Wisdom of Words

• Print
• E-Mail

Well, one of the more significant final gold demand tallies of 2008 is now available, and it confirms that which we have been cautioning for the better part of the year that passed. Gold imports by India, traditionally the single largest global buyer of the metal, fell by 47 percent in 2008. Only 402 tonnes were demanded by the country, as high gold prices and a slowing Indian economy ended up nearly halving demand, according to the Bombay Bullion Association.

The Mumbai-based trade body said that India's gold imports in last month dropped by 81 percent to total only 3 tonnes (just over 96,000 ozs.), as compared to 16 tonnes being imported in the same month of 2007. The deadly bombings in the centre of Mumbai were also seen as having affected demand in December. Unless gold can bank on investment demand to more than offset the slump in Indian purchase tonnages, we must remain on alert and exercise caution. Demand destruction of this type is not health-beneficial for our market.

One ought not take one of the pillars of gold demand and treat it as if it mattered little. The President of the BBA, Mr. Suresh Hundia made it quite clear: "Imports were down because prices rose. There were not many marriages or festivals either," In 2007, India imported 759 tonnes of gold (in other words, almost as much as the gold ETF has amassed in four years' time).

You have undoubtedly made your own New Year's resolutions and listened to many other wise words of advice on what to do and how to do it in 2009. We now bring you Todd Harrison's list of tips to remember when it comes to...most everything:

The carnage of 2008 forever changed the socioeconomic landscape and seismically shifted the collective perception of what we do, how we do it and who we do it with. As we look back at the year that was and cast an eye toward what will be, a little perspective will most certainly go a long way. Herewith are some personal lessons learned, some of which relate to the market but most of which apply to life.

• All you have is your name and your word.

• Emotion is the enemy when trading.

• The only difference between genius and madness is acceptance.

• Adapt but don't conform.

• The reaction to news is more important than the news itself.

• Time is the most precious commodity.

• Opportunities are made up easier than losses.

• The purpose of the journey is the journey itself.

• What goes around comes around.

• The greatest wisdom is bred as a function of pain.

• Bad times define good friends just as bad seasons define good fans.