Global gold demand down at 5-year low

November 14, 2014

Global gold demand
London, Nov 14: Global gold demand fell to its lowest in nearly five years in the third quarter as Chinese buying slid by a third, the World Gold Council said on Thursday, putting it back behind India as the world's biggest gold consumer.

Total gold demand fell 2 per cent to 929 tonnes in the third quarter, the data, prepared in conjunction with GFMS analysts at Thomson Reuters, showed. That is the lowest since the last three months of 2009.

Last year's number one consumer China saw a 39 per cent drop in jewellery consumption as well as a 30 per cent fall in bar and coin investment. Combined demand fell 37 per cent.

India once again took over as the world's biggest gold consumer, buying 225.1 tonnes of gold jewellery, coins and bars last quarter, compared to 182.7 tonnes in China.

India, which lost its crown as the leading gold buyer to China in 2011, saw a 60 per cent surge in jewellery demand in the third quarter.

"Our forecast for the full year is the same for both India and China. We expect demand in both to come in at between 850-950 tonnes," Alistair Hewitt, head of market intelligence at the World Gold Council, said. "Both remain very positive pillars of gold demand."

Demand for gold snowballed in the wake of the financial crisis that followed the collapse of Lehman Brothers in 2008, as investors sought the metal as a portfolio diversifier and safe store of value.

It peaked in 2011 at 4,702 tonnes, but had fallen to 4,080 tonnes by last year. Prices XAU=, which crashed 28 per cent last year, have fallen another 3.3 per cent in 2014. This year the WGC expects gold demand to stabilize.

"We expect gold demand to be largely similar to last year, at between 4,000-4,100 tonnes," said Hewitt.

The third quarter marked the seventh consecutive quarter of outflows from exchange-traded funds. Holdings of the vehicles, which issue securities backed by physical gold, fell 41.3 tonnes last quarter, the data showed.

Global demand for gold jewellery, the biggest single area of consumption, fell 4 per cent to 534 tonnes.

Among supply sources, mine production rose 1 per cent to 812 tonnes, while scrap supply fell 25 per cent to 250.5 tonnes. Year to date, 2014 has seen the lowest level of recycling since 2007, the WGC said.

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News Network
September 17,2024

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New Delhi: The Supreme Court on Tuesday halted unauthorised bulldozer action against private property, anywhere in the country, till October 1, dismissing concerns by the government that demolitions sanctioned after following due process could be impacted. 

The "heavens won't fall if we ask you to hold your hands till the next hearing", a bench of Justice BR Gavai and KV Viswanathan declared.

An irate top court - which has already come down hard, twice this month, on 'bulldozer justice' meted out by various state governments - also warned the government against "grandstanding" and "glorification" of this practice. "No demolition, till next, date, without permission of this court," the government was told, and warned the Election Commission may also be put on notice.

The court's reference to the poll panel is significant given elections are due in Jammu and Kashmir (the first Assembly election in a decade) and Haryana, where the Bharatiya Janata Party is looking to return to power. Elections are also due this year in BJP-ruled Maharashtra and Jharkhand.

The court, however, also clarified its order is not applicable to removal of encroachments in public spaces such as roads, railway tracks, water bodies, etc.

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News Network
September 17,2024

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New Delhi, Sept 17: Atishi will be the new Chief Minister of Delhi. The decision came after a legislative party meeting was chaired by Arvind Kejriwal at his Delhi residence earlier today.

Kejriwal is expected to tender his resignation later today, and will also meet Lieutenant Governor VK Saxena at 4.30 pm.

On September 13, Arvind Kejriwal was released from Tihar Jail, where he had been lodged for his alleged involvement in the Delhi liquor policy case. Nearly two days after his release, on Sunday, Kejriwal said he would resign as the Chief Minister within 48 hours.

He also sought early polls in Delhi, and vowed not to sit in the chief minister’s chair until people gave him a “certificate of honesty”.

On Monday, the AAP held a series of meetings as Kejriwal sought feedback from members of the political affairs committee, the party’s highest decision-making body, on his successor in one-on-one meetings at his official residence.

Names of Delhi ministers Atishi, Gopal Rai, Kailash Gahlot and Saurabh Bharadwaj were making the rounds as contenders, news agency PTI had quoted party insiders as saying and added that Kejriwal’s wife Sunita Kejriwal and Assembly Speaker Ram Niwas Goel were also the probables.

Mangolpuri MLA Rakhi Birla, who is also the deputy speaker in the assembly, and Kondli legislator Kuldeep Kumar were also potential candidates, they added.

Earlier, sources with the AAP had told PTI that the surprise candidate could also be a member of the minority community as the party has witnessed its support among the community wavering since the 2020 Delhi riots.

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News Network
September 17,2024

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As the Modi-led NDA government completes the first 100 days of its third term, the Congress party has launched a scathing attack, dubbing it as the "U-Turn Sarkar" for its failures and policy reversals.

At a press conference in Delhi, Congress spokesperson Supriya Shrinate highlighted what she called "100 days of instability, indecisiveness, and immaturity," accusing the Modi government of damaging critical sectors of the economy and public infrastructure.

Shrinate criticised the government's handling of the economy, which she described as being in "dire straits".

She argued that under Modi's leadership, sectors such as agriculture, youth employment, and infrastructure have been neglected. "These 100 days have been very heavy on the country's economy, farmers, youth, women, infrastructure, railways, and institutions," she said, adding "It has become clear that Narendra Modi has no vision to deal with the country's problems."

She went on to debunk the government's claims of progress in infrastructure development, citing multiple instances of structural failures in key projects.

“The airports inaugurated by Narendra Modi--from Jabalpur to Delhi and Rajkot--could not even withstand a single monsoon,” Shrinate pointed out. She also referenced failures such as:

•    Atal setu: Constructed at a cost of Rs18,000 crore, the bridge developed cracks soon after its inauguration.

•    Sudarshan setu in Gujarat: Opened in February 2024, it also developed cracks within months.

•    Shivaji statue collapse: The iconic statue of Chhatrapati Shivaji Maharaj was destroyed within eight months of being unveiled, an event Shrinate described as an "insult to Shivaji Maharaj."

•    Ram mandir water leakage: The sanctum sanctorum of the Ram Mandir, a symbol of faith for millions, was found to be leaking during the monsoon.

•    "Who will take accountability for these incidents?" Shrinate asked, questioning the government's competency in executing large-scale projects.

•    On railway safety, Shrinate accused the government of overseeing a period marked by frequent accidents and derailments.

•    "There have been 38 railway accidents in 100 days, resulting in 21 deaths," she stated. Despite the public outrage following the tragic Balasore accident, which killed nearly 300 people earlier this year, the Congress spokesperson said that the government has failed to take effective measures to improve rail safety.

•    She criticised the slow implementation of Kavach, an anti-collision device, stating, “The reality is that even after 21 deaths, Kavach is being installed at a pace of 2 km per year, while the Railway Minister shamelessly calls these 'minor' incidents.” Shrinate’s remarks come amidst mounting public concern over the Modi government’s inability to secure rail travel in one of the world’s largest railway networks.

In addition to infrastructure and safety concerns, Shrinate accused the Modi government of making hasty policy decisions, only to later backtrack under public pressure. "If any of your decisions affect the country negatively, it won’t become law because the government will take a U-turn on it," she said. Among the key policy reversals Shrinate cited were:

•    Lateral entry: A controversial policy of hiring private-sector professionals for bureaucratic roles, which was quietly shelved.

•    Broadcast Bill: Withdrawn after fierce opposition, highlighting the government's poor handling of policy legislation.

•    Waqf Board Bill: Another example of the government's failure to gauge the impact of its decisions.

•    NPS to UPS: Indexation policy changes that were hastily reversed after protests from key stakeholders.

"Narendra Modi's first 100 days symbolise not just U-turns, but a government that is fundamentally unsure of its direction," Shrinate remarked.

"In 100 days, 104 heinous crimes have been committed against women, in which there are 157 victims. Women are raped publicly in BJP ruled states but Narendra Modi doesn't say a word on this. But how will you speak, because you are the one who stood with those who sexually exploited the daughters of the country," she added.

The Congress's sharp critique of the Modi government's first 100 days has set the tone for the coming months, as the opposition gears up for a series of state elections and prepares for the 2024 general election.

"The country cannot afford this level of instability, immaturity, and incompetence," Shrinate concluded, calling on citizens to hold the Modi government accountable for what she described as its "endless U-turns and policy failures."

In these 100 days, Congress has made clear that it will focus on highlighting the government’s missteps in the economy, public safety, and governance, presenting itself as a viable alternative in the face of what it calls "a government in retreat."

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