HARD LANDING IN CHINA ?

Source...CNBC

When Uncle Sam sneezes, punters here run to the commodity market. There's nothing unusual about that. But over the past few days, traders are taking a different bet - something last seen five years ago.

They are punting on natural gas more than on gold, which has been the traditional darling of the commodity ring. This is a world where action picks up in the evening as trading begins in New York and well after local punters are done with trading stocks on Dalal Street. What has caught their fancy is the volatility in natural gas prices driven by the biting cold in the US and fears of falling .

As futures contracts in India mirror those traded on bourses such as New York Mercantile and Chicago, daily natural gas volumes on MCX, the Indian commodity futures bourse, hit a five-year high. On Wednesday, traded volumes in natgas futures at Rs 8,958 crore surpassed gold volumes at Rs 6,172 crore.

Apart from volatility, the reason why traders flocked to that counter is it's way cheaper than gold and because a small rise in the unit price of gas results in a much larger move at contract level. "The intra-day volatility in natural gas has been 5-6% over the past few weeks, but in gold it is not even a per cent.

This is time to Lay the foundation for a Wealthy