Reuters

[REuters] NewS: Industry Secy : India considering raising foreign direct investment in single brand retail to 100% from 51%

Chinese, Indian Gold Demand Driven By Rising Wealth, Savings Mentality

Montreal-- (Kitco News) -- A cultural affinity for gold coupled with expanding economies and individual wealth are likely to mean continued strong demand for the metal in the key nations of India and China for years to come, speakers told the London Bullion Market Association Tuesday.
One session was titled, “China & India—the Evolution of Golden Giants.”
The citizens of both nations are only enjoying higher incomes that mean greater consumer spending, including luxury items, the speakers told the LBMA annual conference in Montreal. Further, they have a natural propensity toward saving, particularly without a retirement program such Social Security in the U.S.
In fact, the Chinese save 38% of their disposable income, while the people of India save 29%, according to one graphic shown to the audience. The U.S. rate was listed as 3.2%.
As the Chinese build their savings, they are faced with low interest rates at banks, a stock market not performing well and limitations on real estate and foreign investments, the audience was told.
“Where else can they turn to?” asked Albert Cheng, managing director, Far East, for the World Gold Council. “We saw in the last year, they put some of it in gold.”
Wai-Chan Chan, director and partner in the Greater China office of the global strategy consulting firm OC&C, described a rapid urbanization and “remarkable” economic growth in China. The country recently became the second-largest economy in the world.
“Fifteen years ago, rush hour was bicycles. No one had a car. Look at it now,” he said, showing a slide with bumper-to-bumper traffic.
For the 20-year period beginning in 1990, per-capita spending grew at a rate of 11% a year, he said. By contrast, the growth was 4% in the U.S. and U.K. and 3% in Germany and France. In particular, the so-called “luxury” market has “exploded” in China, he said.
“Chinese consumers are spending more on gold jewelry, due to higher willingness to spend, better product offering and (the) investment function of gold,” he said.
India has an ingrained cultural affinity for gold, further helped by macroeconomic factors, said Rujan Panjwani, president of Edelweiss Financial Services.
He cited estimates that Indian households have hoarded an estimated 20,000 metric tons in the form of ornaments. Gold ornaments account for some 10% to 15% of the cost of an average Indian wedding, he said. And, he added, there is a likelihood of 125 million to 150 million weddings in the next decade.
Further, he said, the lack of Social Security and scarcity of insurance or pensions has also made India a nation of savers. Yet, the country of more than 1.2 billion people has only 350 million bank accounts.
“Where do you save? Cash under your mattress? No,” he said, then offering one of the answers: “Gold.”
An estimated 7% of India’s $256 billion in total household savings is currently held in gold, he said, citing the McKinsey Report. In 2010 alone, Indians bought 963 metric tons of gold worth an estimated $38 billion.
Like China, India has a rapidly growing economy. Gross domestic product is headed to an estimated $2 trillion for 2011 from $473 billion in 2001, and is expected to be $4.5 trillion by 2021.
Source : kitco news

Gold Margin hike

PRECIOUS-Gold eases from record high after CME margin hike

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Gold trend for next week

Weaker Prices Expected For Gold Next Week – Kitco News Survey

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Market Nuggets: Silver Institute: Photovoltaic Demand For Silver Could Double By 2015

Silver will continue to be used for solar energy, with the amount of metal used in photovoltaics potentially doubling to 100 million ounces by 2015 from 50 million last year, says the Silver Institute.  Photovoltaics made from silicon are often coated with a thin film of silver to maximize light absorption and capture active components, says the Institute. “Silver, because it has the highest efficiency as a conductor of both electrical and heat energy, is also the major component of circuitry elements that transfer the energy to storage reservoirs or to devices making direct use of the photovoltaic-produced energy,” says the Silver Institute. “Silver is used in paste at the contact points of cells in the photovoltaic arrays. These arrays are then mounted on a substrate, and from these contact points, silver wires and inks provide the most efficient transfer network to the ultimate destination.” The Silver Institute is an international association of miners, refiners, fabricators and wholesalers of silver and silver products.

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The Hindu : Business / Economy : ‘Rupee could depreciate by 20 per cent in two years’

The Indian Rupee may depreciate by around 20 per cent during next two years on account of dip in confidence about the domestic economy leading to outflow of funds.

The Hindu : Business / Economy : ‘Rupee could depreciate by 20 per cent in two years’

Jesse Lauriston Livermore "Great Bear of Wall Street"

"Wall Street never changes, the pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes."  ---Jesse Livermore

Jesse Lauriston Livermore (July 26, 1877 — November 28, 1940), also known as the Boy Plunger[1] and "Great Bear of Wall Street", was an early 20th century stock trader. He was famed for making and losing several multi-million dollar fortunes and short selling during the stock market crashes in 1907 and 1929.

Wall Street

While working, he would write down certain hunches he had about future market prices, which he would check for accuracy later. A friend convinced him to put his first actual money on the market by making a bet at a bucket shop, a type of gambling establishment that took bets on stock prices but did not actually buy or sell the stock.[4]

By the age of fifteen, he had earned profits of over $1,000 (which equates to about $20,000 today[5]). In the next several years, he continued betting at the bucket shops. He was eventually banned from most bucket shops for winning too much money from them. He then moved to New York City and devoted his energies towards trading in legitimate markets. This change would lead him to devise a new set of rules to trade the market.

During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly.

Livermore sometimes did not follow his own rules strictly. He claimed that his lack of adherence to his own rules was the main reason for his losses after making his 1907 and 1929 fortunes.

Source Wikipedia

Silver Markets Manipulated? Or, Hunt Brothers, Where Are You Now?

A commodities trading insider thinks silver markets are being illegally manipulated by politically connected powerful traders, with the collusion of the Federal Reserve; theNew York Times takes the story somewhat seriously.

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Fiscal Year (international)

We know our financial year in INDIA April to March but in world wide what be the fiscal year.
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Outlook for Ashok leyland

Accumulate Ashok leyland at 60 levels for the target above 75.
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Disclaimer:  Iffuture advises users to check with experts before taking any investment decisions.

LBMA forecast 2011

The London Bullion Market Association will publish Forecast 2011 on its website in mid-January. In the meantime, here is summary of what the report says:

"A total of 24 contributors have given us their estimates for the high, low and average price for 2011 for gold, silver, platinum and palladium, based on the London fixings, with a brief commentary on the major influences and activity for each metal covered.

"In 2011, Forecast contributors predict rises for all precious metals for the second year in a row. Their average gold forecast is US$1,457, a 19.0% increase on the 2010 average price, similar to the forecast of $1,450 made by delegates at the 2010 LBMA Precious Metals Conference in Berlin last September. Analysts predict that the average silver price will be $29.88, a 48.0% rise on the 2010 average price.

The LBMA said 2010 was a very good year for its forecasters. Their average gold price prediction of $1,199, a 23.4% increase on the 2009 price, was just $26 lower than the actual average price of $1,225. All metals rose as predicted, although silver and palladium exceeded almost everyone’s expectations.

Tables summarising the results of Forecast 2011 are available here