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INTODUCTION AND BRIEF HISTORY OF PUSHPAK:
M/s. PUSHPAK BULLIONS PRIVATE LIMITED (PUSHPAK) the Company was incorporated on 17, December 1999 promoted by Mr. Chandrakant Patel & Mr. Ketan M. Shroff. The Company is engaged in the manufacturing, wholesale trading of plain gold jewellery, diamond studded jewellery, gold and silver coins, medallions and precious stones, supplying, merchandising and trading in bullions and commodities. Mr. Ketan M. Shroff Chairman & Managing Director of the Company, 38 years old Diploma Engineer (Mechanical) is at the helm of affairs.
The Company started with a very humble beginning about a decade ago. Today Pushpak has grown many folds in terms of turnover, profitability and is also in widely spread geographically, it has become a multi activity, multi location organization having associates in Mumbai, Ahmedabad, Surat, and other cities in India. The Company also has presence in overseas market covering Gulf and USA.
Pushpak Bullions Pvt. Ltd. conducts its business on sound and straightforward business principles, with the motto “Rich Heritage of Trust”.
Pushpak, since start of all spot and future exchanges is authorized participant and market makers for leading exchanges and gold ETFs within India. The Company is holding membership of various Futures and Spot exchanges in India.
Today Pushpak has become one of the biggest suppliers of Bullion in various centers with in India, it has also played promoting & supporting role in newly launched Pan India platform for trading, supplying and setting up as price setter for Indian Bullion Market Association supported by more than 15 Bullion organizations all over India.
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Gold Industry Of India:
Gold Import although have fallen still holds price above Rs. 17000 per 10 gms.
"The country has imported 343 tonne gold in 2009, compared to 449 tonne in 2008," India has remained the largest gold importer in the past few years, but took a hit in 2009 due to soaring prices. Gold prices may see some correction and may touch Rs 16,400-16,500 per 10-gram in the near future.
India is the largest consumer of gold in the world to be followed by China and Japan. India is emerging as world's largest trading centre of this commodity with a target of US$ 16 billion set for 2010.
As in the other countries, Indian Gold investment is benefiting from securitization and the growth in the exchange-traded funds. First introduced in 2007 Gold ETF’s with physical gold held on behalf of investors totaling more than half a million ounces(about 15.5 tons) few months ago – and holdings will likely grow as more mainstream stock market investors participate.
The Indian gems and jewellery sector is expected to grow at a compound annual growth rate (CAGR) of around 13 per cent during 2011 – 2013, on the back of increasing government efforts and incentives coupled with private sector initiatives, according to a report 'Indian Gems and Jewellery Market Forecast to 2013', by RNCOS.
As per the study ‘Heart of gold' by the World Gold Council (WGC), the industry association for the gold industry, India owns over 18,000 tones of above-ground gold stocks (all physical and gold holdings, including private, Reserve Bank of India and institutional) worth around US$ 800 billion.
India's share of global demand, which stood at 16 per cent in 2009, rose to 25 per cent in 2010. The country is also the biggest buyer of gold jewellery with a 20 per cent share of the market. Gold import is likely to rise by 15 per cent in 2011 to around 805 tones, as compared to 2010 due to growing demand for gems and jewellery. According to initial estimates by the Bombay Bullion Association (BBA), imports of gold by India are steady and strong and could hit a record of 800 tons this year. Gold import by India is going up every month despite the high gold prices. Strong jewellery sales and consumer investment demand for gold are the main drivers for the surge in gold imports.
In terms of the percentage share held in gold of total foreign reserves, as calculated by the World Gold Council, India stood at 11th position with 557.7 tones of gold and 8.5 per cent of gold reserves.
The net sales of roughly 400 to 500 tons a year over the prior decade, the official sector(including the central banks, the International Monetary Fund , and sovereign wealth funds) became a net buyer of gold in 2009. Net official purchases may have totaled as much as 100 to 200 tons in each of the past two years, even allowing the IMF’s 403 ton gold sales program, which ended some months ago
Demand and Supply Scenario
- Gold demand in 2010 reached a 10-year high of 3,812.2 tonnes, worth US$150billon, as a result of;
- strong growth in jewellery demand;
- the revival of the Indian market;
- strong momentum in Chinese gold demand and
- a paradigm shift in the official sector, where central banks became net purchasers of gold for the
first time in 21 years.
- China was the world's largest gold producer with 340.88 tonnes in 2010, followed by the United States and South Africa.
- In 2010, India was the world's largest gold consumer with an annual demand of 963 tonnes.
- The total supply of gold coming onto the market in 2010 reached 4,108 tonnes, a rise of 2% from 2009 levels.
Factors Influencing the Market
- Above ground supply of gold from central bank's sale, reclaimed scrap, and official gold loans.
- Hedging interest of producers/miners.
- World macroeconomic factors such as the US Dollar and interest rate, and economic events.
- Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices.
- In India, gold demand is also determined to a large extent by its price level and volatility.
GOLD PRICE, INDIAN RUPPEE PER OUNCE (LONDON PM FIX)
SILVER INDUSTRY OF INDIA:
India's silver demand averages 2500 tonnes per year, whereas the country's production was around 206.95 tonnes in 2010.Nearly 60% of India's silver demand comes from farmers and rural India, who store their savings in silver bangles and coins.
Silver recently hit nearly Rs75000/kg in India and $50/oz in international market. Market vibration indicates that prices could advance more from its historic high both in India and across the globe.
The production of silver in India stands out at the figure of around 2.1 million ounces placing it at the 20th position in the list of major silver producing countries. The import of silver in India hovers over 110 million ounces that shows the huge size of Indian domestic demand
However, this import level fell sharply as a result of the decline in demand due to rise in silver prices and inconsistent monsoon on which the income of the rural sector depends. Over 50% share of import of silver in India is held by Chinese silver.
Factors Influencing the Market
- Economic events such as national industrial growth, global financial crisis, recession, and inflation affect metal prices..
- Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices.
- Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) material flow.
- Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes
- A faster growth in demand against supply often leads to a drop in stocks with the government and investors.
- Silver demand is underpinned by the demand from jewellery and silverware, industrial applications, and overall industrial growth.
- In India, the real industrial demand occupies a small share in the total industrial demand of silver. This is in sharp contrast to most developed economies.
- In India, silver demand is also determined to a large extent by its price level and volatility.
Demand
- Industrial off take rebounded by 20.7% to 487.4Moz in 2010, a fraction shy of the pre-crisis record in 2008
- Jewellery demand rose by 5.1% to 167.0 Moz. Its first increase of substance since 2003
- Silver ware off take dropped by a hefty 14% to 50.3Moz,a result of lower demand in india on higer prices coupled with ongoing structural decline in western markets
- Photographic demand for silver posted its smallest loss in nine years in 2010, falling by 8% to 72.7Moz.from 2003 till 2010, silver usage in the photography including the scrap has declined by 97.58%.
Supply
- World silver mine output rose by 25 or 17.6Moz last year,to a new record high of 735.9Moz.
- 2010 saw a marked return to net producer hedging, with a 61.1 moz of supply throughout the year.
- Scrap supply increased by 14% to a new record high of 215 Moz in 2010.
- Government sales estimated at 44.8 Moz in 2010 up by a massive 188% on the previous years level. Total government silver stocks are conservatively estimated at 110 moz at the end-2010.
According to GFMS expectation, mine production will record another increase this year and the estimated to reach around 790 Moz.
Silver Price
Silver posted an average price of $20.19 in 2010, a level only surpassed in 1980, and a marked increase over the $14.67 average price in 2009.
World investment rose by an impressive 40 percent in 2010 to 279.3 million troy ounces (Moz), resulting in a net flow into silver of $5.6 billion, almost doubling 2009’s figure.
Exchange traded funds (ETFs) registered another sterling performance in 2010, with global ETF holdings reaching an impressive 582.6Moz, representing an increase of 114.9Moz over the total in 2009. The IShares Silver Trust accounted for almost 40 percent of the increase, with other notable gains achieved by Zurcher Kantonalbank, ETF Securities, and the Sprott Physical Silver Trust.
Yearly average prices based on London PM
FIX
Break up of Silver in Different Sector
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Under Construction
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