25 June 2012

World Gold Council video about gold video 1

CBS News – 60 Minutes: India's love affair with gold. Ajay Mitra, MD, Middle East and India, is interviewed.

Care for your gold jewellery

Despite its flexibility, gold is also renowned for its indestructibility. With its unique resistance to the ravages of time, given the proper care gold will retain its beauty and colour for generations to come.

Here are three simple but important tips for looking after your gold jewellery.


Experts recommend cleaning your gold jewellery regularly.

For best results, use a soft cleaning cloth, chamois leather or synthetic chamois – together with a good cleaning liquid.

Apply the liquid to the cleaning cloth and dab generously onto the jewellery. Polish the metal in a gentle, circular motion, making sure to cover the entire surface of the gold.

Next, using a dry area of the cloth, polish the newly cleaned gold, again using a circular motion. This will remove any excess cleaning fluid, and give your jewellery a deep, clear shine.

Follow these easy guidelines and you can maintain the lustre of your gold jewellery indefinitely.

Alternatively, you can visit a reliable jeweller and have your jewellery professionally cleaned. This may seem like an extravagance but many reputable jewellers will offer this as a free service to trusted clients. Even if not, we all spend considerable sums cleaning and caring for things that mean a lot less.


Individual pieces of gold jewellery can scratch and wear if they are not respected. It is therefore advisable that you store your gold jewellery with care.

The best place to store gold jewellery is in a lined box. Keep individual items separate inside the box, ensuring that they cannot touch each other; as an additional safeguard, wrap smaller items individually in tissue paper before placing them in your box.

Be careful not to place multiple pieces of gold jewellery in pouches. Such storage can lead to minor damage if separate pieces make contact, especially if the piece is studded with diamonds or other hard gemstones.

Every effort you make to care for your gold will pay dividends in terms of maintaining its beauty and longevity.


It sounds obvious but it is really important to insure your gold jewellery, as this allows you to recover the full value of a piece should it ever be misplaced or stolen; most people are unaware of the true replacement value of a treasure which has been in the family for generations. A photograph of your jewellery will help trace an item should you ever lose it.

source: http://www.gold.org/jewellery/about_gold_jewellery/care/

Ansaa Jewellery

Anand Shah 

With no formal training, but a passion for design, Anand Shah founded Ansaa Jewellery, in Mumbai, India, in 1997, with the simple aim of creating exemplary hand-crafted 22 carat gold jewellery. Together with his business partner, K. P Shah, in charge of marketing, Anand Shah broke through established conventions to come up with a new and contemporary style, harnessing traditional Indian craftsmanship, sometimes incorporating oil painting, carved gems, wood; over the years Shah has trained some 225 craftsmen. Ansaa Jewellery has won numerous awards, and is collected by connoisseurs and celebrities in India and around the world. “Gold to me is 'Peace of mind'. As an Artist, the malleability of gold allows me to re-form it into whatever my creativity desires, satisfying my visual dreams, bringing endless possibilities. Peace of Mind. As an Owner, gold has an indisputable value, delivering an immense sense of security and confidence. Peace of mind. Irreplaceable by any other feeling life can offer.”

source: http://www.gold.org/jewellery/about_gold_jewellery/great-designers/archive/anand_shah/

Women drive Indian gold consumption

Rapid growth in the economies of India and China has been accompanied by an equally rapid increase in demand for gold jewellery in those countries. Today, India is the world’s largest market for gold jewellery, representing about 746 tonnes of gold in 2010; an increase in volume year on year of 39.5%. This reflects both the increased wealth of the country and the huge cultural and social significance of gold among Indians, and particularly Indian women.
Indian women are estimated to hold about 18,000 tonnes of gold in jewellery form. When contrasted with the 8,600 tonnes estimated to be in the US national gold reserve, this illustrates both the scale of the demand for gold jewellery in India and the massive purchasing power of Indian women. It also signifies the cultural significance of gold in India, where it plays an important role at weddings and other celebrations.
China is the fastest-growing market for gold jewellery in the world; it grew 20.5% in volume in 2010, accounting for 400 tonnes of demand. More than 80% of gold jewellery in China is made from pure 24 carat gold.

source: http://www.goldfacts.org/en/supply_chain/retailing/ 

14 June 2012

Amrapali Jewels

‘Old is gold’ best describes the mantra for success of the Indian fashion jewellery house, Amrapali. Rajiv Arora, who founded the company with friend Rajesh Ajmera in 1978, said, “When we started Amrapali, we were only selling antique Indian jewellery pieces that we had collected from rural parts of the country. But when the demand for such ethnic jewellery soared, we started replicating them.” There has been no looking back for the Jaipur-based jewellery house since.
The designer duo was in Hyderabad recently to unveil one of the world’s most expensive miniature statuette of Hanuman from their Divine Heritage collection. The statue was designed over two years using 18-carat gold and precious stones. The figurine bows and rips open its chest to reveal glowing images of Ram-Sita on its heart on pressing Hanuman’s feet.
American sculptor Lawrence Leyda was roped in to execute this Rajiv-Rajesh design. “In India, we don’t have the technology or know-how to do this. So, we commissioned him. But now that we have the apparatus and moulds in place, it will be easier to manufacture copies,” the said.
The duo wanted to use technology in making their statues, so they came up with this design. Rajiv said they are planning on more figurines of gods using this technology.

Amrapali’s pieces have been seen on Hollywood actresses such as Angelina Jolie, Sandra Bullock, Penelope Cruz and Jennifer Lopez and Bollywood divas including Rekha, Madhuri Dixit, Deepika Padukone, Pooja Bhatt and Kiron Kher. They have also designed jewellery for the Brad Pitt-starrer Troy and showcased their creations at international fashion weeks and stores like Harrod’s.
The duo feels that Indian jewellery’s aesthetics and motifs are simple yet so futuristic so they never go out of fashion. “Their beauty and craftsmanship is time-tested,” they said.

A jewelled wonder: This miniature Hanuman statuette sculpted by Lawrence Leyda boasts of 18-carat gold and precious stones and is priced at Rs 65 lakh


Amrapali is one of India’s leading contemporary fine jewellers, known around the world for luxurious modern interpretations of classic Indian jewellery. The company was started in Jaipur in 1978 by two young history graduates, Rajesh Ajmera and Rajiv Arora. Today they employ over 1000 artisans and are joined in the business by Rajiv’s son, designer Tarang Arora.
“Founded on a passion for ancient history and a desire to revive long-lost Indian jewellery designs the company is dedicated to tradition, to the rich heritage of Indian jewellery which has a design language all its own. Even our name, Amrapali, is the name of a famous and beautiful courtesan who lived in the time of The Buddha." 

SOURCE: www.amrapalijewels.com
and wordgoldcouncil website 

India Dazzles JCK Show at Las Vegas

“The Vegas 2012 show is yet another milestone for the Indian gems and jewelry industry as the organizers and the Ministry of Commerce and Industry declared the JCK Las Vegas 2012 as the India show,” said Rajiv Jain, GJEPC’s chairman. “The India gallery was a major attraction and a prestigious honor accorded only to the Indian contingent reinstating India's position as the design destination for the world.”

Jain added that India gallery at JCK showcased exemplary work by Indian designers and brands, that are not just unique but one of its kind globally. The cultural acts by ICCR, Indian Cuisines, promotions across the show by Ministry of Tourism and GJEPC was an effort to build an aura of India and establish Identity for the Brand India, as it is the most sought after destination today.
The U.S. jewelry industry's most  comprehensive gathering that took place from June 1 to 4, 2012 at Mandalay Bay Hotel & Conventional Center, Las Vegas, Nevada, reinstated India's position as the jewelry design destination in the world. The four day global trade event offered a superior experience for business and networking, with more than  3,100 exhibitors, 21,000 visitors and 22 country pavilions participating from across the country.
The exhibition was inaugurated by Indian Ambassador to the U.S., H.E. Nirupama Rao, and graced by noted Indian actress and brand ambassador of the Gem & Jewellery Export Promotion Council (GJEPC), Sonam Kapoor, who  dazzled attendees with Indian designs. 
 This was specially inaugurated by the  Rao and Kapoor .  along with Jain. These pieces were handpicked by the GJEPC, which invited the finest and leading manufacturers and retailers dealing in designer jewelry to display their products. The showcase was in the categories of mass produced, couture, designer and further that of gold and silver.
Key features and highlights at the JCK Vegas 2012 show were:

•A grand inauguration: GJEPC’s Jain, along with ministry officials, and Rao, inaugurated the show with Reed officials. An Indian cultural dance performance by some of the finest dancers followed the inauguration.

• India Evening: Hosted on the first day, at Mandalay Bay, the participants witnessed a spectacular show by world renowned Kathak dance artist, Pandit Chitresh Das Company, with ICCR presenting a cultural act along with an exclusive jewelry fashion show. The showstopper for the evening was the beautiful Indian actress and GJEPC's international brand ambassador Kapoor.

• Daily Jewelry Fashion Show: Showcase of Indian designs - daily half  hour display of Indian jewelry designs by models in the Runway CafĂ© at Shorelines.

• Indian Cuisine: Chefs from TAJ, Mumbai were flown down to Vegas to design a ‘Special India Evening’ menu and serve scrumptious delicacies to the invitees.

• Every Day Cultural Act: GJEPC brought a glimpse of Incredible India through cultural performances from Gujarat state. Gujarat popularly known for its ethnicity and vibrancy showcased varied kind of cultural pieces.

The India Pavilion located at Bayside Level of Mandalay Bay covered an absolute wide array of fine jewelry products ranging from platinum to gold, diamonds, watches, designer jewelry, antique and estate, bridal jewelry, colored gemstones, loose diamonds, jewelry services, very high end giftware and pearls and was visited by jewelry manufacturers, importers, traders and retailers.

It featured a variety of regionally inspired and product specific pavilions. India Pavilion by GJEPC has been a participant at JCK Las Vegas since 2004 and Indian contingent has grown manifolds since then with 65 leading Indian exporters participating in JCK  2012 show, with work that represent a flawless blend of superior international quality and workmanship utilizing Indian talent and design in jewelry making.

With rigorous effort made by the government of India and the council, the Indian gem and jewelry export, currently at around $46 billion, is expected to record an annual growth of 13 percent. India today, is poised to take over the world, with its vigor, vibrancy and dynamism. 
About GJEPC: The Gem & Jewellery Export Promotion Council is an all - India apex body for gem and jewelry industry, representing 5,300 members. Set up in 1966, it operates under the supervision of the Ministry of Commerce & Industry, Government of India. More info on: www.gjepc.org

Souce:  RAPAPORT http://www.diamonds.net/news/NewsItem.aspx?ArticleID=40357

13 June 2012

Some gold jewellery making Video

Handmade Jewellery Making Design Pendant Temprell

Hand Engraving Video

11 June 2012

Maharaja: The Splendour of India's Royal Courts

the must-see show this autumn at the Victoria & Albert Museum where 200 years of royal Indian culture and history is on display

07 June 2012

Hyderabad jewellery fair from June 22

The fifth edition of Hyderabad Jewellery, Pearl and Gem Fair will be organised here during June 22-24, 2012.
``We are expecting significant business to transact in this business –to- business exhibition as south India in general and Andhra Pradesh is a big market for jewellery,’’ Ms Kranti Nagvekar, Group Director, UBM India, organiser of the event told newspersons here on Wednesday.
The four southern states account for 45 per cent about 900 tonnes of gold jewellery sale per annum in the country, she added.
The three-day event would feature over 125 exhibitors from India and abroad showcasing a range of products such as gems, studded jewellery, machinery and lab companies, pearls, diamond jewellery and traditional told jewellery.
About 4,000 visitors were expected to visit the fair which will be held at the HITEX exhibition centre at Madhapur here, Mr Nagvekar said.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/marketing/article3496846.ece 

06 June 2012

Sought after since the beginning of recorded history, gold remains a highly valued metal, reaching record highs recently, climbing over 135% in value in the past year alone. The recent rise in the price of gold comes just as annual worldwide mine production has decreased - down by nearly 8% since 2001. In human history, only 161,000 tons of gold have been mined - more than half of that extracted in just the past 50 years. Collected here are a handful of recent photographs of people searching for, mining, rediscovering, celebrating, buying and selling gold.

A visitor touches the world's largest solid gold brick weighing 220kg (worth over US $7.8 million at today's price), at the Jinguashi Gold Museum in Ruifang, Taipei county, on December 2, 2009.

Hava Katz, the head of the national treasures of Israel's Antiquities Authority, holds up a 1,000-year-old gold coin minted in Egypt and dated 1,095 AD, supposedly brought to Jerusalem by Muslim pilgrims, during an exhibition at the Davidson Archeological center in Jerusalem's Old city on November 11, 2009.

A statue of a bird of prey made of gold is pictured at a gold and silver exhibition at the Ginza Tanaka store in Tokyo October 23, 2009.

An artisan makes gold ornaments at a jewelery factory in the eastern Indian city of Kolkata November 13, 2009.

A man holds a spoon full of gold leaf, ready to eat it with his sushi at the "Seven Sushi Samurai" Sushi of the Year awards 2009 at the Olympia exhibition center in west London, on November 14, 2009. The gold leaf was an ingredient in last year's winner Mitsunori Kusakabe's entry.

Children from the Turkana area of Kanukurdio pan for flakes of gold which helps sustain their families on November 9, 2009 near Lodwar, Kenya.

Trays with gold ingots are placed in a room for final weighing and packaging at the Krastsvetmet plant in the Siberian city of Krasnoyarsk November 16, 2009.

A pure gold statue of Buddha is displayed at the Ginza Tanaka store in Tokyo November 26, 2009.

Pedro Linares uses a calculator to determine how much the company he works for, Fast Cash Gold Parties, will pay for the gold jewelry that he is weighing on October 30, 2009 in Hialeah, Florida. As the price of gold remains high, the company is busy setting up these modern day Tupperware parties to buy people's unwanted gold in their homes.

Gold figurines on display in a shop window in Hong Kong on November 17, 2009.

Colombian gold prospectors mine for the precious metal on the river Dagau, Zaragoza province, Cauca, Colombia on November 17, 2009. About 8,000 gold prospectors work illegally on the Dagua river to support their families, local authorities said.

A gold trader weighs gold in Cauca, Colombia on November 17, 2009.

Metal detector enthusiast David Booth poses with his hoard of Iron Age Gold on November 4, 2009 in Edinburgh, Scotland. Booth discovered the gold Iron Age torcs buried on on private land in Stirlingshire - the items dating from between 300-100 BC. The hoard is currently under protection of the Treasure Trove Unit, under Scottish law, the Crown can claim any archaeological objects found in Scotland.

Gold-toothed football player Chris Johnson of the Tennessee Titans sits on the bench during their game against the San Francisco 49ers at Candlestick Park on November 8, 2009 in San Francisco, California.

A gold miner pushes a wheelbarrow to carry rocks which will be processed for gold in an artisanal mine in Abangares, north of San Jose, Costa Rica on December 9, 2009. Costa Rica is pushing to legalize a 600 informal miners of small-scale miners who scrape out tiny amounts of gold from abandoned mine shafts using dangerous and polluting techniques.

People work in an illegal gold mine in a national park forest near Novo Progresso in Brazil's northern state of Paral on September 15, 2009..

A Christie's employee looks at a creation "Relief Eponge" by Yves Klein on display at the auction house in London, Wednesday, Jan. 20, 2010.. The gold sponge relief creation is to be auctioned at the "Post-war and Contemporary" sale on Feb. 11 with an estimated price of 5.7 to 8 million euros (US $8.2 to 11.4 million).

A model displays pure gold Disney character dolls showing Snow White and the seven dwarfs, priced at 30 million yen ($300,000 USD) and produced by Tanaka Kikinzoku Jewelry in Tokyo on November 4, 2009 for the promotion of Blu-ray disks of Disney movies.

A Caterpillar Inc. mining truck moves along a road at the AngloGold Ashanti Ltd. Cripple Creek Victor gold mine in Victor/Cripple Creek, Colorado, on Thursday, Nov. 5, 2009. AngloGold Ashanti Ltd., Africa's largest gold producer, purchased Golden Cycle Gold Corp. in January 2008 to gain full control of this mining site, its only active operation in the U.S..

Sharon Brumley pours fusion samples into cone molds to determine the total gold content in a sample at the AngloGold Ashanti Ltd. Cripple Creek Victor gold mine in Colorado on Thursday, Nov. 5, 2009.

A carbon recovery circuit adsorbs gold in a sodium cyanide solution at the AngloGold Ashanti Ltd. Cripple Creek Victor gold mine in Colorado on Thursday, Nov. 5, 2009.

Gold-plated Berlin Bear awards are lined up for the upcoming Berlinale International Film Festival at Noak bronze foundry in Berlin January 20, 2010.

A worker holds a geological core sample containing copper and gold to visitors at the Oyu Tolgoi mine site in Khanbogd village, Umnugobi province, Mongolia on Saturday Nov. 7, 2009. Mongolia is trying to capitalize on its vast mineral wealth to help the country lift itself out of poverty.

A woman wades deep under a river bank to collect mud to pan for gold in Pidie district in Indonesia's Aceh province November 2, 2009. Residents in the area engaged in traditional gold mining can get about 1.5-2 grams of gold and earn 275,000 rupiah ($28) per day.

A villager looks for gold dust from sand along a river at Pidie district, Indonesia's Aceh province November 2, 2009.

Bulgarian archaeologist Veselin Ignatov holds a gold-plated silver cup with an image of the Greek God of love Eros, found at a Thracian mound near the village of Karanovo, Bulgaria on November 17, 2009. A team of archaeologists led by Ignatov found a chariot, two silver cups, golden rings and jewelry, clay and glass artifacts dating back to the first century A.D..

Illegal miners search for gold on the mountain of Tumpang Pitu in Banyuwangi, East Java, Indonesia on November 21, 2009. The mine has been in operation since June 2009 and local villagers have began protesting because the waste produced by the mine is polluting the environment.

An illegal miner pans for gold at the mountain of Tumpang Pitu in Banyuwangi, East Java, Indonesia on November 21, 2009.
A Japanese girl admires a gold model named "Wishing to shooting stars" at a gold and silver craft exhibition in Tokyo on October 23, 2009. The 30cm-tall, 15kg pure gold artifact is worth 130 million yen (US $1.3 million).

Molten gold and flux used to remove impurities glows red hot as it is melted in an induction melting machine at Dvir Stoler Refining in New York, U.S., on Monday, Jan. 4, 2010.

Robert Stoler pours molten gold into an ingot mold at Dvir Stoler Refining in New York, U.S., on Monday, Jan. 4, 2010.

Gold bars are pictured at the Ginza Tanaka store in Tokyo October 23, 2009.

A goldsmith works on a gold ornament at a workshop in Chandigarh, India on November 23, 2009.

Gold busts of (l-r) Chinese leaders President Hu Jintao, former president Jiang Zemin, late patriarch Deng Xiaoping and Mao Zedong, are displayed at a gold exhibition in Beijing, China on November 8, 2009.

An overall view of the open pit gold-copper Cadia mine in Orange district in Australia on January 8, 2010.

Pure gold casting grain is displayed for a photograph at Dvir Stoler Refining in New York, U.S., on Monday, Jan. 4, 2010.

Source: http://groups.yahoo.com/group/funonthenet/

Gold & Diamond Jewellery - Traditional Designs


Why gold isn't a safe harbour and why it could still go up - Gartman

The Gartman Letter author, Dennis Gartman, looks at why he doesn't see gold as a safe harbour and how he sees the global political mess unfolding over the next few months.

Interviewer: Geoff Candy , Posted:  Wednesday , 06 Jun 2012

GEOFF CANDY: Welcome to this week's edition of Mineweb.com's Gold Weekly podcast. Joining me on the line is investor extraordinaire and author of the Gartman Letter, Dennis Gartman. You've been on record recently saying that perhaps gold is not the safe haven that a lot of people have thought that it was and there is a lot going on in the global economy at the moment. Let's perhaps look at some of the factors driving what's going on in commodity markets. Clearly the first big issue at the moment or at least the most pressing issue and the top of mind issue for a lot of people, is what's going on in Europe. And clearly that does have an impact on not only the global economy but also on commodities themselves, how do you see things playing out there?
DENNIS GARTMAN: OK, first of all let's talk about the notion of gold not being a safe harbour. I have gone on record as saying that gold is not a safe harbour, and by that I mean safe harbours are stable. Safe harbours are where the money that you put into it is precisely within a percent or two, the money that you get out of it. Safe harbours are safe. Gold is anything but safe. Safe harbours don't do what gold did last Friday when gold rallied 2.5%. That is clearly a speculative harbour. That doesn't diminish the investment value of gold, but I object to the term safe harbour, and I guess that never came across effectively enough. Gold in the vernacular "ain't safe". Gold is a speculation - it is probably a better speculation than is the ownership of equities in a recessionary period of time. It is a better speculation - probably a better investment than is the ownership of commodities or other commodities in a recessionary period of time. But let's disavow ourselves of the notion that it is safe. Gold is not safe - gold is speculation.
GEOFF CANDY: Before you go on though, in terms of that notion of safe harbour then, especially given what we're seeing and a lot of the concerns around things like FIAT currencies - are there any safe harbours?
DENNIS GARTMAN: Yes under your mattress, that's the safest harbour. That's the only safe harbour that I can imagine these days, to be honest. If you had asked me that same question two years ago, I would have said well perhaps Australian, New Zealand, Canadian and US debt securities may have been a relatively safe harbour. But even they have become egregiously speculative, moving violently in unusual manners. So I'm not sure that the debt market any longer is a safe harbour. I honestly, and I mean this, and this is very strange for me to say this sort of thing, but I think the only safe harbour is under your mattress. That's a safe harbour - you know when you put €1m or $1m under your mattress, barring theft, it will be there. The value may have changed but at least the corpus of what you have will have been the same. There will be no change, it will be safe and so that's important. What's going on in the commodities markets? Well I think that some important circumstances prevail - and let me make sure that everybody understands... I think I've said this before on your programme, and I'll say it again, I am not a gold buck. I don't believe that gold is the B-all and end-all - I don't believe the world is coming to an end. I don't believe that all FIAT currencies are going down the drain in one effective flush, I don't believe that. What I do think, however, is that gold as I like to aver, is moving from the lower left to the upper right on the charts and is doing so with some sense of consistency over the course of the last six years and that, given the present environment in Europe which is clearly confused and likely to become even more so with the clear recessionary, and perhaps in some terms depressionary circumstances that prevail in Europe, and I do think that 15% to 20% unemployment is depressionary levels - there's no choice but for the ECB to err eventually. The Germans won't like it but the ECB is going to have to step in and monetise sovereign debt of all the nations in Europe - it's going to have to happen - whether it happens this week, next month, later this year, it's going to happen. The Federal Reserve Bank is going to continue to err upon the side of easier monetary policy - they have no choice. QE3 after the non-farm payrolls number is back upon the table. The Bank of Canada is going to err upon the side of easier monetary policies. Last night the Reserve Bank of Australia cut its base lending rate 25 basis points, not 50, but 25 - they're erring that way. The central banks are all going to err - they have no choice but to continue to err upon the side of ease. That's probably going to inure to the benefit of the gold market. It almost has to so I think that the trend for gold is still from the lower left to the upper right. I think that you want to own gold in dollar terms, I think you want to own gold in euro terms, I think you need to own gold in yen terms and quite honestly at this point given the economic circumstances, I think you'd like to be long of gold and short the stock market. I think those are all consistent with a consistent philosophy, a consistent economic outlook, at least for the next several months...
GEOFF CANDY: In terms of the rest of the commodities complex and thinking more along the lines now of base metals and the like, I would assume that that would have some reflection on the fundamentals that we've just spoken about and the unlikelihood of a significant jump in growth within the western world at least.
DENNIS GARTMAN: I think the probabilities of growth in the western world are relatively minimal. For the next six months to a year I think the odds of growth of the kind that we needed in China, of double digit rates is probably also diminished for the next six months to a year or more before the expansionary policies and the monetary authorities can really begin to take hold and under that environment, in that regime, most commodity prices are probably not going to do that well. For example I think if you want to take the precious metals relative to the base metals, golds propensity to rise relative to copper, is probably quite large and I think gold will gain upon copper. If you were long $X of gold short $X of copper over the course of the next six months to a year, you're going to do quite well. I think that's the way to look at it. If you want to be long of the precious metals, gold and silver, short of the base metals copper, tin and zinc you're going to do well. I think that that makes sense given the current environment.
GEOFF CANDY: How do you see things playing out in the eurozone, do you see a break up as even remotely possible?
DENNIS GARTMAN: Yes I think its imminently possible - it's a matter of whether Germany throws Greece out and once Greece goes, so goes Spain and so will go Portugal. To be quite honest, if Greece got its drachma back, devalued by 50% it would be horrific for the Greek people for a period of time. But how much worse can it get than it is now and if they were to devalue the drachma, within a year history always shows that countries that devalue violently, end up doing quite well a year or two years into the future and they see economic circumstances picking up quickly - that is what history shows in every single circumstance with the exception of Zimbabwe. And I think that you should bet with history. So if Greece gets tossed out and I think that's possibly what will happen rather than Germany exiting it on its own, it forces Greece out after six months to a year, as the Greek economic circumstances get better through the devaluation, you're going to see the Portuguese and the Spanish administrations saying ‘we want to do the same thing' and they'll want out. The domino effect will take effect, no question. So I've never been a believer in the efficacy of the European monetary union experiment to begin with, and the experiment is now running amok.
GEOFF CANDY: Two questions quickly to close off with. Firstly with regard to the US and in particular the US elections. How do you see things there in terms of things like the debt ceiling and indeed what's likely to happen with the political environment?
DENNIS GARTMAN: Oh the debt ceiling will have to be expanded, there's no question. It won't be done until after the election, but mark my words, once the election is done and there's a lame duck Congress that meets for another six weeks after that election, they'll raise the debt ceiling, they'll have no choice. They will also reinstate all of the tax cuts. They will have no choice, but they'll do it as lame ducks, not the legislatures in effect before the elections. It just happens that way, that's the way it will play out. What I think that this means - if you had asked me six weeks ago, before the real tumult in Europe and its knock-on effect upon the economy here in the United States and having seen last week's non-farm payrolls number which were dismal by anybody's stretch of the imagination, if you'd asked me six weeks ago, was Obama going to be re-elected, I would have said yes. Now I have to say I'm not sure. I think it's now a coin toss and if we have two more months of bad non-farm payrolls numbers, he's out - which in my opinion would be a very good thing. But between now and the election, there's a great good deal of confusion and as I say in almost every speech that I give, economics is very simple. All economics is a study of people's propensity to take action. That's all economics is and between now and the election, what is the propensity on the part of businessmen and women, to expand production of anything I think relatively minimal. There's so much confusion that reins, the propensity to act is very large, the propensity to - as we say in the south - to hunker down is even larger and will just muddle through with very tepid growth, or we may actually even tip to modestly negative growth. It will not be substantive but there will be no growth between now and November until there's clarity in the political environment.
GEOFF CANDY: Finally then, in terms of gold going back to it, there's been a lot of talk recently about its use as a tier one asset within the banking system. How do you see that working, do you think that is likely to happen and if so will it have any major longer term effect?
DENNIS GARTMAN: I doubt that it's likely to happen. If it were to happen, on the announcement gold would be up $600 an ounce - it would be astronomic. Do I think that it's likely to happen...? I just throw that number out - let me revise that and say on that announcement, if there were such an announcement ever to happen, and I'm not sure that there shall be, gold will be up violently let's make that statement. Do I think that that's likely to happen? Probably not. Is it being debated? I suspect back in... I think the sherpers as I like to refer to them have probably had those discussions, and after the third Martini when people start to tell the truth, they probably have brought those discussions up, but do I think that that's likely in the next year or two or three, probably not...
 SOURCE:  http://www.mineweb.com/mineweb/view/mineweb/en/page96990?oid=152750&sn=2010+Detail&pid=96990


What Indian consumers think about gold: survey 

A new survey by Morgan Stanley finds that, although Indians are set to buy less gold in 2012, with volume demand to drop 13% for urban India, respondents said they expect gold prices to rise by 8% this year.

The Indian government's attempts to curb gold demand, since gold already represents 72% of India's current account deficit, appears to be working. India's demand for the precious metal is estimated to fall by 4% in volume and rise 4% in value in 2012, according to a report by global bank, Morgan Stanley.
The research report expects volume demand to drop 13% for urban India and rise 4% for rural India. 
Morgan Stanley conducted a survey of 2,019 urban and rural gold buyers across 16 Indian cities for urban consumers and 8 Indian states for rural consumers.
The survey report notes that Indians own 20,000 tonnes of gold worth $1 trillion. Household gold consumption appears to have gone up to $45 billion in 2011 from $19 billion in 2009. To put things in perspective, India's gross domestic product (GDP) is inching closer to $2 trillion. This means, the value of gold held by Indians is comprises nearly half of the country's GDP.
Gold accounts for one-third of the household portfolios Morgan Stanley surveyed. Respondents from several households said they expect gold prices to rise by 8% in 2012. However, an additional 8% to 10% rise would lead to a proportionate decline in volumes.
The survey notes that gold is not the first asset that Indian households liquidate during bad times; it is equities. Gold remains an important asset class for investment, having outperformed most other asset classes over the past five years.
Indian households also are increasing their demand for gold bars and coins. The survey notes rising income is behind the growing share of gold bar holdings.

The survey notes that India's demand for gold is driven by both consumption and asset class considerations.
The report indicates that the demand for gold will be split equally among investments and `life events' (which includes marriage or other ceremony, religious occasions, gifting, fashion statements and the like) and discretionary consumption.
Though `life events' are more important for rural consumers, urban consumers will tend to strike a balance between the need to invest in gold and `life events'.
The report adds that in 2012, gold demand for life events is expected to increase by 50% pushed by an increase demand from rural India.
With regards to the drivers of gold purchases, the report adds that so-called ‘life events' were responsible for around 45% of gold purchases by urban households in 2010, while discretionary consumption was around 25% and investment as a driver accounted for another 30%. 
In 2011, life events as a driver for purchase came down to 35%, and investment rocketed to around 40%. Discretionary consumption was the other 25%.
The report notes that Indian households are increasingly channelling their investment demand through bars or coins. The report projects a 2% to 3% point increase in share of bars and coins this year. The World Gold Council has said bars and coins represented 39% of total investment in 2011, a record high.
When speaking about the reasons why they bought gold jewellery in the past 12 months, respondents said auspicious events like marriages and festival accounted for 35%, while investment demand accounted for 20%. Buying gold as a backup for bad times accounted for 16% of those surveyed, while gifting on events was another 15%. 
Around 8% of those surveyed said they bought gold as an impulse buy or bought gold for no specific reason. Another 6% of those surveyed said they bought gold because they were fond of the precious metal.
Around 13% of Indian households have taken loans against gold in the last year, with a slightly greater prevalence in rural India. Some 60% of rural households choose the unorganized sector for taking gold loans, while banks are preferred by urban households. 
These loans are usually taken for funding farming activities in the case of rural households, while for urban households the reasons are quite dispersed. The rate of interest is in the 15% to 20% range.
Asked what would happen if prices were to rise above expectations, 46% of those surveyed said they would keep the same amount for purchase though reduce the quantity of gold, another 25% said it wouldn't matter and they would increase the amount spent, some 19% said they would cut down on their total spends on gold and invest more in other assets, while just 6% said they would buy studded gold jewellery instead (which has lesser usage of gold).
The report adds that if prices continue to rise, demand may not come off given investor psychology.
Author: Shivom Seth
 Source:  http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=152703&sn=Detail