Monday May 28, 2018
Home Business Indians makin...

Indians making most from longest gold price slump

0
//
58
Republish
Reprint

New Delhi/Mumbai/Kolkata/Bengaluru, Even as gold may be losing its sheen in the global market, logging its longest weekly loss in terms of prices since 1999, the yellow metal still seems to be in favour across India with low prices luring people to buy, stakeholders maintain.

images (1)
If the footfalls at the India International Jewelry Show in Mumbai that concluded on Aug 11 is any indication, some brisk buying in gold has been reported. While the metal may no longer be an investment option, its lure has still not faded away from people’s psyche, experts added.

“If prices stabilize at these levels, we expect gold sales will be good during the Diwali season. People are not buying gold bars and coins as an investment option,” said Premjit Sengupta, chief marketing officer of Senco Gold in Kolkata. But demand for jewelry was good, he added.

From a peak of $1,900 per ounce in September 2011, spot gold prices dipped to a new five-year low of $1,086 in global markets past week, breaching the $1,100 barrier on signs of a recovery in the US economy, a fall in unemployment there and stock and debt marketing offering better returns.

This has resulted in the gold import bill for India, among the top three consumers of gold in the world, going down but demand remained robust. According to the World Gold Council, the demand in India in 2015 is expected at around 900-1,000 tonnes, against 891.5 tonnes in 2014.

Rajesh Khosla, managing director of MMTC-PAMP India, a gold and silver refining and minting joint venture between India’s state-run metals major and a reputed Swiss bullion brand, gold imports in fiscal 2015-16 could fall as much as 18 percent to $28 billion or so.

“With the price of gold decreasing from $1,250 to $1,100 per ounce in the past six months, import bill has decreased substantially. Thereby it has reduced stress on the current account deficit,” said Rajosik Banerjee, partner with KPMG in India,

“This will give more flexibility to the Reserve Bank of India to handle interest rates. Further, this price scenario may also lead to some realignment of portfolios,” he added.

Drawing comfort from the footfalls at the Mumbai exhibition, Pankaj Parekh, former vice-chairman, Gems and Jewellery Export Promotion Council, “We are experiencing phenomenal sales throughout the country.”

He said the situation was only going to improve in the coming months, as the festive season will be in full swing and people waiting for prices to fall more will take some decisions. “Globally, people have stopped buying. But in India they are waiting for prices to come within range.”

Sengupta sought to explain the reason why the past week has seen a slight slump in sales. “This is only normal, given how gold prices are reacting to market forces,” he said, adding since the interest is in jewelry, and not bars or coins, people are waiting for the festive season.

Little wonder Khosla estimates India’s gold imports in July at 70-75 million tonnes, as against 57 tonnes in June. “Jewelers have started stocking up for the festive season.”

(IANS)

Click here for reuse options!
Copyright 2015 NewsGram

Next Story

Diesel Exhaust Converted Into Ink by Indian Innovators To Battle Air Pollution

Supervised by young engineers, workers at the start-up company Chakr Innovation in New Delhi cut and weld sheets of metal to make devices that will capture black plumes of smoke from diesel generators and convert it into ink.

0
//
13
representational image. VOA

Supervised by young engineers, workers at the start-up company Chakr Innovation in New Delhi cut and weld sheets of metal to make devices that will capture black plumes of smoke from diesel generators and convert it into ink.

In a cabin, young engineers pore over drawings and hunch over computers as they explore more applications of the technology that they hope will aid progress in cleaning up the Indian capital’s toxic air – among the world’s dirtiest.

While the millions of cars that ply Delhi’s streets are usually blamed for the city’s deadly air pollution, another big culprit is the massive diesel generators used by industries and buildings to light up homes and offices during outages when power from the grid switches off – a frequent occurrence in summer. Installed in backyards and basements, they stay away from the public eye.

“Although vehicular emissions are the show stoppers, they are the ones which get the media attention, the silent polluters are the diesel generators,” says Arpit Dhupar, one of the three engineers who co-founded the start up.

The idea that this polluting smoke needs attention struck Dhupar three years ago as he sipped a glass of sugarcane juice at a roadside vendor and saw a wall blackened with the fumes of a diesel generator he was using.

It jolted him into joining with two others who co-founded the start-up to find a solution. Dhupar had experienced first hand the deadly impact of this pollution as he developed respiratory problems growing up in Delhi.

An Indian girls holds a banner during a protest against air pollution in New Delhi, India, Nov. 6, 2016.
An Indian girls holds a banner during a protest against air pollution in New Delhi, India, Nov. 6, 2016.

A new business

As the city’s dirty air becomes a serious health hazard for many citizens, it has turned into both a calling and a business opportunity for entrepreneurs looking at ways to improve air quality.

According to estimates, vehicles contribute 22 percent of the deadly PM 2.5 emissions in Delhi, while the share of diesel generators is about 15 percent. These emissions settle deep into the lungs, causing a host of respiratory problems.

After over two years of research and development, Chakr has begun selling devices to tap the diesel exhaust. They have been installed in 50 places, include public sector and private companies.

The technology involves cooling the exhaust in a “heat exchanger” where the tiny soot particles come together. These are then funneled into another chamber that captures 70 to 90 percent of the particulate matter. The carbon is isolated and converted into ink.

Among their first clients was one of the city’s top law firms, Jyoti Sagar Associates, which is housed in a building in Delhi’s business hub Gurgaon.

Making a contribution to minimizing the carbon footprint is a subject that is close to Sagar’s heart – his 32-year-old daughter has long suffered from the harmful effects of Delhi’s toxic air.

Motorists drive surrounded by smog, in New Delhi, India, Nov. 8, 2017.
Motorists drive surrounded by smog, in New Delhi, India, Nov. 8, 2017.

“This appealed to us straightaway, the technology is very impactful but is beautifully simple,” says Sagar. Since it could be retrofitted, it did not disrupt the day-to-day activities at the buzzing office. “Let’s be responsible. Let’s at least not leave behind a larger footprint of carbon. And if we can afford to control it, why not, it’s good for all,” he says.

At Chakr Innovation, cups, diaries and paper bags printed with the ink made from the exhaust serve as constant reminders of the amount of carbon emissions that would have escaped into the atmosphere.

There has been a lot of focus on improving Delhi’s air by reducing vehicular pollution and making more stringent norms for manufacturers, but the same has not happened for diesel generators. Although there are efforts to penalize businesses that dirty the atmosphere, this often prompts them to find ways to get around the norms.

Also Read: Exposure to Traffic-Related Pollution Poses Threat of Asthma in Kids

Tushar Mathur who joined the start up after working for ten years in the corporate sector feels converting smoke into ink is a viable solution. “Here is a technology which is completely sustainable, a win-win between businesses and environment,” says Mathur. (VOA)