Latest news with #WorldGoldCouncil
Yahoo
16 hours ago
- Business
- Yahoo
Sidheshwar Shirsath, centre, sits with his wife, Manisha, and their son, Soham, 6, as they examine gold jewelry in their Mumbai home. Shirsath, who works as a driver, began buying the jewelry nine years ago as a solid investment for his family's future. In recent months, the price of gold has skyrocketed.
Sidheshwar Shirsath, who lives in the suburbs of India's financial capital, Mumbai, first started buying gold when he got married nine years ago. Shirsath, 35, works as a driver and earns about 55,000 rupees ($889 Cdn) a month. He decided that gold might be a good way to build a nest egg for his family's future. Whenever he had some cash to spend, he purchased gold jewelry, including rings and bangles, and he now has about 130 grams of gold, worth more than one million rupees ($16,000 Cdn). "Sometime after I first bought gold, the rates started increasing, so my interest in investing in it also grew," Shirsath said. In recent months — to his delight — the price has skyrocketed. Gold globally was trading at $3,298 US an ounce on Friday morning, up more than 25 per cent since the start of the year, and up 42 per cent compared with a year ago. Gold's value globally has surged amid global economic uncertainty and geopolitical tensions, including concerns about the impact of U.S. President Donald Trump's tariff policy. The precious metal is often seen as a "safe haven" asset that investors flock to during periods of economic turbulence. In India, the price has risen even more sharply and is up 30 per cent since the beginning of the year — with the additional increase driven by the rupee's depreciation against the American dollar. But for many Indians, like Shirsath, gold is more than an investment. "Gold is very close to Indian women," he said, his wife, Manisha, sitting next to him in their modest home, adorned with a heavy gold choker and gleaming bangles. "They need gold — especially for festivals and weddings." In India, gold is primarily purchased it in the form of jewelry because it can be a way of showing off one's wealth and status. The precious metal also holds enormous religious and cultural significance. It is part of the dowry in weddings, for example, and it is considered to be auspicious to buy gold during certain Hindu festivals. "India is a very unique market for gold ," said Sachin Jain, regional CEO, India, for the World Gold Council, a global industry association. "Gold is a part of the social fabric, and you don't need to be in any particular economic strata to consume gold. "We all in India have a family doctor, so to say, and we have a family jeweller." In rural India, where most of the country's 1.4 billion people still live — and with many not having easy access to bank accounts — gold is a popular way of storing savings, Jain said. All of this means that India is one of the world's largest consumers of gold, with the country's demand for the precious metal hitting about 800 tonnes a year. The steep price, however, is having an impact on the quantity of the metal that people are buying. "With jewelry consumption, whenever the price of gold goes up, the consumer waits and watches," Jain said. "The moment it gets a bit settled, we see consumers come back." The World Gold Council's data shows that demand for gold in India in the first three months of this year stood at 118.1 tonnes, down by 15 per cent compared with the first quarter of last year. But because the price is up, the value of the country's gold demand — which is the quantity of gold that is bought or invested — in the first quarter of this year actually rose by 22 per cent, to reach 940 billion rupees ($15.1 billion Cdn). "People are buying lower quantities," said Colin Shah, managing director of Kama Jewelry, a Mumbai-based manufacturer. "They all have budgets. If someone has $2,000 to spend, they'll spend that and buy a lower volume." But, he said, that gold has by no means lost its shine, despite its high price. "In India, there is a culture of gold, and nobody is going to stop buying gold because of pricing," Shah said. "Actually, they'll have more confidence in the category due to the return they are making on their money." With Indians' appetite to own gold showing no signs of easing, the government in recent years has taken a series of steps to try to ensure that gold is brought into the formal economy. These include lowering the import duty on gold last year to six per cent from 15 per cent, partly as a way of making it less attractive for people to smuggle gold into the country to avoid paying high taxes. The government also offers sovereign gold bonds as an alternative to physical gold. The World Gold Council's Jain said that Indians are increasingly investing in gold digitally, for example, through exchange-traded funds (ETFs) — and the price surge has only encouraged people to look at these options. "The young generation is getting more and more savvy, and with the ease of technology, we believe that investment into gold and gold assets is going to get a little more digital," he said. Gold investment demand, including ETFs, rose by seven per cent in India to 46.7 tonnes in the first quarter, according to the World Gold Council. JPMorgan forecasts that the price of gold could hit $4,000 US an ounce next year. Shirsath said that he and his family have more than enough jewelry now, but he still wants to keep buying gold. "My next plan is to buy gold coins or go for bonds." WATCH | Big box stores offer gold to customers as its popularity heats up: Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Gold is part of India's social fabric. As prices soar, customers watch, wait but, ultimately, still buy
Sidheshwar Shirsath, who lives in the suburbs of India's financial capital, Mumbai, first started buying gold when he got married nine years ago. Shirsath, 35, works as a driver and earns about 55,000 rupees ($889 Cdn) a month. He decided that gold might be a good way to build a nest egg for his family's future. Whenever he had some cash to spend, he purchased gold jewelry, including rings and bangles, and he now has about 130 grams of gold, worth more than one million rupees ($16,000 Cdn). "Sometime after I first bought gold, the rates started increasing, so my interest in investing in it also grew," Shirsath said. In recent months — to his delight — the price has skyrocketed. Gold globally was trading at $3,298 US an ounce on Friday morning, up more than 25 per cent since the start of the year, and up 42 per cent compared with a year ago. Gold's value globally has surged amid global economic uncertainty and geopolitical tensions, including concerns about the impact of U.S. President Donald Trump's tariff policy. The precious metal is often seen as a "safe haven" asset that investors flock to during periods of economic turbulence. In India, the price has risen even more sharply and is up 30 per cent since the beginning of the year — with the additional increase driven by the rupee's depreciation against the American dollar. But for many Indians, like Shirsath, gold is more than an investment. "Gold is very close to Indian women," he said, his wife, Manisha, sitting next to him in their modest home, adorned with a heavy gold choker and gleaming bangles. "They need gold — especially for festivals and weddings." In India, gold is primarily purchased it in the form of jewelry because it can be a way of showing off one's wealth and status. The precious metal also holds enormous religious and cultural significance. It is part of the dowry in weddings, for example, and it is considered to be auspicious to buy gold during certain Hindu festivals. "India is a very unique market for gold ," said Sachin Jain, regional CEO, India, for the World Gold Council, a global industry association. "Gold is a part of the social fabric, and you don't need to be in any particular economic strata to consume gold. "We all in India have a family doctor, so to say, and we have a family jeweller." In rural India, where most of the country's 1.4 billion people still live — and with many not having easy access to bank accounts — gold is a popular way of storing savings, Jain said. All of this means that India is one of the world's largest consumers of gold, with the country's demand for the precious metal hitting about 800 tonnes a year. The steep price, however, is having an impact on the quantity of the metal that people are buying. "With jewelry consumption, whenever the price of gold goes up, the consumer waits and watches," Jain said. "The moment it gets a bit settled, we see consumers come back." The World Gold Council's data shows that demand for gold in India in the first three months of this year stood at 118.1 tonnes, down by 15 per cent compared with the first quarter of last year. But because the price is up, the value of the country's gold demand — which is the quantity of gold that is bought or invested — in the first quarter of this year actually rose by 22 per cent, to reach 940 billion rupees ($15.1 billion Cdn). "People are buying lower quantities," said Colin Shah, managing director of Kama Jewelry, a Mumbai-based manufacturer. "They all have budgets. If someone has $2,000 to spend, they'll spend that and buy a lower volume." But, he said, that gold has by no means lost its shine, despite its high price. "In India, there is a culture of gold, and nobody is going to stop buying gold because of pricing," Shah said. "Actually, they'll have more confidence in the category due to the return they are making on their money." With Indians' appetite to own gold showing no signs of easing, the government in recent years has taken a series of steps to try to ensure that gold is brought into the formal economy. These include lowering the import duty on gold last year to six per cent from 15 per cent, partly as a way of making it less attractive for people to smuggle gold into the country to avoid paying high taxes. The government also offers sovereign gold bonds as an alternative to physical gold. The World Gold Council's Jain said that Indians are increasingly investing in gold digitally, for example, through exchange-traded funds (ETFs) — and the price surge has only encouraged people to look at these options. "The young generation is getting more and more savvy, and with the ease of technology, we believe that investment into gold and gold assets is going to get a little more digital," he said. Gold investment demand, including ETFs, rose by seven per cent in India to 46.7 tonnes in the first quarter, according to the World Gold Council. JPMorgan forecasts that the price of gold could hit $4,000 US an ounce next year. Shirsath said that he and his family have more than enough jewelry now, but he still wants to keep buying gold. "My next plan is to buy gold coins or go for bonds." WATCH | Big box stores offer gold to customers as its popularity heats up: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Gold Likely to Shine More on Demand Supply Imbalance: 5 Top Picks
Gold prices have been witnessing a northward journey in recent months, benefiting the stocks associated with yellow metal mining. On May 5, the spot gold price touched $3,415.57/ounce and it thereafter it stayed around $3,300/ounce. Stock prices of several gold miners have jumped year to date. The surge in gold price was driven by investor concerns over the U.S. government's escalating debt, weak demand for long-term treasury bonds and a declining dollar. The northward journey of the yellow metal is likely to continue as the World Gold Council said that the gold mining industry is suffering from a scarcity of the yellow metal deposits. On the demand side, several central banks of emerging economies are continuously buying the yellow metal. Moreover, the use of gold in energy, healthcare and technology is rising. Therefore, an eventual demand-supply imbalance is likely to drive gold prices. At this stage, it should be fruitful to invest in gold mining stocks with a favorable Zacks Rank. Five such stocks are: Franco-Nevada Corp. FNV, Newmont Corp. NEM, Kinross Gold Corp. KGC, Royal Gold Inc. RGLD and Agnico Eagle Mines Ltd. AEM. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Central banks across the world are in the process of cutting interest rates in order to spur economic growth. A low market interest rate is beneficial for non-income-bearing bullions like gold. Moreover, a weak U.S. dollar has increased demand for dollar-denominated bullions like gold. The prolonged geopolitical conflicts between Russia and Ukraine the intensified war between Israel and Hezbollah, and political unrest in some major South-east Asian countries are concerns for the global political atmosphere. In this situation, the price of gold should remain buoyant as the yellow metal is known as a safe-haven investment. Market participants are optimistic about the gold mining industry's prospects. Giant investment bankers like Goldman Sachs and JP Morgan have forecasted that gold prices could climb to $4,000/ounce by 2026, suggesting continued bullish momentum. The chart below shows the price performance of our five picks year to date. Image Source: Zacks Investment Research Franco-Nevada is well-poised to deliver strong earnings growth aided by increased contributions from its streaming agreements. Contribution from buyouts and a healthy portfolio of royalty and streaming agreements will aid the growth of FNV. Even though the company has been facing lower output due to the production halt in Cobre Panama, it is likely to be offset by FNV's continued focus on cost management. FNV has a debt-free balance sheet and uses its free cash flow to expand the portfolio and pay out dividends. Gold prices have been on an uptrend in 2025, aided by geopolitical reasons, and the potential for monetary policy easing. This rise in gold price will also boost the results of FNV in the coming quarters. Franco-Nevada has an expected revenue and earnings growth rate of 31.5% and 29.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days. Newmont is making notable progress with its growth projects. NEM is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio providing opportunities for significant synergies. NEM also remains focused on improving operational efficiency and returning value to its shareholders. Newmont has received full funds approval for its Ahafo North project, which has reached the execution stage. Commercial production for the project is expected to commence in second-half 2025. NEM remains committed to Ghana, investing $950 million to $1,050 million in development capital for Ahafo North. Newmont has an expected revenue and earnings growth rate of 2% and 20.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the last seven days. Kinross Gold has a strong production profile and boasts a promising pipeline of exploration and development projects. These projects are expected to boost production and cash flow and deliver significant value. KGC is focusing on organic growth through its Tasiast mine, where the Phase One expansion boosted production capacity, and the Tasiast 24K expansion further increased throughput and production. KGC's Manh Choh project at Fort Knox is expected to extend operations and benefit from higher gold prices. The Great Bear project in Ontario also offers a promising long-term opportunity with substantial gold resources. Higher gold prices should also boost KGC's profitability and drive cash flow generation. Kinross Gold has an expected revenue and earnings growth rate of 15.3% and 63.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the last seven days. Royal Gold has been benefiting from its solid streaming agreements. RGLD maintains a strong balance sheet, which is likely to drive growth in the upcoming quarters. This rise in metal prices, like gold and silver, will boost RGLD's results in the coming quarters. Even though RGLD is facing higher interest costs, it will be offset by the tailwinds. RGLD is focused on allocating its strong cash flow to dividends, debt reduction and new businesses. In 2024, RGLD repaid $250 million of debt, effectively eliminating its total debt. This provides the company with the scope to strengthen its portfolio. Royal Gold has an expected revenue and earnings growth rate of 24.1% and 35.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the last 30 days. Agnico Eagle Mines is focused on executing projects that are expected to provide additional growth in production and cash flows. AEM is advancing its key value drivers and pipeline projects. The Kittila expansion promises cost savings, while acquisitions like Hope Bay and the merger with Kirkland Lake Gold strengthen AEM's market position. Merger with Kirkland Lake Gold established the new Agnico Eagle as the industry's highest-quality senior gold producer. Higher gold prices are also expected to drive AEM's margins. Strategic diversification mitigates risks, supported by prudent debt management and maintaining financial flexibility. Agnico Eagle Mines has an expected revenue and earnings growth rate of 23% and 42.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.3% over the last 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM) : Free Stock Analysis Report Kinross Gold Corporation (KGC) : Free Stock Analysis Report Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report Franco-Nevada Corporation (FNV) : Free Stock Analysis Report Royal Gold, Inc. (RGLD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
See - Sada Elbalad
4 days ago
- Business
- See - Sada Elbalad
Warnings of a Global Gold Rush Amid Escalating US Trade Tensions
Waleed Farouk As US President Donald Trump escalates trade pressure by announcing his intention to impose new 50% tariffs on European imports, a US think tank has warned that these policies could push several countries—particularly emerging markets—to adopt gold as an alternative to the dollar in the global financial system. According to an opinion piece published by Kimberly Donovan, director of the Economic State Initiative at the Atlantic Council, and Maya Nikoladze, deputy director, many countries have already begun to seek safe alternatives outside the dominance of the dollar, with gold at the forefront of these alternatives, whether through physical reserves or digital instruments backed by the precious metal. "Many countries, including US adversaries, are now using gold to circumvent US sanctions and finance activities that threaten US national security," the article states. Unprecedented Rise in Central Bank Gold Purchases The authors noted that central banks around the world continue to boost their gold reserves. Data from the World Gold Council showed that purchases during the first quarter of 2025 reached 243.7 tons, a 24% increase over the average of the past five years, despite a slowdown compared to the peak of purchases in 2022. Russia is a prominent example of this trend. The Russian Ministry of Finance is believed to be purchasing gold from domestic producers in an undisclosed manner to bolster its reserves. Gold is also used in informal trade with countries such as the UAE and Turkey, according to the report. Gold-Backed Digital Innovations: Cryptocurrencies Enter the Game The issue is no longer limited to gold reserves alone. Recent trends have emerged regarding the use of gold to create stablecoins. This month, the Ministry of Finance of Kyrgyzstan announced plans to launch a gold-backed stablecoin, USDKG, in the third quarter of 2025. The USDKG will be fully backed by gold reserves worth $500 million, with a goal of reaching $2 billion. Holders of the currency will be able to exchange it for gold, cryptocurrencies, or fiat currencies, enhancing the ability of this small country—where foreign remittances account for a third of its GDP—to conduct cross-border transactions without going through the US financial system. US Concerns Over Loss of Control Over the Global Financial System The report warns that gold-backed digital currencies—especially in countries subject to sanctions, such as Russia, or those with which it has financial ties—could be used as tools to evade Western sanctions, given the lack of US oversight. The report stated that Russian interest in the USDKG system in particular could be a means of accessing technologies subject to Western restrictions, through an alternative financial system that does not pass through the dollar or US banks. A Call to Rethink US Economic Policies In concluding the analysis, the authors urged the US administration to move away from punitive policies that push countries to seek alternatives to the dollar, particularly gold, and called for strengthening financial stability by supporting economically weak countries and expanding trade and investment ties with them. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies
Business Mayor
6 days ago
- Business
- Business Mayor
Despite interest surge in gold, institutional investors remain hesitant: Report
Despite a surge in interest around gold as a strategic hedge against market volatility and inflation, institutional investors remain hesitant to significantly increase their exposure, according to a report by Liechtenstein-based investment and asset management firm Incrementum. According to an analysis of the global markets, family offices allocate just one per cent of their portfolios to gold and precious metals, putting it on equal footing with niche assets like art, antiques, and infrastructure, and far behind more favoured categories such as private equity, real estate, and even cash. 'Despite growing interest in gold as a strategic asset, institutional allocations remain strikingly low. …Family offices allocate just one per cent of their portfolios to gold and precious metals, placing it on par with art and antiques, as well as infrastructure, and well below allocations to private equity, real estate, or even cash,' the report by Incrementum said. In recent months, gold has seen interest due to the instability arising out of trade tensions; however, the gold price has been witnessing a fall after a sharp rise witnessed over January-April 2025, in which gold prices had rallied by 25 per cent. The fall in prices reflects reduced anxiety about the trade war and subsequently reduced safe-haven appeal. Data released from the World Gold Council (WGC), although it is lagged, also shows the main sources of demand for gold that has been in place in the first quarter of 2025. Read More Best Driving Shoes For Men To Hit The Road In Style In this regard, investment-related demand for gold that increased by 170 per cent YoY in Q1 2025 underpinned the rally in the period as investors turned to the yellow metal in the face of uncertainty about the Trump policy regime and, in particular, about the trade war. As the trade-war anxiety has eased post the 90-day truce between the US and China, the subsequent demand for gold has reduced, which has driven prices lower. In Indian markets, the price of gold on Saturday reached again at 98,900.00 for 10 grams. Prices on May 17, as per the prices at MCX, were at Rs 92,480 for 10 grams. Gold prices in Indian markets have traded flat, responding to weakness in global prices and a mild appreciation of the INR against the USD that has taken place over the period. In volume terms, gold imports have fallen on a sequential basis as the country imported USD 3.1 bn worth of gold in April after importing USD 4.5 bn worth of gold in March, reflecting an easing in jewellery demand that has taken place in response to elevated prices.
