Gold is driving the gems and jewellery export orders from India. According to the Investment Commission of India, exports are likely to grow to US$ 25 billion by 2012. Following are some of the India government steps to boost gold trade in the country.
India Government Initiatives
The Indian government has provided an impetus to the booming gems and jewellery industry with favourable foreign trade policies:
• 100 per cent foreign direct investment (FDI) in gems and jewellery through the automatic route is allowed
• The government has lowered import duty on platinum and has exempted rough coloured precious gem stones from customs duty
• Rough, semi-precious stones are also exempt from import duty
• Duty-free import of consumables for metals other than gold and platinum up to 2 per cent of freight on board (f.o.b) value of exports
• Duty-free import entitlement for rejected jewellery up to 2 per cent of f.o.b value of exports
• Import of gold of 18 carat and above under the replenishment scheme
• Setting up of SEZs and gems and jewellery parks to promote investment in the sector
• In May 2007, the government abolished import duty on polished diamonds
• The government has raised the limit value of jewellery parcels for export through foreign post office from US$ 50,000 to US$ 75,000 and the time period for re-import of branded jewellery remaining unsold has been extended from 180 days to 365 days
• The export of coloured gemstones on a consignment basis has been allowed. The government has announced a series of measures to help gems and jewellery exports in the Foreign Trade Policy 2009-14.
• It has been decided to neutralise duty incidence on gold jewellery exports, to allow duty drawback on such exports
• In an endeavour to make India an international diamond trading hub, it has been planned to establish "Diamond Bourses"
• A new facility to allow import of cut and polished diamonds on a consignment basis for the purpose of grading/certification purposes, has been introduced
• To promote export of gems and jewellery products, the value limits of personal carriage have been increased from US$ 2 million to US$ 5 million in case of participation in overseas exhibitions. The limit in case of personal carriage, as samples, for export promotion tours, has been increased from US$ 0.1 million to US$ 1 million.
The Road Ahead
• The Indian gems and jewellery sector is excepted to cross US$ 26 billion by 2012, driven by availability of a huge base of skilled labour and improving lifestyle, according to a new report called "Indian Gems and Jewellery Market - Future Prospects to 2011", by RNCOS, published in September 2009.
• According to the same report, the Indian gems and jewellery sector is expected to grow at a compound annual growth rate (CAGR) of around 14 per cent from 2009 to 2012.
• According to industry experts the consumption of diamond jewellery in India is expected to touch US$ 6.41 billion in 2012.
• State-run National Mining Development Corp (NMDC) plans to produce close to 100,000 carats of diamonds from the Panna diamond mines in Madhya Pradesh by 2010-11.
Wednesday, 31 March 2010
Sunday, 21 March 2010
How global warming can lead to increased violence in human beings
A new research has shown that as the earth's average temperature rises, so does human "heat" in the form of violent tendencies, which links global warming with increased violence in human beings.
Using US government data on average yearly temperatures and the number of violent crimes between 1950 and 2008, the researchers estimate that if the annual average temperature in the US increases by 4.4 degree Celsius, the yearly murder and assault rate will increase by 34 per 100,000 people - or 100,000 more per year in a population of 305 million.
While the global warming science has recently come under fire, the main premise behind the Iowa State researchers' research paper is irrefutable.
"It is very well researched and what I call the 'heat hypothesis'," Anderson said.
"When people get hot, they behave more aggressively. There's nothing new there and we're all finding the same thing. But of the three ways that global warming is going to increase aggression and violence, that's probably the one that's going to have the most direct impact - even on developed, wealthy countries, because they have warm regions too," he added.
The ISU researchers analyzed existing research - including an update on a study Anderson authored in 1997 - on the effects of rising temperature on aggression and risk factors for delinquency and criminal behavior.
In addition to the "heat hypothesis," they report that rising global temperatures also increases known risk factors for the development of aggression in violence-prone individuals, such as increasing poverty, growing up amid scarce resources, malnutrition and food insecurity.
They contended that one of the most catastrophic effects of climate change will be food availability, producing more violence-prone individuals in the process.
"While there is some link between temperature and aggression, really the effects (of climate change) are going to be more indirect if those temperature changes affect the amount of food we can produce, coupled with population growth," said Matt DeLisi, an associate professor of sociology and director of ISU's criminal justice program.
"Then where the real damage will be done is malnutrition, because that sets in motion these other developments (risk factors) that then lead to crime," he added.
The researchers cited ecomigration, civil unrest, genocide and war as the third way global warming is going to increase violence.
They report research finding that rapid climate change can lead to changes in the availability of food, water, shelter and other necessities of life.
Such shortages can also lead to civil war and unrest, migration to adjacent regions and conflict with people who already live in that region, and even to genocide and war. (ANI)
Saturday, 13 March 2010
Why gold is a commodity and a currency
1. Is gold trading as a commodity, a currency, or both?
2. I believe the answer is: Mainly as a currency, but the fact that aprox 70% of mined gold usually goes into jewellery cannot be ignored.
3. Another fact is that gold seasonals dictate a possible intermediate top in late December. This time it topped in early December.
4. The gold price has been “ruled” by the massive head and shoulders pattern on the weekly chart (Gold Weekly Chart), so the usual late sept/early oct hard sell off not occurring is most likely a function of the action of two factors: a. The hedge fund momentum buying, trying to milk the technical chart pattern. b. The action of Barrick acting in the comex open market buying futures contracts to cover off their hedge position.
5. Theme “numero uno” for me continues to be: Hold the amount of gold you can be comfortable with should price either decline to $700 or rise to $1400. If you bail on current holdings if gold moved towards $700 or started buying crazily as it rallied towards $1400, you likely are positioned very very badly, here and now. Your gold holdings become a crapshoot, rather than an ultra solid investment in the world’s lowest risk market.
6. If gold were to leap $50 in the next second, you should have an overall feeling of comfort regarding your core positioning, and the same should be true should it receive a $50 spanking. How you feel has a lot to do with how you act. Really work hard at getting your holdings into your “comfort zone”. You can then “let that gold flying fish” get away if price spurts suddenly, and if it tanks suddenly you don’t wonder about hitting the sell button. It takes more work and patience than many think to get to that “sweet spot” but it’s a CRITICAL task if you want to do not just well in the market, but have a balanced life.
7. Sammy the bull notes that many major mkts often make significant lows in the mid march timeframe. That’s only a week away from today’s date.
8. I would add that gold as I write this has dropped $30 from the recent highs at $1145, to $1115 this morning, the fact is that $30 of weakness must be bought.
9. How much to buy? If you look at what I term the Liquidity Flows reports, the COT reports, you will see that the banksters typically add in the range of 5000 contracts to an existing 150,000 contracts position. That equates to a 3% addition to their position. Sometimes, they add more into $30 of price weakness, sometimes less, but it isn’t a double of their position, and it isn’t none. They are responding to price calmly, rationally, and modestly.
10. If you look at how most investors operate in the market, they might buy a position in a stock at price A, then do a 2nd buy at lower price B, then maybe a 3rd but more uncomfortable buy at a lower price C. Now they are players in the market at 3 price points. Unless you are a professional trader, I’ll bet you spend 99% of your time at prices below 2 of your 3 price entry points, and most likely below all 3. Most investors don’t even use 3 buy points, they use just one!
11. The head and shoulders pattern on the gold weekly chart has been shown a zillion times in the gold community. The problem has been when it’s time to take action, few have.
12. The breakout upside was viewed as potentially false. That cost them $200 an ounce. Then came the “demands” for a pullback exactly to the neckline. What’s the difference between buying 1050 and 1020, or 980 for that matter? I don’t see any major difference.
13. Sadly, at 1045 the banksters went to work and gold investors put on a classic lemmings show, with their “the banksters say gold is a bubble, so it is, sell everything now!” clown act. And the banksters went on the buy.
14. Gold soared a hundred dollars an ounce from 1045. We’ve retraced about a third of that as of this morning. Once again, gold investors are losing their focus, losing sight of what is happening on the weekly gold chart, the chart that continues to literally rule gold’s price here and now.
15. Price has corrected in a clear parallel down channel and last week closed upside. If you look closely at the red supply line I’ve drawn in, you can see price could correct to anywhere around the 1100-1115 area and create a classic pullback from that breakout.
16. Aggressive options traders should consider using weakness over the next week to take action on gold with longside bets.
17. Seasonally, the upmove that occurs classically from the mid march area (but don’t bet big money that price must bottom in mid march, this is the market and anything and everything is possible) is followed by a significant but choppy upmove.
18. Price can then decline to a lower low or least a significant low.19. Again, given the fact that gold is being ruled technically by the head and shoulders weekly chart bull continuation pattern, price declines are likely to be reasonably shallow.
20. The technical indicators on both the gold bullion weekly chart and the gold stocks GDX weekly chart are showing the market attempting to make a bottom. The daily charts show a short term top. Here’s a look at the GDX. GDX Weekly
21. Notice in particular the short term 4,8,9 time series of MACD has given a buy signal. Usually, that is followed by the other series, including the 12,26, 9 flagship.
22. Looking at the daily chart GDX Daily Chart you can see the exact opposite picture in the technicals, with sell signals being generated on the lead MACD series.
23. What if price doesn’t stop after a shallow sell off, but instead blows back down into the parallel channel and starts taking out lows? After all, this is the gold market, and the charts, in the final analysis, are just lines in the sand drawn at whim by the banksters dangling the funds around on puppet strings to buy and sell to create the charts with their actions. Well, first off, we’re already more than blessed with how this massive head and shoulders has continued to play out in a picture-perfect action of price.
24. So if price were to do something “anti-pattern” that shouldn’t be taken out of context, so long as price has not violated the right shoulder low, which is at $860. Secondly, even if price did violate 860, I’m a gold buyer of that weakness. There is nothing I see in the current sell-off to indicate anything other than the usual over-leveraged fundsters on the bail at the hands of the banksters who I’ll give you 99.999% odds are on the buy today with their largest buys right into today’s lows. The question is, what are you doing in the gold market into today’s lows?
Courtesy: www.gracelandupdates.com
2. I believe the answer is: Mainly as a currency, but the fact that aprox 70% of mined gold usually goes into jewellery cannot be ignored.
3. Another fact is that gold seasonals dictate a possible intermediate top in late December. This time it topped in early December.
4. The gold price has been “ruled” by the massive head and shoulders pattern on the weekly chart (Gold Weekly Chart), so the usual late sept/early oct hard sell off not occurring is most likely a function of the action of two factors: a. The hedge fund momentum buying, trying to milk the technical chart pattern. b. The action of Barrick acting in the comex open market buying futures contracts to cover off their hedge position.
5. Theme “numero uno” for me continues to be: Hold the amount of gold you can be comfortable with should price either decline to $700 or rise to $1400. If you bail on current holdings if gold moved towards $700 or started buying crazily as it rallied towards $1400, you likely are positioned very very badly, here and now. Your gold holdings become a crapshoot, rather than an ultra solid investment in the world’s lowest risk market.
6. If gold were to leap $50 in the next second, you should have an overall feeling of comfort regarding your core positioning, and the same should be true should it receive a $50 spanking. How you feel has a lot to do with how you act. Really work hard at getting your holdings into your “comfort zone”. You can then “let that gold flying fish” get away if price spurts suddenly, and if it tanks suddenly you don’t wonder about hitting the sell button. It takes more work and patience than many think to get to that “sweet spot” but it’s a CRITICAL task if you want to do not just well in the market, but have a balanced life.
7. Sammy the bull notes that many major mkts often make significant lows in the mid march timeframe. That’s only a week away from today’s date.
8. I would add that gold as I write this has dropped $30 from the recent highs at $1145, to $1115 this morning, the fact is that $30 of weakness must be bought.
9. How much to buy? If you look at what I term the Liquidity Flows reports, the COT reports, you will see that the banksters typically add in the range of 5000 contracts to an existing 150,000 contracts position. That equates to a 3% addition to their position. Sometimes, they add more into $30 of price weakness, sometimes less, but it isn’t a double of their position, and it isn’t none. They are responding to price calmly, rationally, and modestly.
10. If you look at how most investors operate in the market, they might buy a position in a stock at price A, then do a 2nd buy at lower price B, then maybe a 3rd but more uncomfortable buy at a lower price C. Now they are players in the market at 3 price points. Unless you are a professional trader, I’ll bet you spend 99% of your time at prices below 2 of your 3 price entry points, and most likely below all 3. Most investors don’t even use 3 buy points, they use just one!
11. The head and shoulders pattern on the gold weekly chart has been shown a zillion times in the gold community. The problem has been when it’s time to take action, few have.
12. The breakout upside was viewed as potentially false. That cost them $200 an ounce. Then came the “demands” for a pullback exactly to the neckline. What’s the difference between buying 1050 and 1020, or 980 for that matter? I don’t see any major difference.
13. Sadly, at 1045 the banksters went to work and gold investors put on a classic lemmings show, with their “the banksters say gold is a bubble, so it is, sell everything now!” clown act. And the banksters went on the buy.
14. Gold soared a hundred dollars an ounce from 1045. We’ve retraced about a third of that as of this morning. Once again, gold investors are losing their focus, losing sight of what is happening on the weekly gold chart, the chart that continues to literally rule gold’s price here and now.
15. Price has corrected in a clear parallel down channel and last week closed upside. If you look closely at the red supply line I’ve drawn in, you can see price could correct to anywhere around the 1100-1115 area and create a classic pullback from that breakout.
16. Aggressive options traders should consider using weakness over the next week to take action on gold with longside bets.
17. Seasonally, the upmove that occurs classically from the mid march area (but don’t bet big money that price must bottom in mid march, this is the market and anything and everything is possible) is followed by a significant but choppy upmove.
18. Price can then decline to a lower low or least a significant low.19. Again, given the fact that gold is being ruled technically by the head and shoulders weekly chart bull continuation pattern, price declines are likely to be reasonably shallow.
20. The technical indicators on both the gold bullion weekly chart and the gold stocks GDX weekly chart are showing the market attempting to make a bottom. The daily charts show a short term top. Here’s a look at the GDX. GDX Weekly
21. Notice in particular the short term 4,8,9 time series of MACD has given a buy signal. Usually, that is followed by the other series, including the 12,26, 9 flagship.
22. Looking at the daily chart GDX Daily Chart you can see the exact opposite picture in the technicals, with sell signals being generated on the lead MACD series.
23. What if price doesn’t stop after a shallow sell off, but instead blows back down into the parallel channel and starts taking out lows? After all, this is the gold market, and the charts, in the final analysis, are just lines in the sand drawn at whim by the banksters dangling the funds around on puppet strings to buy and sell to create the charts with their actions. Well, first off, we’re already more than blessed with how this massive head and shoulders has continued to play out in a picture-perfect action of price.
24. So if price were to do something “anti-pattern” that shouldn’t be taken out of context, so long as price has not violated the right shoulder low, which is at $860. Secondly, even if price did violate 860, I’m a gold buyer of that weakness. There is nothing I see in the current sell-off to indicate anything other than the usual over-leveraged fundsters on the bail at the hands of the banksters who I’ll give you 99.999% odds are on the buy today with their largest buys right into today’s lows. The question is, what are you doing in the gold market into today’s lows?
Courtesy: www.gracelandupdates.com
Bio-fuels: Road not taken!
Even as the ministry of new and renewable energy (MNRE) has set its eyes to develop coordinated R&D projects for second generation bio-fuels, the ground reality of the nascent industry of bio-fuel suggests that more of the encouragement for private investment is required in order to meet the desired goals of creating alternative energy sources.
In a recent statement, the union minister for new and renewable energy, Dr. Farooq Abdullah had mentioned that the government has initiated steps to expedite promotion and development of bio-fuels such as bio-ethanol and bio-diesel.
The government is said to be considering a regulation which would make it mandatory for all oil companies to sell diesel with 20% blend of bio-diesel for retail market by the year 2017. But looking at the pace of development on the R&D and investment front, only a marginal part of the fixed percentage seems to be achievable. The blame goes to sluggish approach of the government to attract required investments for projects.
“Our diesel demand is growing rapidly and considering this exponential growth in demand over the years, there will be a need of about 16 million metric tonnes of bio-diesel in 2017 to meet the prescribed regulation of 20% blending with normal diesel. But looking at the current scenario of investments happening in the industry, it would be very difficult to meet the set targets,” said CS Jadhav, Director, Marketing Nandan Bio-Matrix Ltd – a company that is currently operating into bio-diesel manufacturing from Jatropha cultivation. “Looking at the current pace of capacity generation, it seems that we would hardly be able to meet the blending requirements of even 3.5%,” told Jadhav in an interaction with Commodity Online.
Nandan Bio-Matrix is one of its kind cases in India, who has a vertically integrated value chain. The company operates through seed to oil integration. The company has tied-up with the Bharat Petroleum Corporation Ltd (BPCL) for bio-diesel refining and marketing in Uttar Pradesh. The project is believed to start yielding output in next 1-2 years.
The company has joined hands with Gujarat-based group to set up a joint venture entity, Vitale Nandan, which operates in Rajasthan and Orissa besides its home state, Gujarat. “Gujarat has been on the forefront for giving land for jatropha cultivation. We are planning to set up plantation on about 20,000 hectares of land. But initially we will start off with about 4,000- 5,000 hectares of land,” said Rituraj Pathak, director of the company. The company has already procured the land and will soon start commercial cultivation on it.
“We have successfully completed our field trials, which was done in association with Dantiwada Agriculture University in Gujarat. Now we are looking to expand our plantation in states like Rajasthan and Orissa. We are expecting bio-diesel production of about 2,000-5,000 gallons in next 3-5 years, with our revenues rising ten folds during this time.” Pathak mentioned.
Industry experts have expressed their apprehensions about the success of government initiatives to address the need of the growing industry. On one hand, it has set target of 2017 and on the other presently, there are only a few organized players to cater to the vast market in India.
The Minister’s statement to develop coordinated R&D projects on second generation bio-fuels such as production of ethanol from agricultural wastes / residues and bio-diesel from algae, barely mentions the directions for investors. He said in the Lok Sabha, “The National Policy on Bio-fuels is aimed at accelerated promotion and development of bio-fuels such as bio-ethanol and bio-diesel.”
The oil marketing companies (OMCs) have been directed to sell five per cent ethanol blended petrol in the entire country except North-Eastern States, Jammu & Kasmir, Andaman & Nicobar Islands and Lakshdweep. However, Bio-diesel is currently not being marketed commercially for blending with diesel as the bio-diesel industry is still at nascent stage of development. Hence, the government is emphasizing more on extensive R&D through different Scientific Agencies on feedstock development, conversion processes and production of ethanol mainly from sugarcane molasses and bio-diesel from Jatropha.
Experts are of the opinion that right mix of policy backed by incentives, will prove a booster for the industry. Many private equity firms are waiting to offload funds for the future blue-chip ventures. Tatas and Reliance have already expressed their readiness to park their funds in this promising sector. Australian renewable energy major, Mission Biofuels Ltd is also considering venturing into this field.
Courtesy :
Vora is a Special Correspondent, Commodity Online News Service
In a recent statement, the union minister for new and renewable energy, Dr. Farooq Abdullah had mentioned that the government has initiated steps to expedite promotion and development of bio-fuels such as bio-ethanol and bio-diesel.
The government is said to be considering a regulation which would make it mandatory for all oil companies to sell diesel with 20% blend of bio-diesel for retail market by the year 2017. But looking at the pace of development on the R&D and investment front, only a marginal part of the fixed percentage seems to be achievable. The blame goes to sluggish approach of the government to attract required investments for projects.
“Our diesel demand is growing rapidly and considering this exponential growth in demand over the years, there will be a need of about 16 million metric tonnes of bio-diesel in 2017 to meet the prescribed regulation of 20% blending with normal diesel. But looking at the current scenario of investments happening in the industry, it would be very difficult to meet the set targets,” said CS Jadhav, Director, Marketing Nandan Bio-Matrix Ltd – a company that is currently operating into bio-diesel manufacturing from Jatropha cultivation. “Looking at the current pace of capacity generation, it seems that we would hardly be able to meet the blending requirements of even 3.5%,” told Jadhav in an interaction with Commodity Online.
Nandan Bio-Matrix is one of its kind cases in India, who has a vertically integrated value chain. The company operates through seed to oil integration. The company has tied-up with the Bharat Petroleum Corporation Ltd (BPCL) for bio-diesel refining and marketing in Uttar Pradesh. The project is believed to start yielding output in next 1-2 years.
The company has joined hands with Gujarat-based group to set up a joint venture entity, Vitale Nandan, which operates in Rajasthan and Orissa besides its home state, Gujarat. “Gujarat has been on the forefront for giving land for jatropha cultivation. We are planning to set up plantation on about 20,000 hectares of land. But initially we will start off with about 4,000- 5,000 hectares of land,” said Rituraj Pathak, director of the company. The company has already procured the land and will soon start commercial cultivation on it.
“We have successfully completed our field trials, which was done in association with Dantiwada Agriculture University in Gujarat. Now we are looking to expand our plantation in states like Rajasthan and Orissa. We are expecting bio-diesel production of about 2,000-5,000 gallons in next 3-5 years, with our revenues rising ten folds during this time.” Pathak mentioned.
Industry experts have expressed their apprehensions about the success of government initiatives to address the need of the growing industry. On one hand, it has set target of 2017 and on the other presently, there are only a few organized players to cater to the vast market in India.
The Minister’s statement to develop coordinated R&D projects on second generation bio-fuels such as production of ethanol from agricultural wastes / residues and bio-diesel from algae, barely mentions the directions for investors. He said in the Lok Sabha, “The National Policy on Bio-fuels is aimed at accelerated promotion and development of bio-fuels such as bio-ethanol and bio-diesel.”
The oil marketing companies (OMCs) have been directed to sell five per cent ethanol blended petrol in the entire country except North-Eastern States, Jammu & Kasmir, Andaman & Nicobar Islands and Lakshdweep. However, Bio-diesel is currently not being marketed commercially for blending with diesel as the bio-diesel industry is still at nascent stage of development. Hence, the government is emphasizing more on extensive R&D through different Scientific Agencies on feedstock development, conversion processes and production of ethanol mainly from sugarcane molasses and bio-diesel from Jatropha.
Experts are of the opinion that right mix of policy backed by incentives, will prove a booster for the industry. Many private equity firms are waiting to offload funds for the future blue-chip ventures. Tatas and Reliance have already expressed their readiness to park their funds in this promising sector. Australian renewable energy major, Mission Biofuels Ltd is also considering venturing into this field.
Courtesy :
Vora is a Special Correspondent, Commodity Online News Service
Subscribe to:
Posts (Atom)
