5 Feb

India Bought 703 Tons of Gold Jewelry in 2015

WRITTEN BY Meera Shawn

Jewelry demand was 703 tons

India has once again taken the torch from China and become the leading buyer of gold in 2015. India bought a whopping 703 tons of gold jewelry in the year, and its aggregate jewelry and investment demand rose 6% to reach 890 tons in the year. This rise in demand, however, was presumed to be nominal, as gold saw a price slide of almost 10% in 2015.

Gold-based investments such as the SPDR Gold Shares ETF (GLD) and the iShares Gold Trust ETF (IAU) also plunged alongside gold in 2015.

India Bought 703 Tons of Gold Jewelry in 2015

Higher demand figures were expected from India given the plunge in precious metals prices. This is because India is a gold-loving country, and gold-hoarding behaviour can be observed there. Gold’s fall in price thus favored the country.

Negative impact

Weaker monsoons in India adversely affected farmers’ disposable incomes, resulting in slightly lower-than-expected demand. The increase in debt burdens of lower- and middle-class populations, which constitute a significant chunk of India’s total population, may also be the cause of the curb in demand.

2015 was the third-largest year of imports

March 2015 saw the year’s highest amount of gold imported into India. The figure rose to 121.8 tons. The total import figure for 2015 was 922.4 tons. As precious metals are priced in US dollars, import bills for India fluctuated according to the price of the dollar.

2011 saw the largest gold import bill, and 2015 saw the third-largest import bill in the past six years. It seems that lowered prices have encouraged investors to buy gold.

Miners gained

2016 is seeing gold recover from its 2015 losses, and the overall market sentiment for gold remains bullish. Gold’s recovery has also helped mining-based investments such as GoldCorp (GG), NewGold (NGD), and Gold Fields (GFI), which have risen 4.7%, 6.4%, and 31.4%, respectively, in the past trading month.

These three stocks together make up 13.5% of the price changes in the VanEck Vectors Gold Miners ETF (GDX).

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.