Gold demand in India jumps as jewellers buy at record price

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But didn't Kitco's Jon Nadler promise that they wouldn't do that?

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Indian Gold Demand Jumps as Jewellers Buy at Record Price

By Rajendra Jadhav
Reuters
Friday, September 14, 2012

http://in.reuters.com/article/2012/09/14/markets-india-precious-idINL3E8...

MUMBAI -- Gold demand in India, the world's biggest consumer, rose sharply on Friday despite a record high price as jewellers and investors scaled up purchases expecting prices to climb further during the festive season.

Next week India celebrates the Ganesh festival, which will be followed by Dussehra in October and Diwali in November. Buying gold during festivals is considered auspicious in the country.

Spot gold price in India hit a record high of 32,558 Indian rupees per 10 grams on Friday, compared to previous session's close of 32,173 rupees.

... Dispatch continues below ...


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Prophecy Platinum Intercepts Best Pt+Pd+Au Grades Yet
at Wellgreen Project in Yukon Territory: 5.36 g/t

Company Press Release
Tuesday, September 11, 2012

VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces more results of its 2012 drill program on the company's fully-owned Wellgreen platinum group metals, nickel, and copper project in southwestern Yukon Territory, Canada. Four surface holes and four underground holes all intercepted significant mineralized widths, ranging from 28.5 meters (WS12-201) and up to 459.5 metres (WS12-193). Highlights include WU12-540, which returned 8.9 metres of 5.36 grams per tonne platinum, palladium, and gold; 1.73 percent copper; and 1.01 percent nickel within 304.5 meters of 0.66 g/t platinum-palladium-gold, 0.20 percent copper, and 0.27 percent nickel.

The surface drill program started in June and has completed 16 holes (assays pending for 12 holes) with two rigs now on site. The surface program continues to progress at a steady pace.

Prophecy Chairman John Lee commented: “Wellgreen is a very large nickel, copper, and platinum group metals project with near-surface high-grade zones. High-grade intercepts will be incorporated into resource modeling and mine planning in the pre-feasibility study. We expect further positive drill results from Wellgreen shortly.”

Wellgreen features a low 2.59-to-1 strip ratio, is situated at an altitude of 1,300 meters, and is only 15 kilometers from the two-lane paved Alaska Highway. Those factors significantly minimize the project's indirect costs.

For the complete company statement with full tabulation of the drilling results, please visit:

http://prophecyplat.com/news_2012_sep11_prophecy_platinum_drill_results....



"Buyers were waiting for a correction in prices for a long period. Now they think the correction is unlikely as the U.S. Federal Reserve announced stimulus," said a Mumbai-based dealer with a state-run bank importing the yellow metal. "Some buyers even think price may cross 35,000 rupees."

Spot gold overseas rose to a six-month high on Friday, extending the previous session's 2-percent gain, after the Federal Reserve launched an aggressive economic stimulus program that could add to the risk of inflation and strengthen bullion's appeal.

"Jewellers and jewellery exporters were keeping lower inventory. They were postponing purchases, hoping prices will drop from record level," said a Mumbai based dealer with a private bank. "Now jewellers are buying at a record high price since festival season is just around the corner. They can't wait further."

Investment demand, which plunged 51 percent in the June quarter to 56.5 tonnes, was also improving due to the price rally, dealers said.

The most-traded gold for October delivery was 0.2 percent lower at 32,261 rupees per 10 grams, after hitting a record high of 32,421 rupees late on Thursday.

A rise in the rupee, which determines the landed cost of dollar-quoted metal, weighed on sentiments, dealers said.

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