1 Tonne of Gold Sold last Week Gold traders stock-up after Gold prices Fall

India's gold buying continued on Monday afternoon after prices fell 1.8 percent in the previous week, as traders sought to stock in anticipation of the upcoming harvest festival and on wedding demand, dealers said.

"The good response has been continuing from last week. I sold about 1 tonne of gold last week," said a dealer with a state-run bullion importing bank in Mumbai.

The most-active gold for February delivery was trading 0.38 percent higher at 20,450 rupees per 10 grams at 12:59 p.m., still down 2.3 percent from the record high of 20,924 rupees struck last month.

International spot gold edged higher, after losing 3.5 percent in the first week of 2011, as fears over the euro zone debt crisis buoyed appetite for bullion, and bargain hunting in the physical market provided support.

"I am expecting good sales to continue today as well at $1,370-1,375 (an ounce)," said the dealer with the state-run bank. Weddings in India, the world's largest consumer of yellow metal, will re-start next month.

Gold traders also awaited direction from the rupee, which plays an important role in determining the landed cost of the dollar-denominated yellow metal.

The Indian rupee held its ground, supported by firm Asian peers and a sharp drop in the country's trade deficit in December.

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Gold Towards new Record High

Gold towards new record High

India gold futures may extend gains at the open on Wednesday and hit record high later in the day supported by strong overseas leads, analysts said.

The most-active October gold contract on MCX last closed at 19,169 rupees per 10 grams, up 0.7 percent, after hitting a record high of 19,211 rupees in the previous session.

Gold overseas was within sight of a two-month high hit the previous day, as global sharemarkets tumbled and the euro slipped on renewed fears about the health of the global economy.

Buy gold around 19,130, targeting 19,250, maintaining a stop loss of 19,080.

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Farm land, gold are good investment options

Farm land, gold are good investment options:
Michael Burry, the former hedge-fund manager who predicted the housing market’s plunge, said he is investing in farmable land, small technology companies and gold as he hunts original ideas and braces for a weaker dollar. “I believe that agriculture land — productive agricultural land with water on site — will be very valuable in the future,” said Mr Burry in a Bloomberg Television interview.

“I’ve put a good amount of money into that,” Mr Burry, as head of Scion Capital, prodded Wall Street banks in early 2005 to create credit-default swaps to bet against bonds backed by the riskiest home loans. The strategy paid off as borrowers defaulted, letting his investors more than quintuple their money from 2000 to 2008, according to Michael Lewis’s book “The Big Short”.

It’s possible to find opportunities among small companies, because large investors and government officials focus on bigger ones, he said. He is particularly interested in small-technology firms. “Smaller companies in Asia, I think, are neglected,” he said. “There are some very cheap companies there.”

Investing in Gold

Gold is also a favoured investment as central banks issue debt and devalue their currencies, he said. Governments haven’t adequately addressed the causes of the financial crisis and maybe sowing the seeds for future problems by borrowing, he said.

In the US, lawmakers showed they didn’t understand how to prevent another crisis when they gave the Federal Reserve and chairman Ben S Bernanke additional authority, he said.

Background in Medicine

Originally, investing was a hobby for Mr Burry, who as a resident neurosurgeon at Stanford Hospital in the 90s typed his ideas onto message boards late at night. It’s possible Mr Burry is part of “an extremely small group” of economists and investors who are “really exceptionally adroit” at forecasting, former Fed chairman Alan Greenspan had said in April. Mr Burry has been critical of the role Greenspan played in fuelling the crisis with low interest rates.

Goldman Sachs

Mr Burry said Wall Street i-banks such as Goldman Sachs Group shouldn’t trade on their own account and don’t always act in the best interests of their clients. The firm is disbanding its principal-strategies business, one of the groups that make bets with the company’s own money, two people with knowledge of the decision said last week.

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