Gold-silver boom from the third wave of Corona

- Commodity Current: Jayavadan Gandhi

Business is gaining momentum after the second wave of Corona unlocked but the economic situation has become so weak that people are giving first priority to meeting their needs. In which there has been a significant increase in the sale of old gold. Old scrap gold is expected to be sold in addition to about 215 tonnes this year. The non-agri commodity sector, parallel to gold, was also in good shape last week. The crude oil market has been falling steadily since last month. The market is in a frenzy over a compromise deal between China and the oil-producing countries. Rising cases of corona are also having an impact on economic activity these days, with gold accounting for the most. Gold on Comex has been bullish for over a month now. Parallel to gold, silver is also on a bullish trend, with industrial demand expected to grow by 5 per cent this year. Gold prices rose by Rs 2,000 per 10 grams and silver by Rs. Moving to the level of 30,000. Global prices are sliding below ૭૫ 5 a barrel due to falling demand from crude oil producers as well as high-consumption countries like China due to the corona. Crude oil imports to China have fallen by three to four per cent in the last six months. Metal commodities are getting support in China as the relief package is announced this year. Commodities like Nickel, Zinc, Aluminum are showing signs of recovery. To increase business in gold as well as to make it more transparent and organized, the government has announced hallmarking as well as SEBI for Mr. Ganesh of Spot Gold Exchange. Emphasis is being laid on bringing transparency in gold prices and quality in the trading session to be held on the Gold Spot Exchange as well as the stock market. Starting from about five grams, trading will be done according to 10, 20, 100 and one kg size flour.

Meanwhile, due to the stock limit imposed on pulses in agri commodities, most of the markets in states like Maharashtra, Rajasthan and Madhya Pradesh have been shut down and traders are protesting against the government's policy, fearing that Inspector Raj will return to the agricultural markets. The stock limit law is enforced when prices of essential food items go up by more than 50 per cent, but some items in pulses today are below market support prices. Yet the sudden introduction of the stock limit has caused a huge outcry among traders. The unexpected law of stock limits has poured oil on the stomachs of stockists in particular. Earlier, as there was no stock limit, they would have bought large quantities of pulses. As a result, the possibility of the strike, which started with the demand of withdrawing the stock limit law due to prolonged activism of stockists, extending indefinitely, has become a hot topic in the business community.

Meanwhile, exports of agricultural commodities have also been steadily rising over the last few months. China's flirtations in particular have increased. In addition to the ongoing checks by the Chinese government on pesticides in Indian food, are Indian goods now affected by the corona virus? In that case, too, the difficulty has increased since the strict checking began. Checking for pesticides and corona viruses has led to a significant rejection of 10 to 15 per cent in exports from India, leading to an increase in headaches for exporters. According to exporters, if a container is rejected and returned, the exporter is estimated to lose at least Rs 1.5 lakh. Exporters have in the past had the experience of rejecting many food items for various ridiculous reasons or not making money even after receiving the goods. Despite the huge demand for many things from India, including spices, oilseeds, pulses, the fragmented China does not leave an opportunity to harass the Indians. China has again increased the headaches of Indian exporters by starting corona testing.