presidential elections, and the Brexit outcome.

Globally, prices swung on weaker growth momentum, the trade war tensions and easing of monetary policies across economies. Incidentally, the equities hit a high in the US market and dollar continued to surge.

Analysts believe that geopolitical and economic risks will likely continue in 2020.

This will support gold prices, which is why they remain bullish on gold. For instance, both Goldman Sachs Group Inc and UBS Group AG see prices inching up to $1,600 an ounce, a level was last seen in 2013.

“The gold market will soon reach newer highs ideally in the next two-to-three years,” said Prithviraj Kothari, national president, India Bullion and Jewellers Association Ltd.

Kothari explained that economic slowdown, liquidity crisis, and rupee depreciation are catalysts of the elevated prices of the yellow metal.

“Currently, gold prices are around Rs 39,000 and I am positive that in 2020, they will be in the range of Rs 38,000 on the downside and Rs 42,000 on the upside,” Kothari added.

Lower imports from India and China, reflecting weaker consumer demand, are also adding to the rising surge in gold prices.

In 2019, Indians’ appetite for gold was at its lowest since 2016, as prices touched a record high of Rs 39,885 per 10 grams in early September, partly owing to higher import taxes and global factors.

Though prices have retreated since then, they continue to remain high by over 20 percent this year.

Credit: https://www.newindianexpress.com/business/2019/dec/23/gold-prices-may-scale-new-highs-over-global-cues-2079781.html

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Wednesday 18 December 2019

At $3bn, gold imports at 6-mth high by value - Times of India

Prithviraj Kothari | Chennai: Importing gold worth $2.69 billion, the yellow metal touched a 6-month high by value, registering a 6% increase year-on-year. In FY20, imports remained high in April and May, at $3.95 billion and $4.7 billion. The imports began to fall in June. Subsequent months saw a sharp sequential drop in imports with September seeing the lowest at $1.2 billion. Lower prices are also fuelling the demand. Even as prices are higher than last year same period, spot gold prices stand at Rs 37,700 for 10 gram of 24 carats, was lower than September prices. The Gems and Jewellery Export Promotion Council added that the hike in import duty from 10% to 12.5% has further increased the price of gold and brought down the demand for exports. Colin Shah, vice-chairman, GJEPC said that however in November, the demand went up. “For the period April to November, there is a 5.7% Y-o-Y increase in import of gold for the purpose of export,” he added. Wedding demand, although lower than last year, has pulled up the imports, jewellers add. “The months from June-September saw sluggish demand, However, with time, as the festival season began and now the wedding season is going on the demand has slowly picked up,” said Prithviraj Kothari, national president, India Bullion, and Jewellers Association. Kothari added that by volume, November saw imports at 71 tonnes.

Credit: https://timesofindia.indiatimes.com/business/india-business/at-3bn-gold-imports-at-6-mth-high-by-value/articleshow/72859973.cms

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Monday 16 December 2019

GOLD DEMAND SLACKS BEHIND DUE TO LOW PURCHASE DURING WEDDING SEASON

Prithviraj Kothari | Gold is the main adornment that is purchased in India. Individuals believe gold to be an indication of riches and flourishing. Numerous celebrations celebrated in Indian culture empower the acquisition of gold. Weddings are one of the occasions which should acquire more request and acquisition of gold gems as it is the basic type of blessing that individuals provide for one another during such festivals. Gold financial specialists hold up fully expecting these occasional occasions as they guarantee that deals would be solid.

This year the buying conduct of purchasers for gold during the wedding season diminished. This is compelling gold vendors to begin selling gold at a lower rebate because of the surplus load of gold supplies in the market and no better methods for circulation.

In Prithviraj Kothari's sentiment, In the household advertisement, gold vendors are selling gold at a markdown of as much as 2 dollars for each ounce contrasted with the earlier week wherein the residential cost for gold was at 1 dollar.

India is the second-biggest market for gold. Household costs for gold in India included 12.5 percent of import duty and furthermore 3 percent of offers charge. The rebate gave concerning the cost of gold is playing a factor in the buyer acquisition of gold. In any case, this year has encountered lesser requests in the general ignoring of the household gold market.

The wedding season and the celebrations not doing admirably to help the interest in gold is negatively affecting the gold stocks inert in the market. Financial specialists and vendors are getting innovative in how to debilitate the gold stock they have inside their territory.

"In November, India's gold imports had hopped to 78 percent after gem dealers restocked in light of the fall in gold costs", said Prithviraj Kothari.

The interest for gold was truly low yet superior to anything that it was a month ago. The costs of gold decreasing would urge individuals to buy gold. Likewise, discount purchasing of gold would rise if the gold cost gets diminished a tad.

This would likewise bolster the interest during Christmas as well. Different districts in Asia, for example, China are anticipating popularity during Christmas and the Chinese New Year merriments. The Chinese celebration would likewise impact the interest of gold in different nations, for example, Singapore as vendors are offering special procedures for the bullion.

Prithviraj Kothari clarified that the gold financial specialists in India are trusting that the limits would help dispose of the current accumulated gold-stock they have and would emphatically support the gold market.

The absence of clients is making the gold market slack behind. The financial log jam and the cost of gold shooting up left a negative effect on the interest of gold during the wedding seasons. The interest isn't destroying yet it is lower than desired. The gold market in the year 2018 encountered a superior deal on gold than 2019 by 15 percent.

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Thursday 12 December 2019

Here's how to check the purity of your gold jewellery

Prithviraj Kothari |

Majority of the gold that we buy in the form of jewellery is not certified for purity
Gold jewellery has to be hallmarked to certify its purity, but how often do we take care of such details?

It's not uncommon to find people who realize their gold ornaments are not pure only when they go to sell them. The fact notwithstanding that Indians are the second biggest consumers of gold in the world, majority of the gold that we buy in the form of jewellery is not certified for purity. Gold jewellery has to be hallmarked to certify its purity, but how often do we take care of such details?

Well soon enough it may become the norm as the government is planning to make hallmarking of gold jewellery and artefacts compulsory from early next year. The government will issue a notification with regards to hallmarking of gold jewellery and artefacts on 15th January 2020, said Danve Raosaheb Dadarao, Minister of State for Consumer Affairs, Food and Public Distribution in a written reply in Rajya Sabha on 6th December.

“This move will benefit the consumers as hallmarking of jewellery will bring in transparency and bring in trust factor among the consumers as they can now be assured that the gold jewellery they are buying is certified for purity," siad Prithviraj Kothari, national president, India Bullion and Jeweller Association. Currently hallmarking of jewellery is voluntary and a very small percentage of jewellers sell hallmarked jewellery.

“Transparency is not there. A fair amount of impurities are being sold to the consumers right now. This move is in the right direction and was much needed," said Sandeep Kulhalli, senior vice president, retail and marketing, jewellery division, Titan Company Limited. According to Kothari, there are over three lakh jewellers and only around 30,000 are registered with the Bureau of Indian Standards. Bureau of Indian Standards (BIS) is the accreditation agency in India which certifies the assaying and hallmarking centers.

A jeweller needs to obtain a licence from BIS and after that it can get the jewellery hallmarked through any of the BIS recognised assaying and hallmarking centers. As on 31 Oct 2019, 877 assaying and hallmarking centres have been recognized by BIS.

How to check if your gold jewellery is pure

Many jewellers sell hallmarked jewellery. If you are holding a jewellery or planning to buy you can check beforehand if your jewellery is hallmark certified or not. Here's how.

First you need to understand that the purity of the yellow metal is measured in caratage. The gold in the purest form is of 24 carat, but it's not possible to make jewellery as 24 carat gold is too soft. Typically, jewellery is made from a gold whose purity ranges between 14K and 22K. Hallmarking of jewellery is done in three categories- 14k, 18k and 22K.

In percentage terms, 14k would mean 58.5 % purity (denoted by 585 ), 18k would mean 75% purity (denoted by 750) and 22k would mean 91.6% (denoted by 916) purity.

While buying a hallmarked jewellery, you need to look at four things-- BIS logo (a triangle), purity of gold (916 for 22carat gold), assaying or hallmarking center’s mark, and jeweller’s identification mark. This will usually be engraved in the ornament.

Hallmark is important to be assured of the purity and it's likely to become mandatory once the government comes up with a notification. So make it a habit to look for hallmark, after all you are buying some very expensive item that someday may become the family heirloom.

Credit: https://www.livemint.com/money/personal-finance/here-s-how-to-check-the-purity-of-your-gold-jewellery-11576034644400.html

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Tuesday 10 December 2019

TALKS OF RECONCILIATION ON US AND CHINA NEW TARIFFS

Prithviraj Kothari | The gold marketplace is steadying ahead as the brand new updates on talks of sparkling our tariffs with the Chinese language market come to actualization. The next spherical of the United States price lists on Chinese imports is meant to become effective with the aid of the cease of this week. Gold investors nonetheless look ahead to the readability of these new findings. Around 0.1 percent to $1,461.05 in line with ounce by using 0156 GMT, spot gold became down. America's gold futures have been down at $1,465.forty.

The exchange talks among China and we have been making a few modern leaps as china hopes to ultimately comfortable an exchange address the USA as soon as possible. President Donald Trump claims to be settling an alternate agreement with Beijing to boost the prevalence of the latest tariffs the Chinese language imports really worth a quantity of 156 billion dollars. Us finalized a cut-off date for the brand new tariffs with China imports to be on the fifteenth of December.

In keeping with Prithviraj Kothari’s, the Chinese language is already shopping for shipments from the united states which offers a sealed confirmation of hope that the anxiety is subsequently coming to a standstill. This may assist the gold market each the world over and additionally within the domestic marketplace.

Buyers nevertheless watch for the subsequent round of Chinese items to come to impact. The meet with the federal reserve machine of the USA could be an essential one as that could decide the route to which the USA and China come to a decision in terms of the change tariffs. If the relevant bank device of America proves to be stiff and biased in phrases of the negotiation of new price lists, this could bring on hindrance in the trade tension from getting resolved. Gold traders will pass back to their secure haven and alternate gold in a mediocre manner.

Both china and we are claiming to need high-quality reconciliation. Therefore, investors will watch for the results on the 15th of December to move on to adapt to the uncertain market.

In Prithviraj Kothari's opinion, the extended change battle between china and the united states has impacted both the overall economic boom and the charge variety of gold globally.

Due to the effect on the financial increase, the United States Federal Reserves have reduced gold charges 3 instances this year. The demand for gold is on the upward push however uncertainty nevertheless beacons on buyers. The interest rates are still at a set percentage of 1.50 percentage to one seventy-five percentage.

Spot gold is predicted to test at $1,455 consistent with an ounce, however, it may fall to $1,440. The resistance for gold is at $1,466, but with any additional break in the marketplace. It can result in a benefit of $1,478.

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Tuesday 3 December 2019

HALLMARKING OF GOLD JEWELLERY MANDATORY IN INDIA’S MARKET

Prithviraj Kothari | In India, the hallmarking of gold jewellery will become mandatory for gold jewellers in the coming years. The government of India announced its decision to make it very important for the gold jewelleries sold in India to be approved under the BIS (Bureau of Indian Standards). A hallmark in gold jewellery is a guarantee of purity and fineness of gold.

In India, the Bureau of Indian Standards (BIS) is authorized to analyze the purity of gold. The BIS licensed assessment and hallmarking centers grant hallmarks to BIS-certified gold jewelers.

In Prithviraj Kothari’s opinion, the hallmarking of gold jewelleries will change the dynamics of the gold market. It eliminates non- hallmarking gold pieces of jewellery sold which will protect the consumer rights to a quality product. Since most of the non-hallmarked gold jewelleries are sold to unaware consumers in the small cities and rural areas who lack the knowledge of the benefits of hallmarked gold jewellery and the drawbacks of non-hallmarked gold jewellery.

The initiative to make it mandatory for all gold jewelleries be assessed first by the Bureau of Indian Standards (BIS) before it gets sold in the market is a positive one because it protects the consumers from being sold impure gold. It will also help decrease the fraudulent selling of impure gold to unaware buyers in the gold jewellery business sector.

The government will provide a notification on hallmarking by January 15, 2020, giving the jewellers a year to register with the Bureau of Indian Standards (BIS) and to exhaust their stocks. The formulated standards of the BIS for gold jewellery are of three grades, the 14, 18 and 22 carats. Bullion dealers and jewelers in India will experience an urgent push to clear all the non-hallmarked stock they own. Otherwise, they will be forced to meet all their jewelleries to make hallmarked ones where they, unfortunately, will lose jewellery making charges.

According to Prithviraj Kothari, the non-hallmarked jewelers will face great loss as the one year period draws closer. Therefore it will be necessary to provide discounts to consumers for non-hallmarked jewellery to clear up all the non-hallmarked stock.

Currently, there are only 30,000 jewellers out of an estimated 3 lakh jewellers in the country that have got a licensed approval from the Bureau of Indian Standards (BIS) to sell hallmarked jewellery. This year 2019, out of 1,000 tonnes of gold consumed in the country, about 450 tonnes was hallmarked. After the stringent governmental policy, the estimation predicted for the next year 2020 should increase the amount of certified gold jewellery sold in the country and decrease the amount of non-hallmarked gold jewellery to its minimum. The government has left no room for negotiation.

The gold jewelers will have to seek immediate measures to keep up with the ongoing change in the dynamics of gold jewelley in the Indian market. Jewellers will have to develop new strategies on how to get rid of their non-hallmarked gold jewellery.

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