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| May 09, 2008 | | Is the gold bull run ending?
The current battle in the gold market sits around the $900 level, a fairly steep retrenchment from the recent highs of $1,030 per ounce, writes David Galland of Casey Research. Some investors, their hopes dashed that $1,000 would be quickly and decisively overrun, are seeing disaster in this correction and dropping their gold investments as they run for cover. But current correction does not imply reversal in gold's fortunes. Global inflation & oil prices push gold's rise.
Where there is money, there is gold
The essential and irreplaceable function of gold in the global financial system is money. Gold exists in a relatively fixed supply and is the only currency that cannot be inflated at the discretion of political and economic advantages. It is a true store of wealth, unlike the paper currencies that can be created in unlimited quantities. Gold can be over or undervalued by investors at any point in time, but over the long-term, its purchasing power remains stable.
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| May 07, 2008 | | Rice is dear to us, Mr Bush!
In the new generation diplomacy, the US definitely occupies the most important place on Indian thinking wavelength but India is no sub-contractor of America in the global context wherein Uncle Sam can decide what and how much Indians should eat or not! US President George W Bush blaming the 'wealthy' lifestyle of India's huge middle class for the spiraling global food prices endorsing his Secretary of State Condeleezza Rice views only adds insult to the injury for Indians.
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| May 05, 2008 | | India may ban food futures trading
Speaking to reporters in Madrid, he said ''The pressure is to suspend a few more food articles, If rightly or wrongly people perceive that commodities- futures trading is contributing to a speculation-driven rise in prices, then in a democracy you will have to heed that voice''.
Real facts behind food crisis
According to USDA estimates, the US accounted for an average of 11.5 percent of world exports of rice for calendar years 2004 through 2007 and is projected at 12.7 percent for 2008. US exports will increase to 3.5 million metric tons while world total exports decline to 27.5 MMT. The largest rice exporter is Thailand at 9.0 MMT for 2007/08, 32.7 percent of world exports, down 0.5 MMT from 2006/07 and up from 7.3 MMT in 2004/05 and 2005/06.
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| May 02, 2008 | | 'Wanna beat rice crisis, go for sweet potatoes'
In a recent call to Filipinos, president Arroyo said they should boil rice with sweet potatoes or they should go for cheaper cereals to avoid going hungry as rice prices soared to record levels. "This is a once-a-millennium global crisis. We have an action plan," Arroyo said, noting that residents of the central island of Cebu are already using cheap sweet potatoes to beat the crisis.
Is Exxon on a sticky wicket?
According to reports, the world's biggest energy group announced a first-quarter record profit of $10.9 billion but its oil production fell almost 10 per cent in the first three months of the year. Moreover, its refining profits also slumped. Reports said that the company's broader market rallied, but Exxon shares fell 3.6 per cent to $89.70.
Indians, don't eat! Let US eat well!
Last year, India's food consumption increased almost 5 per cent considering that it had 7 plus GDP growth. India consumes more edible oil than any other country in the world. Most of the staple diet of many countries are soybeans, maize, rice, wheat etc. Many readers have complained that Rice's statement was taken out of context to sensationalize. Here is what happened.
Eat less, feed the world : Rice tells India and China
And she has blamed the 'growing Indian and Chinese appetite in contributing to the global food crisis'. The US Secretary of State is technically correct since both the countries dominate the world food consumption. But analysts feel she is morally and socially wrong.
Another Green Revolution or people will starve
World food prices have been rising since 2000, but this sped up slightly in 2007, then sharply in early 2008. High prices have hit the urban poor especially hard, and led to food shortages, riots and demonstrations worldwide. IRRI is part of the Consultative Group on International Agricultural Research, a network of international agricultural research institutes started in the 1960s.
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| April 30, 2008 | | 'Futures trading is not responsible for inflation'
The Indian government on Tuesday released the report from a Committee that studied the impact of futures trading on agricultural commodity prices. The Committee under chairmanship of Prof. Abhijit Sen, Member, Planning Commission was appointed on 2nd March, 2007.
Expect biofuel from grass soon!
In an effort to produce biofuel from a variety of elephant grass, Monsanto Co of Creve Coeur and Mendel Biotechnology Inc are joining hands. According to the two companies, Monsanto will lend its crop-testing, breeding and seed-production expertise to the Bioenergy Seeds & Feedstocks unit of Mendel, based in Hayward, California.
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| April 29, 2008 | | Carat: It's different for gold and diamonds
In today's world if the diamond is over one carat in size it will usually come with a certificate from the laboratory specifying the inclusions, color and size. The carat itself is made of one hundred particular parts called points. While it is possible to estimate the weight of a mounted diamond, the lab uses ultrasensitive scales to achieve an exact weight, measured 3 decimal places, although the third decimal place is not usually mentioned at the retail level.
HUL at 75, to decrease C02 emissions, help farmers
HUL has recently developed a new process of manufacturing soap based on 'Plough Share Mixer' technology which eliminates the need for steam in soap making. The new technology cuts carbon emissions by 15,000 tons per year and HUL has been awarded carbon credits for this under the Clean Development Mechanism scheme operated by the United Nations Framework Convention on Climate Change.
All about India's derivatives markets
The first leap towards an organized derivatives market came in 1848, when the Chicago Board of Trade, the largest derivative exchange in the world, was established. Today, equity and commodity derivative markets are rapidly gaining in size in India. In terms of popularity too, these markets are catching on like a forest fire.
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| April 24, 2008 | | India: 3rd largest steel producer in 2013
India is poised to be the 3rd largest steel producer by 2013. Strong local demand and global fundamentals will drive Indian steel output to 100mn ton from 53mn ton in 2007. Steel demand is expected to grow 4-5% over next 4 years despite recessionary conditions in the US due to rising share of emerging countries in global GDP. According to Goldman Sachs, global steel supply will continue to remain tight in 08. Indian steel consumption has grown from 3.4% in FY02 to 11% in 07.
Gold responds to falling oil, rising dollar
Gold prices came under renewed selling pressure in the pre-New York opening hours on Wednesday morning, this time responding to a declining crude oil and rising US dollar value. Values quickly fell towards the lower $900's as participants continued to be frustrated by the metal's recent lack of response to outside drivers and by investor apathy. The current pause is still seen as a period of consolidation and the risk of a breach of the $900 level remains in place.
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| April 23, 2008 | | Will the world embrace jatropha revolution?
The desperation in countries like the United States is turning into forlornness. History says that whenever the West gets desperate enough over any festering issue, they find a solution. The discovery of penicillin is the product of such desperation. With this level of hopelessness, it will not be surprising if the world is seeing the last days of the lordship of the almighty crude oil.
Doubt looms over MFs, banks entry into futures
The decision of the US regulator not to allow financial institutions any further increase in their exposure to commodity futures leaves a question mark on the proposal to allow MFs and banks to trade in commodity futures in India. In India if mutual funds, banks, NRI's and Foreign Institutional Investors (FIIs) are allowed there should be limits fixed by the regulator regarding exposure to commodities. The price discovery function can happen only if there is liquidity.
Holding gold is the best investment now
Gold is playing a decisive role in the present economic scenario as inflation and recession have eaten the vital parts of every country's economy. Most investors prefer to invest their money in gold these days. Most traders think that this is the good time to squeeze maximum benefit from the collapsing economy. With the markets now concerned about inflation, gold has posted its credentials separately from its role as a mitigator of financial and political risk.
Why oil reserves are depleting
The term peak oil refers to the maximum rate of the production of oil in any area under consideration, recognising that it is a finite natural resource, subject to depletion. Cumulative production is the sum of all oil that has ever been produced until a specific date. Cumulative production can be given for a field, oil basin, country or the world. Decline rate refers to production only. Depletion differs from the decline rate as it takes into account the amount of oil left.
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| April 22, 2008 | | How long will India's petroleum reserves last?
In India, petroleum consumption is increasing at a very steep rate from 3.5 MMT in 1950-51 to 74.7 MMT in 1995-96. This is expected to reach 130 MMT in 2001-2002 and 175 MMT in 2006-2007. This fact, coupled with the present and expected consumption rates, implies that these reserves may not last beyond the next 30 years. Therefore, the need of the hour is to conserve petroleum by its judicious use, substituting it by other resources wherever feasible and restricting its use.
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| April 19, 2008 | | How far is OPEC responsible for oil rally?
OPEC expects an additional daily average output growth of 1.2 million barrels or a daily average oil output of 87 million barrels in 2008. The OPEC output quota this year will be less than 32 million bpd and non-OPEC output would be about 50.3 million bpd, according to a report . OPEC's actual production will be higher than the quota but that will not be sufficient to coverup the demand-supply imbalance in the international market.
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| April 18, 2008 | | Beware! Global wheat stock is just vanishing
Wheat is among the planet's most important food crops, but it has a natural enemy that can turn the crop into a black tangle of broken stems. Cornell University hopes a new $26.8 million grant can help them combat the emergence of deadly new strains of rust disease and help avert a pandemic that could produce catastrophic wheat crop losses worldwide.
Gold is a safe bet in recession: WGC
The only element of demand for gold likely to be affected by a recession is investment demand, "but that in turn will depend on the 'type' of recession,". Recessions can be bad for commodity prices, as consumer and business confidence falls, demand for goods and services is cut, weighing on demand for raw materials and depressing prices.
Go for hybrid rice, feed the world
The International Assessment of Agricultural Science and Technology for Development stopped short of an explicit global action plan, but highlighted several options that leaders throughout the public and private might consider in an effort to assure affordable food is produced in a sustainable manner. The report said agricultural knowledge, science and technology alone cannot solve problems "caused by complex political and social dynamics"
Who is responsible for rise in oil prices?
OPEC, which has oil reserves that constitute 80 percent of the total global reserves, is unwilling to increase output to bring down oil prices. This makes OPEC too responsible for the rising oil prices, apart from the weak dollar. OPEC has said that world oil demand this year is forecast to grow by 1.2 million barrels daily to an average of 87 million barrels per day. As OPEC's output remains insufficient to cover rising demand from Asian region, oil prices will tend to rise.
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| April 17, 2008 | | Why crude oil is on fire
Gold prices took off for higher ground overnight as the divergent oil and dollar fueled additional speculative interest in the metal.
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| April 16, 2008 | | Gold, silver will face short term decline
Forecasters are bullish on gold in long term but for the short term, this market may have some more work to the downside. Normally, gold and silver are the destination of a 'flight to quality' during nervous markets, but that was not the case last month. The gold and silver markets fell in the final week of the commodity decline. Gold surpassed the $1000 mark briefly, but fell to the deflationary forces by declining $100 before recovering in the last full week of March.
Food, gold dearer; currency slipping
All over the world, food riots are breaking out. Not because there is too much food or too little, but because it has gone way up in price. Worldwide inflation of food prices is a monetary phenomenon, not an agricultural phenomenon. With bread prices on the rise, politicians feel compelled to intervene. And every intervention falls upon the crops like a cloud of locusts. The price of rice rose 50% in the last two weeks, causing nations to make a run for rice.
Farmers, mend your ways or perish: Study
If the world wants to tide over the present crisis, the farmers must shift their agriculture methods to confront soaring food prices that threaten to drive millions of poor people around the world into even deeper poverty. Basic foodstuff prices have all risen sharply in recent months, sparking violent protests in many countries. Unesco attributed the trend to increased demand in emerging market powerhouses China and India and alternative use of corn and soybeans for biofuels
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| April 15, 2008 | | 'Gold prices to stabilise at $850-950'
Gold fell to, and held near-term support at $914.00 in overnight trading in Asia before turning higher in the morning hours, ahead of the New York opening. New York spot trading opened with gold at $ 926, up $ 1.20 as players watched the dollar dropping under 71.60 on the index, and crude oil rise to just above $ 111 per barrel. Silver was down 6 cents on the open, quoted at $17.68 but the noble metals took a harder fall. Platinum lost $48 at $1960.00 & palladium dropped $13.
Commodity exchanges reel under CTT impact
The commodity transaction tax (CTT) proposal has started taking its toll on commodity exchanges. According to exchange officials, the turnover of commodity bourses has dropped sharply on transaction tax proposal and reports that the government may ban Futures trading of more commodities. The turnover may get eroded by another 20-30% once CTT comes into effect. CTT was unique and it has not been imposed on any Futures market anywhere in the world.
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| April 14, 2008 | | Watch oil, listen to Bernanke, and follow the dollar
The dollar touched a new all-time low vis-a-vis the euro and sank to 71.50. Europe's inflation rate touched 2.9% as crude oil prices also rose. Gold prices were pushed skywards in the fourth quarter of 2007. Silver gained 4 cents to $18.21, while platinum rose $10 to $2036 per ounce. In such a scenario , senior analyst, Kitco Bullion Dealers Montreal, advises investors to watch oil, listen to Trichet and Bernanke, and follow the dollar.
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| April 11, 2008 | | NCDEX launches CER carbon credit futures
In a significant development, India's National Commodity & Derivatives Exchange Limited on Thursday launched its futures contract for Certified Emission Reduction. Forward Markets Commission, chairman, B. C. Khatua inaugurated the launch at NCDEX Exchange Platform. The CER contract of NCDEX will be traded in multiples of one lot of 500 CERs each.
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| April 10, 2008 | | CTT: A fatal blow to commodity futures
Even as experts were debating pros and cons of the waiver, came the first-ever announcement in the history of commodity markets anywhere in the world the introduction of Commodity Transaction Tax and this, coupled with service tax imposed on commodity exchanges, was a blow to the nascent commodity Futures industry in the country.
Food prices to rise further?
If you are already cribbing about that rising food bill, there is more bad news in store for you. If the World Trade Organisation's present negotiations are any indication, the farm subsidy is going to end soon and that will further trigger increase in global foodgrain prices, making cereals costlier for several nations.
Food processing: New era in the Indian economy
The food processing sector in the country with its vast potential has emerged as one of the major driver of economic growth. It is encouraging to note that while the country's GDP growth rate had increase from 3.5 per cent in 2002-03 to 9 percent in 2006-07, the food processing sector has grown from 7 per cent to 13.1 per cent during the same period. India is a country of over 1.10 billion consumers, there is a large untapped domestic market of 1,000 million consumers.
Chandigarh to be 1st Solar City of India
The UT has already issued requisite directives to all the officers to start preparations for achieving the 'Solar City' target within the stipulated time frame. The administration said people should accept that they are in the middle of climate change and the frequency of natural disasters is increasing at an alarming pace.
Why are rice prices shooting up?
In a research note, Standard Chartered Bank said continuing concerns over exportable surpluses should keep rice prices above $20 per quintal for most of the year. Among the concerns are export restrictions that could potentially increase inflationary pressures in importing countries that have few substitutes for rice. When the new crop arrives from Thailand it will exert downward pressure on prices.
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| April 09, 2008 | | US dollar is a flawed currency: Rogers
Legendary investor Jim Rogers says the US dollar is a terribly flawed currency. He says the United States' foreign debts are increasing at the rate of $1 trillion every 15 months. He found defects in the workings of Federal Bank. The bank's mandate was to have a sound currency, and then it was later expanded to help employment. But under Bernanke's leadership, the Federal Bank is busy bailing out investment banks and Wall Street. He is getting all his money out of US dollar.
Will IMF gold sale hit bullion market?
According to IMF, the body is planning to raise $6bn by selling 12.97 mn ounces of gold, about 12% of the total holdings it has. IMF officials said the sale would likely take place over several years in an effort to avoid market disruption. The news of the IMF decision will most probably affect the bullion market. It is a fundamental step that will enable IMF to remain an independent, astute and dynamic international organisation. It will put IMF on solid financial footing.
Loan waiver: Distressed farmers are not celebrating
Farmers of Punjab are not celebrating the farm loan waiver yet, viewing the loan waiver as a 'temporary crisis management measure' by political parties ahead of an impending election. Going by National Sample Survey Organisation's (NSSO) figures, every farmer household in India was having an average outstanding loan of Rs 1,258. In Punjab, it was the highest at Rs 41,576 (December 03 figures). The recovery rate of institutional loan in Punjab was 85%, highest in the country.
India's gold dagger set for record auction
A gold-encrusted dagger once carried by the builder of the Taj Mahal is expected to fetch some 500,000 Euros at an auction this week, says a report from the World Gold Council web site. The artefact, which was once held by the Mughal Emperor Shah Jahan, is being auctioned at Bonhams on Thursday. The gold-encrusted dagger is part of the collection of Indian and Islamic art & artefacts owned by Jacques Desenfans, who spent more than 50yrs collecting historical & cultural items.
Gold is a hedge against declining US dollar
Gold has always served as a hedge against inflation and declining US dollar. When investors realise that their money is losing value they will start positioning their investments in a hard asset that has traditionally maintained its value. The reason gold benefits from a declining US dollar is because gold is priced in US dollars globally. Whenever there is news that hints at some type of uncertainty, investors will often buy gold as a safe haven & as diversifying investment.
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| April 08, 2008 | | India's spectacular story in petroleum refining
India has witnessed a spectacular growth in the refining sector over the years. Today, there are 14 refineries in the country, 13 in the public sector and one in the joint sector, with an install capacity of 60.4 million tonnes per annum. Presently India is undergoing major economic and industrial reforms for integrating its economy with the global economy. In the liberalised scenario, the hydrocarbon sector has been identified as one of the main areas of the focus.
BRIC nations: Heroes of 2050
Goldman Sachs Investment Bank in a paper in 2003 argued with facts, figures and importantly optimism that the economic potential of BRIC nations is such that they may become among the four most dominant economies by the year 2050. The foreign ministers of BRIC nations will meet in Moscow in Spring 2008 to discuss issues of mutual interest in the international arena. The BRIC countries account for about 40% of the world population & each country has its own unique advantages.
Despite rain loss, govt sure of wheat target
The Central government is certain that the country will meet the wheat production target for 2008-09., inspite of the hailstorms that destroyed standing crops. According to data provided by officials, wheat crops in around 100,000 hectares of land have been damaged in Haryana itself after the recent hailstorms. The exact loss was being assessed and a special revenue assessment will be ordered later. But govt said wheat production estimate remains unchanged at 74.81 mn tonnes.
Can Indian steel prices be at par with China?
Industry experts insist that rising steel prices are triggered by rising input cost like scrap, iron ore and coking coal. The current international pricing scenario demands a prices increase domestically. The rising raw material costs and other available inputs as well as limited capex resources have driven the steel prices. The government has been taking steps to control prices by increasing the export duties on some commodities and even banning exports on some.
Commoditiy derivatives: All about options
Option is a contract that conveys the right, but not the obligation, to buy or sell a particular item at a certain price for a limited time. Only the seller of the option is obligated to perform. An option gives the right but not the obligation to buy (call option) or sell (put option) an underlying commodity or financial instrument at a specified price (exercise price or strike price) by or at a certain date in the future. The underlying instrument is usually the commodity.
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| April 07, 2008 | | What Dell can teach India's IT firms
While Indian IT majors are still far away from waking up to the looming threat of global warming, Dell is seriously converting to green power. Moreover, several India firms are still to make a serious effort to tackle the e-waste whereas Dell is now powering 100 per cent of its 2.1 million sq ft global headquarters campus, home to more than 10,000 employees, with green power.
'India offers the biggest investment opportunity'
Today's smartest investors are asking about India, not China. India has seven times more impact on the US than China! Smart investors know that Indian companies' return on equity is 21 per cent compared with 10 per cent for China.
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| April 05, 2008 | | Gold can purify drinking water
According to news article posted on the World Gold Council web site, gold nanoparticles ten thousand times smaller than a human hair could be used to break down chemicals in drinking water and reduce pollution. It said the particles, which mix gold and palladium, are the creation of engineer Michael Wong from Rice University in Houston, Texas.
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| April 04, 2008 | | Recession: European economy is also slowing down
The consumer price index was estimated as being up 3.5 per cent in March from a year ago, the biggest increase in 15 years. On June 6, 2007, the European Central Bank raised its key interest rate from 3.75 pe cent to 4.00 per cent, the highest level in almost four years. In terms of economic freedom, old Europe still lags behind. The Heritage Foundation has the three largest economies, Germany, France, and Italy, ranked 19th, 45th, and 60th respectively in the world.
American economy is caught in a whirlwind
With Europe focusing still on price stability (i.e. inflation), the weaker economies of Europe are taking the strain as the Euro rises on the currency markets. Stronger nations like Germany are doing well internationally, so they are affected far less by a strong Euro than weaker states such as Spain, Greece and Ireland. This was reflected in the 9 per cent growth in Japanese exports last month, which saw 15 per cent growth in trade with China alone.
'I am sure Gold is headed for $1650'
In times like these I invite you to put your non-margined hand in my totally confident hand. Be calmed as we walk the wildness of the gold market to $1650. I know gold is headed for $1650. If that is not enough for you today, then please allow me to demonstrate my commitment to my view of the gold price.
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| April 01, 2008 | | US unveils plans to arrest economic turmoil
The short-term recommendations include improvements to regulatory coordination and oversight that regulators can make quickly. The blueprint recommends creating a new federal commission for mortgage origination to protect consumers better. The report also recommends modernizing the President's Working Group on Financial Markets and clarifying the Federal Reserve's liquidity provisioning.
CTT on commodity futures not viable
In a memorandum to the Finance Minister, the exchanges said that FM's proposal to impose the Commodities Transaction Tax (CTT) will ruin the budding commodity futures business in India. In its arguments, it said CDM is at a nascent stage. It is only 4 years old. Participation of banks, mutual funds, FIs, FIIs is still not allowed. Options contracts, index futures & futures based on intangibles are still to come. Cost increase in India will induce hedgers to global exchanges.
Markets: What the stars foretell
As per financial astrology, bulls may now show their strength in stock, commodity market. Upward movement is expected to begin with Asian market followed by European and US stock markets. Therefore, investors are advised to invest in A grade stocks: metal, ifrastructure, oil and gas, telecommunications, automobile, FNGC, power. For heavy engineering, apex financial institutions, they should have 30 days' investment view.
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| March 31, 2008 | | 'Bull run in commodities market will continue'
Generally, it has been seen that commodity prices are driven higher by surging demand throughout the world. But the irony is that the latest surge comes amid concerns about a weaker global economy. At present, commodities prices are rising because the U.S. interest rates are falling below the rate of inflation.
Soon, blue cotton to storm the world!
Monsanto has envisaged the transfer of a gene from a blue flower to the cotton plant to produce blue cotton. Monsanto's current Blue Cotton programme is aimed at the jeans market ($10 bn in the US and £800 mn in the UK) and involves the transfer of a gene from a blue flower to the cotton plant. Coloured cotton is also being produced not only by conventional genetic selection but also by direct DNA engineering. Naturally coloured cotton is a new way to preserve the eco system.
There will never be too much oil
Peak oil has been a matter of discussion in recent times. Christophe de Margerie, the Chief Executive of Total in France, says the world will never produce 100 mn barrels per day of oil; we currently produce around 85 mn barrels per day of oil. In UK, it is widely understood by the general public that the U.K. is going to be a net importer of energy from now on. Peak oil is a reality. It may take a generation for all the effects to be played out but they will be played out.
The arithmetic of global futures trading
The leverage of futures trading stems from the fact that only a relatively small amount of money (known as initial margin) is required to buy or sell a futures contract. On a particular day, a margin deposit of only $1,000 might enable you to buy or sell a futures contract covering $25,000 worth of soybeans. Or for $10,000, you might be able to purchase a futures contract covering common stocks worth $260,000.
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| March 29, 2008 | | Hazards of inflation: Zimbabwe at 100,000%
Zimbabwe is a classic case of how inflation can make life hell for people. The basic flaw in Zimbabwe's economy is that Zimbabwe lost its ability to feed itself. India's wheat, rice, pulses and edible oil production is not enough to keep pace with the growth the country is witnessing. If inflation is not kept in check, India might go the Zimbabwe way. The situation in Zimbabwe has hit several Indians badly. Many of the Indian businessmen there find it difficult to do trade.
Of Budget, loans and soaring prices
The Central government hiked the minimum export price of non-Basmati rice from $650 to $ 1,000. As the govt struggles to rein in the rising inflation rates, it is clear that the farm loan waiver in the Budget is not a permanent solution. The cost of growing food is increasing each day and this will continue to push farmers to take loans to survive. To check inflation the govt will have to continue to control food prices. The move to waive farmer loans then seems meaningless.
Will India witness riots for daal-chawal?
India is heading for a major rise in food prices especially rice and pulses. Following the global trend and anticipating a shortage, Central government has raised the minimum price for non-Basmati rice exports. Other countries like Egypt and Cambodia have imposed restrictions on export of rice. With rice being staple food in many countries export restrictions will affect prices in the importing countries. These countries are already facing social unrest over high food prices.
Inflation redefines value of money
A common man understands that there is inflation when he buys his usual list of commodities from the market. A simple definition of inflation is an increase in prices and or decline in purchasing power. Over the years, the definition of inflation has undergone a change. In India, inflation is a political issue but a lower inflation rate does not guarantee success in elections. But, political parties need to go by public sentiments, which are often against a rising inflation.
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| March 27, 2008 | | Meeting water scarcity challenges
Provision of safe drinking water is considered today as fundamental to good governance to promote good health and welfare of the people. The states strive to resolve the issue involved in making safe drinking water accessible to all and to tackle the ever increasing concerns of depletion of ground water tables and quality problems that affect its sources. Considering the magnitude of the problem, the Central Government supplements the efforts of the State Governments in this
US recession: Commodities will struggle
Eben Esterhuizen, a financial news analyst and writer for The Panelist, asks the question of the month: is this the end of the commodity bull run? History suggests that commodity prices will move lower if the US enters a recession, and historical evidence also rejects the notion that emerging market growth will continue to support commodity prices during a US recession.
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| March 20, 2008 | | Is the bull run in commodities over?
Is the bull market in commodities over? The 75 per cent reduction in the Federal funds rate and big rally in the stock market has some wondering if the whole cycle of monetary stimulus may be almost finished.
How far away is the US recession
This is clearly the worst financial problem we've had since the Great Depression," as Joseph Stiglitz told a radio show in New Zealand on Wednesday morning.
Textile industry to create 45 million jobs
Minister of State for Textiles, E V K S Elangovan said the government expects an increase in employment of 45.19 million persons in the textile industry by the terminal year of the Eleventh Plan. Consequently, the total employment in the textile sector including allied industries is projected to increase to 105.39 million persons in 2011-12 from the present level of 88.02 million persons, resulting in a net addition of 17.37 million persons.
Will gold prices drop?
After a rally in gold that led to the international prices zooming to $1030 an ounce, will gold price reverse direction based on Wednesday's price level of $940?
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| March 19, 2008 | | Will edible oil export ban help rein in inflation?
The 'Ban Raj' is back. In an effort to rein in rising inflation, the Centre has banned export of all edible oils from the country.
APMCs helping farmers? Not really
A one day strike by the Agriculture Produce Marketing Committees of Gujarat on 18 March, 2008 protesting against taxing of marketing yards in the recent budget is much more than to do with any taxation. It is more to do with transparency.
A farmer's innovative success story
Successful boro cropping with record high yields has brought a degree of fame to Rajib
The man behind India's first power exchange
Jayant Deo, an expert in energy sector has been promoting the concept of power exchange, a common platform for buying and selling power under Electricity Act 2003. His efforts have been fruitful and India's first power exchange will go Live in the first quarter of 2008.
Inflation Vs Gold: Complementing each other
Monetary inflation causes price inflation, because an excess of money reduces the value of each monetary unit. But while almost everyone sees price inflation when it happens, few people notice the monetary inflation that causes it.
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| March 17, 2008 | | IEX to transform electricity trade in India
Indian Energy Exchange has joined world's leading power exchanges like Powernext (France), EEX (Germany, Northern Europe), PJM (USA), JEPX (Japan and Norway's Nordpool which is the largest power exchange in the world). IEX, India's first power exchange got its approval from CERC on August 31, 2007. It is promoted by Financial Technologies Ltd & PTC financial services, a wholly owned subsidiary of PTC India Ltd. Joseph Massey, Deputy MD of MCX, is in charge of the exchange.
Will the loan waiver help farmers?
Experts believe that waiving off farmers' loans is not the right solution to their problems. If the government puts this money in developing protected agricultural practices, drip irrigation facilities, creating aggregators for the farmers to play in the Futures market and teach them the modern farming methods, they will manage the rest. Farmers usually don't get loans from banks and have to go to moneylenders. They mortgage not just their land, but also homes and equipments.
'Nothing can stop the commodity market'
If a commodity market is to grow, nothing can stop it. We are in a market driven economy. You may keep it under wraps for some time but not long. Today, commodities market is very vibrant. I do not see any hostile institution in this market.
Investing? Go for commodities
Globally, from Jim Rogers to Warren Buffet, many investors now treat commodities as the best investment opportunity mainly because commodities are real assets.
Can Fed further boost rising gold prices?
Production from many gold producing regions of the world is currently constrained by power shortages; and rapidly inflating development costs are causing the postponement of several otherwise promising development projects around the world.
Will peak oil be a fuel for US recession?
The U.S. economy is also interdependent and in many ways dependent. Especially on oil. In a week where the Nymex price for a barrel of crude reached $111 this really should be apparent. Yet this does not seem to have deterred the recklessness driving the U.S. fiscal outlook.
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| March 13, 2008 | | Commodities are hot when stock market is shaky
Some of the hard and soft commodities in the resource universe are printing endless new highs, enriching producers. Analysts continue to deliver rosy forecasts and raise target prices on the commodities themselves and most of their related equities. Despite this fact, companies lower down in the food chain than the production level are not responding at all.
Commodity prices skyrocket in global market
According to the WB datat, February witnessed a 40 per cent rise in coal prices and 24 per cent in rice. To add to that fuel, food, fibre, and metals saw double-digit jump in global prices. Rice went up 24 per cent due to limited export supplies, deteriorating prospects for the next crop, and the impact of higher wheat prices. Lead jumped 18 per cent on falling stocks, strong battery demand in China, and weather-related supply reductions, also in China.
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| March 10, 2008 | | Does US face agricultural terrorism?
US experts were pondering on the safety of food imported into US from developing countries. In lieu of this thought process, a new trend has emerged in America of preferring locally produced food. This trend is affecting Wal Mart and Whole Foods too. It has been observed that when food travels far, the local community are the least benefitted out of the exports. But the trend to grow more locally will seriously affect nations that depend largely on agricultural exports.
Will gold fall or rise yet again?
Gold is nearing the psychological barrier of $1000. This is truly dismal picture for investors thinking in terms of the US dollar. But in term of Australian Dollar or the Japanese Yen or even British Pounds Sterling and Euro, the gold price rise is not so outrageous. The rampant rise in gold price can be attributed to the falling dollar, as the dollar is the only other thing that matches gold's security. One can hold gold simply to preserve wealth and as security instrument.
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| March 06, 2008 | | How to beat CTT to make money
With the introduction of CTT, commodity players raise their doubts about the fledgling futures market.
Why wealth is moving out of US
Following the declining dollar, investor nations are buying gold. There is a discernible return to Gold Standard in global trading from the current Dollar Standard.
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| March 03, 2008 | | After carbon credits, why not hydrogen credits?
When green house gas emissions began to shoot through the roof an innovative solution was found by introducing the concept of carbon credits. If you pollute you have to buy carbon credits which add to the company's operational expenses or cut emissions and create carbon credits that can be sold.
FMC opposes commodities transaction tax
On Sunday, exchanges and brokers got support against CTT from the apex commodities market regulator--the Forward Markets Commission. The regulator said that it would take up the demand for CTT withdrawal with finance minister Chidambaram.
How much gold does Reserve Bank hold in India?
In the wake of the Chinese war, it was felt in some circles that it would be feasible to make a frontal attack on demand for gold in India. Accordingly, the Gold Control Order 1962 was issued, banning the making and selling of jewellery above 14 carats, making it compulsory for gold smiths to be licensed and submit accounts of all gold received and utilized by them etc., The measures met with lot of resistance and criticism.
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| February 23, 2008 | | Interest rates: Time to think fresh?
Differing interest rates have always baffled common investors. May be it is time to take a fresh look at interest rates and their impacts.
Trading CEOs in futures market?
As the next step in futures market, traders can consider putting CEOs, bollywood stars and cricketers up for trading in the market.
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| February 20, 2008 | | Can India keep up the growth momentum?
The world economic scene is no longer as benign as it was in recent years, which saw many countries moving to a higher growth path in conditions of low interest rates and low inflation.
ATM: Any time milk machines!
Come to Gujarat's Anand town, the cradle of India's White Revolution. In a first of its kind, the Amul Dairy recently began trials for milk cards on its newly-installed milk vending machine in Anand. Now you can keep one more plastic card in your wallet and buy milk at any ATMs installed by the Amul Dairy.
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| January 30, 2008 | | Is the US credit crisis over?
The crisis in confidence in the banking sector is easing. Banks in Europe and America have taken substantial losses both in their proprietary trading departments and in their loan portfolios.
Why ArcelorMittal is not in favour of Steel Futures
ArcelorMittal does not favour futures trading in steel, as it could distort the prices of the commodity completely.
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| January 16, 2008 | | Will gold price crash in India?
Gold had hit an all-time high of Rs 11,492 on the Multi Commodity Exchange, the largest commodity bourse. The gold contract has gone up more than 7 per cent so far in 2008. Traders said the demand for gold is dull, as many people are expecting that the prices will come down.
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| January 15, 2008 | | Global oil shortage looms large
Global oil shortage is looming large. While the tug-of-war over oil is waging across the world, Hydrogen Regeneration can be a viable option.
What is the advantage in holding gold
When the western world went on holiday for Christmas the gold price looked as though it might attempt a drop to test $775 per ounce, potentially falling from just above $800.
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| January 08, 2008 | | Of gold and the bull market
James talks about the gold and silver markets, and shares his views on several interesting companies.
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| January 07, 2008 | | Which is world's most expensive spice?
It is saffron, (botanical name Crocus Sativus). Derived from the dried reddish-purple stigmas of the saffron crocus, it takes anything from 70,000 to 250,000 flowers to make one pound of saffron.
How $100 crude oil affects Indian cos
ONGC and Oil India might be hit because of this additional burden which they might have to take because of crude going to $100 per barrel.
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| January 05, 2008 | | Want to make money from rising oil prices?
As global tensions put pressure on the cost of crude oil, sending petrol prices above £1 a litre across the UK, This is Money investment writer Philip Scott investigates how investors can profit from rising oil prices.
Gold: The most glamorous commodity
Gold has tripled in price, from $270 an ounce to over $850. Still, it may have further to go. In real terms, given the massive devaluation of the dollar since 1980, gold is relatively cheap. It's not the bargain it once was, but it could move higher.
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| January 04, 2008 | | Gold versus oil, metals and currencies
When demand for the dollar outstrips the supply, the value of dollars goes up. But the supply of dollars has been rising steadily at an average of 10 per cent annually from less than $1 trillion in 1980 to over $12 trillion today -- and the fundamentals for gold today have much to do with the resulting drop in demand for dollars.
Oil politics, US and global economy
Close this undeniably, crude oil price levels have shot up considerably since the start of the year.
Shrinking dollar and surging gold
Want a racing certainty for the coming year? Take a look at the dollar and gold... Who can say what 2008 may bring? A post-Olympics crash in China, perhaps, tipping its near-10 per cent annual rate of expansion into an historic slump.
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| January 03, 2008 | | Gold price surges to record levels
Gold prices topped $860 an ounce Wednesday as a weak U.S. dollar coupled with a record-setting push to $100 oil spurred demand for the precious metal.
Hot commodities of 2007
It's time for the annual fest of figures and charts to review a selection of the key trends in 2007 for commodities and mining shares.
Know the commodities traded in global exchanges
Do you know which are the major commodity exchanges in the world, and what are the commodities traded in each bourse?
Gold: The most happening commodity in 2008
Gold bugs celebrated the immediate returns, and remain confident the returns will continue throughout 2008 - but some near-term volatility may be in the books.
Commodities: A preview of 2008
2008 is the year of the rat. The Chinese Zodiac says the year of the rat will be volatile for commodities and equities. However 2008 is the year of the Earth Rat, which is prosperous for the earth and metal industries.
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