..... . VALI disclosures . .....: 31/05/26, Gold Silver Base Import Price: In a move to align customs valuations with shifting international market trends, the government has slashed the base import prices for both gold and silver, reducing the notional value used to calculate customs duty and easing the duty burden on imports.

Sunday, May 31, 2026

31/05/26, Gold Silver Base Import Price: In a move to align customs valuations with shifting international market trends, the government has slashed the base import prices for both gold and silver, reducing the notional value used to calculate customs duty and easing the duty burden on imports.

Revision in Gold Silver Base Import Price

According to Informist, the base import price for gold has been lowered to $1,423 per 10 grams, down from $1,508 per 10 grams while the base import price for silver has been reduced to $2,368 per kilogram, down from the previous rate of $2,455 per kilogram.

The revised prices apply to gold and silver imported in any form under specified tariff headings. The base import prices of gold and silver were last revised in March.

In March this year, the government cut the base import price of gold by $12 to $1,652 per 10 gram while the base import price of silver was raised by $20 to $2,820 per kilogram, according to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC).

In February too, the government had cut the base import price of gold and silver. While the base import price of gold was cut by about $50 to $1,518 per 10 grams, while that of silver has been reduced by over $800 to $2,657 per kilogram, according to the Central Board of Indirect Taxes and Customs (CBIC) notification.

What is a Base Import Price?

The base import price (or tariff value) is the official benchmark price the government uses to calculate the customs duty on precious metals that individuals bring into the country.

Instead of tracking volatile hourly market rates at the ports, the government generally revises base import prices of gold and silver every fortnight but makes changes more frequently when prices are volatile. This ensures that tax collection accurately mirrors recent global bullion price adjustments. India is one of the world's biggest importers of silver and the largest consumer of gold.

Gold rebounds Rs 1,600; silver rallies Rs 5,000 on US-Iran deal hopes

Gold prices rebounded by Rs 1,600 to Rs 1.62 lakh per 10 grams in the national capital on Friday, tracking firm global trends amid optimism over a preliminary US-Iran deal and expectations of seasonal demand in the domestic market.

According to local marketmen, the precious yellow metal of 99.9 per cent purity appreciated Rs 1,600 to Rs 1,62,900 per 10 grams (inclusive of all taxes) from Wednesday's closing level of Rs 1,61,300 per 10 grams, as per PTI.

Silver prices also strengthened sharply, jumping Rs 5,000 to Rs 2,74,700 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,69,700 per kg in the previous session.

Bullion markets remained closed on Thursday on account of Eid-ul-Azha.

In the international markets, spot gold gained nearly 1 per cent to USD 4,530.72 per ounce, while silver was trading flat at USD 75.52 per ounce.

According to reports, the US and Iran have agreed to a preliminary understanding that would extend the ceasefire by 60 days.

As part of the proposed memorandum of understanding, Iran is expected to normalise traffic through the Strait of Hormuz within 30 days, while both countries are likely to continue discussions on contentious issues, including Tehran's nuclear stockpile and uranium enrichment, during the ceasefire period.

However, the final text of the agreement is still awaited, with neither US President Donald Trump nor Iran's Supreme Leader Mojtaba Khamenei publicly commenting on the deal so far.

(Report by EconomicTimes eith PTI inputs)

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Sunday, May 31, 2026

31/05/26, Gold Silver Base Import Price: In a move to align customs valuations with shifting international market trends, the government has slashed the base import prices for both gold and silver, reducing the notional value used to calculate customs duty and easing the duty burden on imports.

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Today's

01/06/26, Gold prices on the first day of June continued to trade steady with a negative bias. According to Goodreturns.in at the time of writing at around 9:31 am, 24 and 22 carat gold were down by ₹10 each per 10 gm and quoted at ₹1,57,030 and ₹1,43,940 per 10 gm, respectively.

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