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India buys half of IMF's gold for sale

MUMBAI/WASHINGTON, Nov 3 (Reuters) - The International Monetary Fund has sold 200 tonnes of gold to the Reserve Bank of India for $6.8 billion, quietly executing half of a long-planned bullion sale that has threatened to slow gold's ascent.

The sale, which surprised traders who expected China to be the leading buyer, will relieve the gold market of some uncertainty over how and when the IMF would sell 403.3 tonnes of gold, about one-eighth of its total stock. The deal will increase India's gold holdings to the tenth largest among central banks.

It also fuelled speculation that other governments -- including Beijing -- may be ready to diversify their reserves even at near-record gold prices, helping soak up IMF supply that the fund may otherwise be forced to sell on the open market.

"Central banks in India and China will be happy to accumulate gold at these levels. I will not be surprised to see even some Southeast Asian banks buying gold," Aaron Smith, Asia head of the $1.65 billion technical trading fund Superfund, told Reuters.

For graphics on the world's top gold reserve holders: here

Spot gold prices XAU= rose about $4 to $1,063 an ounce on Tuesday, just shy of last month's $1,070.40 record high, aided primarily by a falling U.S. dollar. Traders said the IMF news could add to the market's upward momentum. [GOL/]

"The fact that they've sold the gold to India would suggest there's going to be fewer official sales by the IMF on the market. So that might be a positive theme for the gold price," said David Moore, commodities strategist at Commonwealth Bank of Australia.

SURPRISE BUYER

Although the IMF's plan to sell a share of its gold holdings in order to increase low-cost lending to poor countries had been flagged for a year before it was formally approved in September, both the speed of the deal and the buyer were a surprise.

Although India is the world's biggest consumer of gold, primarily in the form of jewellery and investment among its billion-plus people, its central bank had given few indications of being a front-runner in the move to diversify into bullion.

The proportion of gold as part of its total foreign reserves had fallen over the past decades, officials said.

India's foreign exchange reserves held at the central bank totalled $285.5 billion on Oct. 23, of which gold comprised just over $10 billion. The latest purchase will lift its share of gold holdings from near 4 percent to about 6 percent, much less than most of the developed world but four times China's share.

For a graphic on the share of gold in central bank reserves: here

Former Reserve Bank of India Governor Bimal Jalan said the move was aimed at boosting resources for the IMF as both India and China had promised to help raise "fungible resources" to help other developing countries.

"This transaction is an important step toward achieving the objectives of the IMF's limited gold sales program, which are to help put the fund's finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries," the IMF's managing director, Dominique Strauss-Kahn, said in a statement on Monday.

The Reserve Bank of India said the purchase was an official sector off-market transaction and was executed during Oct. 19-30 at market-based prices.

An IMF official said the sale was concluded at an average price of about $1,045 an ounce and that the transaction would be paid in hard currency and not in IMF Special Drawing Rights.

NO MARKET DISRUPTION

A senior IMF official, speaking on condition of anonymity, declined to say whether other central banks have expressed interest in buying the remaining gold for sale.

He said if no other central banks came forward, the IMF would proceed as planned to sell the gold in the market, but reiterated that the fund would publicize its intentions before doing so to avoid disrupting the market.

Still, the threat of further open-market sales remains a medium-term source of concern for gold traders, mindful of the five-year pact among European central banks to sell down a maximum 400 tonnes a year of their holdings, an agreement that was renewed in August and includes the IMF volume. [ID:nN02468120]

The market's focus has now shifted to China, which has reportedly been in talks with the IMF about buying some of the fund's bullion as Beijing seeks to shift some of its more than $2 trillion in foreign exchange reserves away from the U.S. dollar.

"Now people may think China will buy the other half," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

Already the world's top producer of gold and rivalling India as a consumer, China revealed this year that it had quietly lifted its own government holdings of gold stocks to 1,054 tonnes from 400 tonnes when it last reported its holdings in 2003.

It is the first time since 2000 that the IMF has sold gold to a central bank. Between December 1999 and April 2000 in separate transactions, the IMF sold a total of 12.9 million ounces of gold to member countries Brazil and Mexico.

WRAPUP 1-India buys half of IMF's gold for sale; who's next? | Markets | Bonds News | Reuters

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India's Economy To Grow 8% In FY11: Planning Commission

India's economy is likely to achieve a growth of 8% in fiscal 2011 from an estimated growth of 6.3% in the current fiscal, reported the media quoting Planning Commission. The Planning Commission also forecast that the Indian economy will register a growth rate of 9% in 2011-12 and 10% in 2014-15.

The Planning Commission made these assumptions while estimating government finances. It said that the global slowdown has pushed India's growth to 6.7% in fiscal 2009 from about 9% in the year ago. The economy expanded 6.1% in the first quarter of this fiscal and is likely to drop in the second quarter before picking up.

The Government and the Reserve Bank of India came out with various stimulus measures like tax cuts and making available liquidity to cash-starved industries to weather the impact of the global crisis. However, the stimulus measures, which included tax cuts and increase in plan expenditure to encourage growth, widened the fiscal deficit to 6.2% last year. The deficit is estimated at 6.8% this year as the government continues the stimulus measures raising expenditure to over Rs.10 lakh crore.


RTTNews - Economic News, Economic Reports, Global Economic News,Global Economic Reports, Economic Market Analysis...
 
India still likes dollars despite buying gold: FM


3 Nov 2009, 2000 hrs IST, AGENCIES


Print EMail Discuss Share Save Comment Text:



NEW DELHI: A decision by the Reserve Bank of India to buy 200 tonnes of gold from the IMF for $6.7 billion does not reflect a preference for the How to invest in gold
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metal over the dollar, the finance minister said Tuesday.

The International Monetary Fund kicked off its planned sale of more than 400 tonnes of gold with an announcement Monday that it had sold almost half to India, the world's biggest gold consumer, at near-record prices. :woot::smokin:
The purchase "doesn't mean we don't prefer the dollar any more or like gold any better," Finance Minister Pranab Mukherjee told reporters in New Delhi.

Some analysts expect central banks around the world to diversify their holdings and purchase more gold as a shield against a weakening dollar.

The bank said in a statement that the purchase "was done as part of the Reserve Bank's foreign exchange reserves management operations".

The central bank's stock of the precious metal increased to 557 million tonnes from 357 tonnes, a jump of over 55 percent.

The bank said the purchase "was an official sector off-market transaction and was executed over a two-week period during October 19-30, 2009 at market-based prices".

The IMF is selling the gold to raise resources to augment its operations and provide concessional loans to poor countries.

Its current gold stock of 357 tonnes is valued at around $9.6 billion.

A senior IMF official said that the IMF was "lucky" in selling the 200 tonnes to India for roughly 1,045 dollars an ounce, compared with 850 dollars an ounce in April 2008.

India is the world's biggest consumer of gold, importing between 700 and 800 tonnes of the metal every year or 20 percent of global demand.
 
India Breach 500-mn Subscribers Mark
By CXOtoday Staff
Mumbai, Nov 02, 2009 1231 hrs IST

India has officially scaled past the 500-million subscriber base mark for all the telecom services in September ahead of the targeted period of 2010.:whistle::victory:


India has achieved an overall teledensity of 44%.
:partay:


The country is estimated to cross the 500-million mark for mobile services as well by December this year,:agree: said Union Communications Minister A Raja.


"The consistent efforts both by the government and the industry have helped in reducing the high imbalance of rural-urban divide ratio from 1:10 to 1:5 in a short span of three years and the rural teledensity jumped from 4.5% to 19%,:cheers:" Raja said.


The minister further informed that 6,500 mobile towers out of 7,500 towers of phase-I with subsidy support from USO Fund have already started radiating. USOF is also coming with various schemes including laying of dark fibre in a big way for creating adequate backhaul infrastructure in rural area.


"I am happy that the private sector has started participating in rural sector in a much bigger way and they now account for 80% of the rural telecom market. I am sure that the continued participation by the private sector will help us in achieving the government target of 40% rural teledensity well before the set timeline of 2014," Raja said.
 
RBI earns 14900 carore in 24 Hours


gold price when RBI bought 200 ton gold was US$ 1045 per ounce
gold price after 24 hours US$ 1090 per ounce. 45 US$ net profit.
1 ounce gold = 28.35 gram gold
1 ounce gold price = US$ 1,090
1 gram gold price = US$ 38.45
1 US Dollar = INR 47.00
Local price of 1 gram gold = INR 1807.00
10 gram gold = INR 18,070.00
India's profit per 1 gram = INR 745.00
100 gram profit = INR 74,500.00
1 kg profit = INR 7.45 Lacks
1 Ton profit = INR 74.50 carore
100 Ton profit = INR 7450 carore
200 Ton profit = INR 14,900 carore
:yahoo:
 
keep tracking - it might go down

RBI earns 14900 carore in 24 Hours


gold price when RBI bought 200 ton gold was US$ 1045 per ounce
gold price after 24 hours US$ 1090 per ounce. 45 US$ net profit.
1 ounce gold = 28.35 gram gold
1 ounce gold price = US$ 1,090
1 gram gold price = US$ 38.45
1 US Dollar = INR 47.00
Local price of 1 gram gold = INR 1807.00
10 gram gold = INR 18,070.00
India's profit per 1 gram = INR 745.00
100 gram profit = INR 74,500.00
1 kg profit = INR 7.45 Lacks
1 Ton profit = INR 74.50 carore
100 Ton profit = INR 7450 carore
200 Ton profit = INR 14,900 carore
:yahoo:
 
yes it might go down. but in a long run it will go surely up.
Trust me on this. I'm Gujju...:D I know better.:agree:
Kem Cho Gujju Bhai! Om NaMo Namah - if you get me.

It doesnt really matter whether gold goes up or down. Its a long term acquisition by India. The most important thing right now is to reduce the Dollar holdings because we all know where it is heading.
 
Kem Cho Gujju Bhai! Om NaMo Namah - if you get me.

It doesnt really matter whether gold goes up or down. Its a long term acquisition by India. The most important thing right now is to reduce the Dollar holdings because we all know where it is heading.

Om NaMo Namah!
your evaluation is right.;)
 
More Indians graduate in maths, science than in US, Japan

India's infrastructure on education may have a long way to go to reach global standards, but when it comes to the sheer number of
students graduating in maths and science, the country outperforms the US, Europe and Japan, says a new study.

India, in fact, ranks 17th based on this parameter, against 48 for the US, 33 for Japan and 38 for China, says the study by Ernst and Young, conducted jointly with the Associated Chambers of Commerce and Industry (Assocham).

Germany, according to the study, ranks first, followed by Singapore and France.

"The number of science and engineering graduates is an important consideration. There are 690,000 students of science and maths graduating every year -- much higher than China, Japan, the US and Europe," said D S Rawat, secretary general of Assocham.

"In China, the number of such graduates each year is 530,000, against 350,000 in Japan, 420,000 in the US and 470,000 in the EU," added Rawat, while releasing the study Thursday.

Some key facts about Indian education system highlighted by the study are:

-More than 2.3 million graduates every year

-Nearly 750,000 post-graduates per annum

-Second largest pool of scientists and engineers in the world

-Second largest number of trained doctors

-As many as 389 universities, 14,169 colleges and 1,500 research institutions

According to the study, changes in the education system were also necessary to meet the exacting demands of a knowledge economy. The exam system also needs to be overhauled to base it more on solving problem than in enhancing memorising capabilities of students.

"If higher education in India is liberalised with massive expansion of professional education and more institutions under public-private initiatives, the system can be completely transformed to acquire well established global standards," said Rawat.

Research institutions should be encouraged to incubate enterprises through a Rs.5,000-crore (over $1-billion) fund. An expenditure of 3 percent of gross domestic product for research is needed to encourage innovation and to nurture original ideas and thinking.



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Assembly approves trade pact with India

The National Assembly yesterday ratified a comprehensive economic partnership agreement with India, opening the way to the elimination or lowering of tariffs on more than $15 billion in annual bilateral trade with Asia's third largest economy.

The trade pact, which does not require ratification by India, could nearly double the volume of trade between the two sides, India's trade minister said.

Korea and India concluded the CEPA in early August to cut duties on such goods as auto parts and electronics, and to boost cooperation between the two Asian economic powerhouses. The accord will likely take effect on Jan. 1 next year.

The deal is the first by India with a developed economy and Korea's eighth free trade pact, including deals to open up markets with the United States and the European Union that have yet to be implemented.

The pact with the EU is expected to be approved by Korea's parliament much quicker than the U.S. deal, which has also been unpopular with some Democrats in the U.S. Congress.

The Korea-India deal will eliminate tariffs on three quarters of India's imports from Korea by value, and more than 80 percent of Korea's imports from India.

Bilateral trade between Korea and India reached $15.6 billion last year.

A study by the state-run Korea Institute for International Economic Policy said the pact could boost annual two-way trade by $3.3 billion in the near term and raise Korea's GDP by 1.3 trillion won ($1.06 billion).

Korea's main exports to India are auto parts, petroleum products, and mobile phones. Its largest import from India is naphtha, accounting for more than half of all imports in 2008.

The Korea Herald : The Nation's No.1 English Newspaper
 
So Finally we can see the LG Products going even Cheaper.
Gr8 Move.
Im planning to get a HDTV Soon. This will save my shillings.
 
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