Friday, April 26, 2013

Over the past decade, both the demand and the price of gold have been on an increasing trend across the world. This belief in gold as a safe haven increased post the global financial meltdown in 2008. The yellow metal has been considered as a safe asset having stable value that is immune to inflation. People have been hoarding this asset despite it not paying interest like a fixed income investment or dividends like equity shares.
However, the past one week has witnessed a free fall in the price of gold, falling close to 12 per cent in one week. Improving economy in the US leading to the belief that gold need not be held as a hedge, as well as profit booking has led to the gradual correction in gold prices internationally. What specifically triggered off last week’s fall were reports that some central banks, such as Cyprus, were selling gold. It was expected that some European countries will also start selling their gold reserves. Experts consider this fall to be the largest decline in gold prices in the last 30 years.
Let’s consider how this recent fall in prices has affected two sections of retail consumers in India: individuals buying gold for consumption purposes and individuals buying gold for investment purposes.
Although the fall in gold prices may not spell good news for everyone, individuals who purchase gold for consumption purposes are delighted by falling prices. The plunge has prompted a rush in physical gold purchases across India, and across all sections of the society. This is not surprising, as Indians are known for their affinity towards the yellow metal. In India, gold purchases are influenced by non-traditional factors like festivals, wedding seasons, harvest turnouts, etc., unlike in other countries. India is the largest consumer of gold in the world with an annual consumption of 963 tonnes (in 2010) and accounts for 31.5 per cent of the world gold consumption. Of the total demand, around 77 per cent is in the form of jewellery.
Understandably, the fall in prices has led to a spurt in jewellery purchases. Although current prices are still higher than what they were a few years back, the average Indian consumer views this fall as an opportunity to augment more of the yellow metal. Jewellery shop owners are also expecting this trend to continue, after two years of lacklustre purchases. With the wedding season coming up, jewellers are making every use of this chance to increase sales. Some jewellers have also said that the Akshaya Tritya festival, which falls in May, will help in boosting sales, as this is considered to be an auspicious time to purchase gold.
A majority of Indians have traditionally preferred buying gold jewellery instead of investing in other forms of gold investments. This trend has slowly changed in the country, especially among the investment-savvy class. This brings us to the next class of retail individuals, who purchase gold for investment purposes.
One common investment vehicle for gold, which has increased popularity in the recent past, is the gold exchange traded fund (ETF).
Gold ETFs are exchange traded units by mutual funds, which track the performance of gold, and are traded on the exchange like a stock. Mutual funds in India have been pushing gold ETFs in the past few years and the assets under management (AUM) was also rising due to the rising price of gold. However, ETFs have seen increased redemption in the last fiscal year, compared to the period 2007-2011. The recent fall in prices has led many to believe that funds can face increased redemption pressures if this trend continues. This is because of the general change in belief that gold is a safe haven, and also due to profit booking after gold reached all-time highs.
Nevertheless, despite the recent fall in prices, experts believe that gold has not lost its sheen, and is a good long-term asset. The increase in physical gold purchases signifies that the common man still holds this asset in great value. Although prices are expected to correct further in the short term, gold is expected to give healthy returns over a long term horizon, and as a result one should accumulate more gold ETFs as the price falls. Gold is a good hedge and should be held to some extent in every person’s investment portfolio from the point of view of diversification, especially in times of uncertainty.

Friday, April 12, 2013

As many as a half a million American lives could be saved if they all ate a fraction of a teaspoon of salt less every day, according to a new study. 

The study found that a gradual decrease in salt consumption over a decade — ending in a 40 per cent reduction — would prolong the lives of between 280,000 and 500,000 people by decreasing the risk of hypertension and heart disease. 

"It certainly confirms the enormous potential value in reducing the consumption of sodium," Michael Jacobson, executive director of the consumer watchdog Center for Science in the Public Interest said. 

The study is novel in that three groups of researchers using different methods all came to the same conclusion, he said. 

Americans ingest, on average, 3,600 milligrams of sodium daily, compared with 1,500 recommended by The Centers for Disease Control and Prevention. 

The study looked at cutting everyone's salt intake down to 2,200 milligrams. 

But foodies, fear not. The way to reduce Americans' salt intake isn't to hide the salt shakers at the dinner table, according to Kirstin Bibbins-Domingo, associate professor of medicine and epidemiology at the University of California at San Francisco. 

It's to get food companies to cut down on the amount of salt they put in commercially prepared and packaged food — the source of 80 percent of Americans' sodium. 

"The idea is individuals can't make this choice easily, so maybe we should find ways to work with the food industry," Bibbins-Domingo told ABC News. 

Those who most need to watch salt intake are people with high blood pressure, a condition that afflicts most people by the time they're elderly, she said. 

The study is published in the American Heart Association's journal Hypertension.
Cardamom aids the digestive process, helping the body break down and assimilate nutrients. It is also   known to boost metabolism and burn body fat, aiding with weight-loss.
Garlic has strong anti-bacteria effects, helps  reduce LDL (bad cholesterol)  and unhealthy fat.
Butter milk provides the body with essential nutrients and is very low   on fat and calorie content.
Cabbage is a great antioxidant, and makes a great accompaniment to heavy meat dishes. It slows down the conversion of carbs  and sugar into fat, makes a great aid to your weight-loss plan.
Chillies are another great ingredient to ramp up your metabolism rate and burn that excess fat. The component capsaicin generates heat and boosts metabolism, helping burn calories for up to 20 minutes after your meal.
Cinnamon and cloves aid the production of insulin and helps  blood sugar levels in the body. Highly beneficial to people with type 2 diabetes.
Curry leaves help reduce LDL levels in the body and are a great way to detox. They help reduce fat deposits in the body, a great aid to any weight-loss program.
Honey with warm water helps burn fat and is widely used home-remedy for obesity.
Coarse grains like millets, jowar, ragi and bajra are high on fibre-content and great for controlling cholesterol and melting fat.
Moong dal brings you your required dose of Vitamin A,B, C, and E as well as calcium, iron, and potassium, it is a great source of protein and fibre, with very low fat content. It lowers cholesterol and controls blood sugar levels in the body.
Mustard oil lowers level of saturated fat. It also provides antioxidants and essential vitamins to the body, lowering cholesterol levels and improving heart health.
Turmeric contains curcumin, a constituent that protects the heart. It helps reduce the levels of bad cholesterol (LDL), brings down high blood pressure, prevents clotting and reduces the risk of heart attacks.

Saturday, April 6, 2013

Our analysis found varying levels of arsenic in more than 60 rices and rice products.
Organic rice baby cereal, rice breakfast cereals, brown rice, white rice—new tests by Consumer Reports have found that those and other types of rice products on grocery shelves contain arsenic, many at worrisome levels.
Arsenic not only is a potent human carcinogen but also can set up children for other health problems in later life.
Following our January investigation, “Arsenic in Your Juice,” which found arsenic in apple and grape juices, we recently tested more than 200 samples of a host of rice products. They included iconic labels and store brands, organic products and conventional ones; some were aimed at the booming gluten-free market.

CR112K12-Arsenic-Opener
The results of our tests were even more troubling in some ways than our findings for juice. In virtually every product tested, we found measurable amounts of total arsenic in its two forms. We found significant levels of inorganic arsenic, which is a carcinogen, in almost every product category, along with organic arsenic, which is less toxic but still of concern. Moreover, the foods we checked are popular staples, eaten by adults and children alike. See the chart summarizing results of our tests for arsenic in rice or rice products.
Though rice isn’t the only dietary source of arsenic—some vegetables, fruits, and even water can harbor it—the Environmental Protection Agency assumes there is actually no “safe” level of exposure to inorganic arsenic.
No federal limit exists for arsenic in most foods, but the standard for drinking water is 10 parts per billion (ppb). Keep in mind: That level is twice the 5 ppb that the EPA originally proposed and that New Jersey actually established. Using the 5-ppb standard in our study, we found that a single serving of some rices could give an average adult almost one and a half times the inorganic arsenic he or she would get from a whole day’s consumption of water, about 1 liter.
We also discovered that some infant rice cereals, which are often a baby’s first solid food, had levels of inorganic arsenic at least five times more than has been found in alternatives such as oatmeal. Given our findings, we suggest limiting the consumption of rice products.
Source:Consumer Reports magazine: November 2012