Tuesday, 27 December 2011

Satyajit Das: The Cultural Transformation of the World of Finance (1/6)

by INETeconomics on Dec 22, 2011

When Satyajit Das started to work at a commercial bank, the world of finance was simple: banks made money by lending it. That was 44 years ago, and the tools of the trade have changed quite a bit since then. In this INET interview with Robert Johnson, Das describes some of the cultural changes that transformed the world of finance from the perspective of a practitioner and shows how traders of the "School of Hard Knocks" were replaced by a generation of traders that came straight from business school and overly relied on models and financial theory.

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

Business Line : Markets News : Gold should form 10-15% of asset allocation: IDBI Mutual

Gold should form 10-15% of asset allocation: IDBI Mutual

No secular reason why gold prices should decline

MUMBAI, DEC. 26:

Gold should form an important part of asset allocation of every investor as it is a meaningful asset option especially in times of uncertainty, a top official of IDBI Asset Management Ltd said.

“Everyone should have a sizeable amount, at least 10-15 per cent holding in gold as a prudent asset diversification strategy,” Mr Debasish Mallick, Managing Director and Chief Executive Officer, told Business Line.

In long-term financial planning, it is prudent to hold various assets and gold should be one of these, he said.

The fund house is the latest entrant to India's growing gold exchange traded fund market.

SAGE HAVEN OPTION

It mobilised Rs 110 crore in the gold ETF new fund offer that it launched during Diwali and has had the highest collection till date, Mr Mallick said.

Gold ETFs in India has seen substantial growth every year as the yellow metal has proved itself as a safe haven investment option.

“Gold ETF is the best buy option instead of physical gold. There is no wealth tax, you can sell anytime,” Mr Prithviraj Kothari, President, Bombay Bullion Association, said. According to him, it is a safe method of holding gold.

While Mr Mallick declined from making any gold price projection, he said, the global macro-economic situation remains uncertain. The yellow metal is seen as a safe haven asset and a hedge against inflation...

http://www.thehindubusinessline.com/markets/article2749957.ece?homepage=true&ref=wl_home

Gold prices may be down, but analysts predict rise in 2012 | Alaska Dispatch

Gold prices may be down, but analysts predict rise in 2012

Michail Vafeiadis | The Christian Science Monitor | Dec 25, 2011

What is it with gold?

Spot gold prices soared to a record above $1,900 an ounce in early September, dipped below $1,600 late in the month, rebounded strongly, and then fell below $1,600 again last week. That's a 16 percent decline in three months, although the shiny metal is still up for the year.

Will the decline continue into 2012?

It could. Concerns about the euro debt crisis have sent investors scrambling to buy dollars as a haven from risk, rather than gold, which has caused the dollar price of gold to fall. When gold prices fell below their 200-day average last week, a technical sell signal, prices broke below $1,600 although they have recovered a little since then.

"What is surprising is that in an environment where headline risk news is bigger than ever, gold has actually fallen from its highs," Christoph Eibl, CEO and founding partner of the Swiss commodity hedge fund Tiberius, told Reuters.

With the euro debt crisis virtually certain to extend into the new year and the US economy still weak, keeping inflation tame, many analysts see gold prices could fall further. Yet, they do not anticipate any precipitous fall since gold serves as a kind of ballast to market volatility and as a store of value.

Looking further into 2012, many analysts are bullish on the precious metal.

For technical buyers, the signal could come early, if gold can break above its 200-day average of about $1620 an ounce......

http://www.alaskadispatch.com/article/gold-prices-may-be-down-analysts-predict-rise-2012

Gold prices to see consolidation in first-half of 2012 - Business Today

Gold prices to see consolidation in first-half of 2012

B.S. Srinivasalu Reddy Mumbai December 27, 2011

The year 2012 may give an opportunity to investors and households to increase their investments in gold at a relatively low level of Rs 25,000-25,500 for 10 gm. Those who have missed the bus earlier could wait for this opportunity before June.
"We suggest investors to buy gold, even in bulk, at Rs 25,000-25,500 per 10 gm during 2012, when the price of the precious metal consolidates in the first half. At this level, it would not have much of a downside risk, but would have high probability of going up," said Naveen Mathur, associate director-commodities and currencies of Angel Broking

In the first-half of 2012, gold prices are expected to witness consolidation as a sharp upside will be restricted on account of the ongoing economic uncertainty.

"However, by the second half of the year prices could witness a bounce back as by then the global economy will receive clarity over the lingering European debt crisis and an improving US economy, thus helping investors allocate investments with 'caution' taking a back seat," Mathur added.

Gold has marked its eleventh annual consecutive rise this year, despite falling sharply from its all-time high of $1,920/oz. It has gained 12 per cent in the dollar-denominated international markets, which dictate gold prices across the world, including India, from the opening level of $1,420.8 per troy ounce (31.1034 gm). It was trading at $1,606 per troy ounce when the market broke for year-end holidays last week......
http://businesstoday.intoday.in/story/gold-prices-movement-in-2012/1/21228.html

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

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