Gold Price Firm as India Faces GST, Deficits at Issue for Platinum Week

IMG Auteur
 
Published : May 16th, 2017
476 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire
GOLD held firm with silver and platinum prices on Tuesday morning, trading at $1234 per ounce as world stock markets followed Wall Street higher and commodities extended their rise after crude oil jumped on Opec's promise of extended production cuts.
With gold 1.6% above last week's 2-month lows versus the Dollar, the price of silver rose back above $16.70 per ounce, gaining 4.0% from last Tuesday's low.
Platinum prices meantime held 4.3% above early May's new 2017 lows beneath $900 per ounce, trading at $935 in London's wholesale market.
Worth around one-twentieth the value of end-user demand for gold, the global platinum market will in 2017 see its first surplus of supply over demand after 5 years of deficits, according to refining and technology specialist Johnson Matthey.
Launching its latest PGM Market Report yesterday to mark the start of Platinum Week here in London, JM forecasts a surplus of 9.4 tonnes in 2017.
"The only year this decade that saw a sizeable deficit was 2014," counters independent consultancy Metals Focus, now forecasting a 9.8-tonne surplus in its new Platinum & Palladium Focus 2017, also launched at an event in the City on Monday.
Independent analysts SFA Oxford in contrast forecast another small deficit for 2017, narrowing to barely 2 tonnes on a 6% drop in global platinum demand and a 2% drop in supply.
24hGold - Gold Price Firm as I...
Presented yesterday by mining-backed market-development organization the World Platinum Investment Council, SFA's data recorded a deficit of 9.3 tonnes for the first quarter of 2017 alone, driven by a retreat in Zimbabwe's mine output, plus an increase in mining producer inventories, held against the risk of future shutdowns.
"[The] fundamentals are offering up many reasons to consider and invest in physical platinum," says Paul Wilson, CEO of WPIC, adding that automotive demand for platinum in diesel-engine catalysts remains robust, particularly in Western Europe.
"This will surprise some investors given the continued media coverage related to the banning of diesel vehicles from city centers."
Officials in world No.2 gold consumer India are meantime looking at the launch of an official bullion exchange, according to a senior industry figure, aimed at formalizing the country's huge gold sector.
"We are working on a gold exchange for India," Bloomberg quotes P.R.Somasundaram of the mining-backed World Gold Council. "The finance ministry has formed a gold committee."
India's gold jewelry sector – perhaps employing 3 million people on some estimates – faces tighter profit margins and possible closures however on this summer's standardization of General Sales Tax across India, warns an industry leader.
Risking a move by consumers into the 'grey market' if set above 2%, "Once GST is in place, the jewelry wholesalers will get eliminated," reckons Surendra Mehta, national secretary of the Indian Bullion & Jewellers Association.
You can receive your first gram of Gold free by opening an account with Bullion Vault : Click here.
Data and Statistics for these countries : Georgia | India | Zimbabwe | All
Gold and Silver Prices for these countries : Georgia | India | Zimbabwe | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
The London Gold Market Report is the daily market review from BullionVault, the world's largest physical gold and silver market for private investors. A full member of professional trade body the London Bullion Market Association, BullionVault publishes the LGMR every day that the market is open, bringing you insider comment and analysis from the very center of the world's $240 billion-a-day physical gold trade, and putting the latest gold price action into its wider financial and economic context. Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Peter Schiff Warns Of CRASH: ‘Everybody Is Going To Get Wiped Out!’
08 DecThe Recusant
"Schiff also said no one knows when this is going to happen for sure, only that it will happen." Peter has been warning of the next crash for years...
Meet The World’s Most Powerful Bitcoin Backers
07 Decsonora69
Why run a business or work for one when you can mine bitcoins for the price of the servers and electricity? The higher the price of bitcoin, the mo...
What Now?
04 DecDoom
Mathematically, doubling down is an amazingly powerful strategy...until it isn't. http://professorconfess.blogspot.com/2017/11/doubling-do...
The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks F...
03 DecS W.
I put the Flat Earthers in the same category as those who believe there is a God, a Heaven and a Hell.
Whipping-Post Politics
02 DecMr. Gnawbone1
I couldn't agree more, Keillor's dismissal was a bridge too far, but it is reflective of the fear, by Boards of Directors across the US, guiding ...
The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks F...
30 Novprljr1
The majority of Humans are ignorant. Private central banking is a prime example of what the majority will swallow as a working financial syste...
Bitcoin’s Inconvenient Truths: The Silence Is Deafening - Dave Kran...
30 Novstew temby
Dave I agree with your analysis but there are a maybe a couple of outstanding differences. First, the BTC community may reject the derivative rig c...
Why It's Important to Define Money Correctly
29 Novkevthorne
A quote: "Money is gold, and nothing else" - J. P. Morgan, 1912. There is an important definition within that statement. Nowadays, many repea...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS