gold investement

8/4/2019 Gold Investement

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By Maanan R Desai

Head International Office

CitiGold Corporation Ltd

The Australian Gold Mine


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Physical MetalPhysical Metal

Gold ETF'sGold ETF's

Gold M inin Stock Gold M inin Stock


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JewelleryJewellery

Gold CoinsGold Coins

Tola BarsTola Bars

Kil B rKil B r


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Indians Love PHYSICAL GOLD. Current private holdings are moreIndians Love PHYSICAL GOLD. Current private holdings are moret an 25,000 tonnes e in orm or jewe ery, Coins an Bars.t an 25,000 tonnes e in orm or jewe ery, Coins an Bars.

Gold is in the Indian CultureGold is in the Indian Culture

Gold is a form of storing wealthGold is a form of storing wealth

raditionally, Indians bought gold in the form of jewellery thatraditionally, Indians bought gold in the form of jewellery thatserved dual purposeserved dual purpose Jewellery as well as investment but over theJewellery as well as investment but over the

past few years a new trend is emerging wherein in the Bars , Coinspast few years a new trend is emerging wherein in the Bars , Coins..


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Fluctuations in Gold Prices make Indians move towards Jewellery .Fluctuations in Gold Prices make Indians move towards Jewellery .bars & Coins Purchase especially days before festivals .bars & Coins Purchase especially days before festivals . Age Old Traditions to Systematic Investment in Gold over a periodAge Old Traditions to Systematic Investment in Gold over a period

o me an aces ess amoun o oppos on rom am y mem erso me an aces ess amoun o oppos on rom am y mem ersto buy Gold .to buy Gold .

Awareness of Gold pricesAwareness of Gold prices& EMERGENCY.& EMERGENCY.


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Exchange Traded FundsExchange Traded Funds

Exchan e Traded funds are o en Ended Index fundsExchan e Traded funds are o en Ended Index funds

that are listed and traded on exchanges like stock equitythat are listed and traded on exchanges like stock equitybased on the Price of the metal . ETF are mainly in Gold,based on the Price of the metal . ETF are mainly in Gold,

, ., .

They are listed in major stock exchanges.They are listed in major stock exchanges.


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Gold Exchange Traded Funds (GETF):Gold Exchange Traded Funds (GETF):

Gold ETFs is designed to provide returns that, beforeGold ETFs is designed to provide returns that, before,,

Gold in the spot market.Gold in the spot market.


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Like an Index Listing.Like an Index Listing. track s the asset Valuetrack s the asset Value

pen n e u ua unpen n e u ua un

Low Expenses RatioLow Expenses Ratio

Low TurnoverLow Turnover

Like a stock.Like a stock. rading flexibility intraday on the exchangerading flexibility intraday on the exchange

Real time price closeReal time price close Short term traders are not subsidized by long term investorsShort term traders are not subsidized by long term investors


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Gold ETFs was a huge success worldwide with 10 GETFs TradingGold ETFs was a huge success worldwide with 10 GETFs Trading

on xc anges w o a a ue o o o ng more anon xc anges w o a a ue o o o ng more an

$15bn. (as on 24$15bn. (as on 24thth July 2007) Now higher !!!!!!! and Growing..July 2007) Now higher !!!!!!! and Growing..

Name o Go ETFName o Go ETF AUM tonnes AUM tonnes

Gold Bullion Security AustraliaGold Bullion Security Australia 12.4812.48

Lyxor Gold Security listed on LSE, Eurinext, Paris, Borsa ItalianaLyxor Gold Security listed on LSE, Eurinext, Paris, Borsa Italiana 93.1093.10& Frankfurter Wertpapierborse (Deutsche Borse)& Frankfurter Wertpapierborse (Deutsche Borse)

Street Tracks Gold ETF listed on NYSE & SingaporeStreet Tracks Gold ETF listed on NYSE & Singapore 497.15497.15

New Gold Bullion Debentures Listed on JSE, SANew Gold Bullion Debentures Listed on JSE, SA 13.9213.92

I shares Comex Gold Trust listed on NYSEI shares Comex Gold Trust listed on NYSE 45.9145.91

ZKB Gold ETF listed on SwitzerlandZKB Gold ETF listed on Switzerland 21.721.7

GoldBeES (Benchmark AMC), Goldshare (UTI AMC) & KotakGoldBeES (Benchmark AMC), Goldshare (UTI AMC) & Kotak

Gold (Kotak M F) listed on the National Stock Exchange IndiaGold (Kotak M F) listed on the National Stock Exchange India 3.363.36


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1.1. Nifty BeESNifty BeES

2. Bank BeES2. Bank BeES3. Junior Nifty BeES3. Junior Nifty BeES

..

5. Gold BeES5. Gold BeES

6. UTI Sunder6. UTI Sunder7. UTI Go S are7. UTI Go S are

8. Kotak Gold ETF8. Kotak Gold ETF


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Small denominationSmall denomination For Retail to the Common ManFor Retail to the Common Man

Cost efficiencyCost efficiency No holding cost or other costNo holding cost or other cost Need for physical deliveriesNeed for physical deliveries

LiquidityLiquidity-- can be sold anywhere.can be sold anywhere.

Tax EfficiencyTax Efficiency Pre era e Not inPre era e Not in DematDemat orm or t roug Bro ers ut avai a e atorm or t roug Bro ers ut avai a e at

Post Office and Exchange house n Banks .Post Office and Exchange house n Banks .

MostMost imptheyimpthey are derivatives backed by gold and not outright orare derivatives backed by gold and not outright or

e owners p o p ys ca u on.e owners p o p ys ca u on. Nature of Ownership and Intermediation of ETFNature of Ownership and Intermediation of ETF


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MINING EQUITYMINING EQUITYTodays format of holding mining stockTodays format of holding mining stock

Client ServicesClient Services / Register Watch / Holder Search / Balances

Com an Name: CITIGOLD CORPORATION LIMITEDHolder Name: Mr KumarHolder Identifier: I0030000000Today's Date: 30 Oct 2007

Holder AddressAddress PO BOX 28692DUBAIUNITED ARAB EMIRATES ARE

Balances as of 30 Oct 2007

Security Class Register Balance Price Value

FULLY PAID ORDINARY SHARES NSW 284,289 AU$0.41 AU$116,558.49

UNL OPT EX 19/09/08 @ $0.37 NSW 33,743


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-- Never a more than 10% of the ross value of Never a more than 10% of the ross value of

the metal in the ground as advised by miningthe metal in the ground as advised by mininganalyst.analyst.

1 mi ion ounces U 7 per ounce =1 mi ion ounces U 7 per ounce =US$7.8b @ 10%US$7.8b @ 10% -- US$780m @ 650m shares =US$780m @ 650m shares =

50 m/ozs = what will the value of the share50 m/ozs = what will the value of the sharebe???be???

Gold @ US $ 1000/oz = ???Gold @ US $ 1000/oz = ???

Gold production @ 250,000 Ozs/yr @ 50% profitGold production @ 250,000 Ozs/yr @ 50% profit


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TopTop 10 Gold Producers10 Gold Producers

CountryCountry ProductionProduction CompaniesCompanies CountryCountry ProductionProduction

2006 20052006 2005

South AfricaSouth Africa 291.8291.8 Barrick GoldBarrick Gold CanadaCanada 268.8 169.8268.8 169.8

AustraliaAustralia 244.5244.5 Newmont MiningNewmont Mining USA USA 184.9 199.7184.9 199.7

United StatesUnited States 251.8251.8 AngloGold AshantiAng loGo ld Ashanti South Afr icaSouth Africa 175.3 191.8175.3 191.8

ChinaChina 247.2247.2 Gold FieldsGold Fields South AfricaSouth Africa 126.3 130.6126.3 130.6

PeruPeru 203.3203.3 HarmonyHarmony South AfricaSouth Africa 72.9 80.572.9 80.5

RussiaRussia 172.8172.8 Navol MMCNavol MMC UzbekistanUzbekistan 58.2 59.058.2 59.0

IndonesiaIndonesia 114.1114.1 Freeport McMoranFreeport M cM oran USA USA 53.9 86.853.9 86.8

CanadaCanada 104.0104.0 GoldcorpGoldcorp CanadaCanada 52.7 35.352.7 35.3

UzbekistanUzbekistan 78.578.5 Zijin MiningZij in Mining ChainaChaina 49.3 45.749.3 45.7

Papua New GuineaP apua New Guinea 60.460.4 BuenaventuraBuenaventura PeruPeru 48.1 56.448.1 56.4

Sub TotalSub Total 1,768.41,768.4 1,090.41,090.4

Rest of the worldRest of the w orld 702.6702.6 Rest of CompaniesRest of Companies 1,380.61,380.6

TotalTotal 2,471.02,471.0 TotalTotal 2,471.02,471.0

TopTop 10: 72% of10: 72% ofTotal OutputTotal Output

TopTop 10: 44% of10: 44% oftotal outputtotal output

Source: GFMSSource: GFMS *one tonne =*one tonne =32,151ounces32,151ounces


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Mine Production 2007Mine Production 2007Source Gold NewsSource Gold News


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Gold Production Costs (US$)Gold Production Costs (US$)20062006 20052005 yearyear--toto--yearyear

increase in %increase in %

2005 to 2006 to 20042005 to 2006 to 2004

Total CostTotal Cost 433433 359359 2121 1010

CanadaCanada Cash CostCash Cost 323323 258258 2525 1919


South AfricaSouth Africa Cash CostCash Cost 381381 363363 55 33


United StatesUnited States Cash CostCash Cost 357357 278278 2828 1111

Total CostTotal Cost 430430 338338 2727 88OtherOther Cash CostCash Cost 268268 221221 2121 1212


WorldWorld Cash CostCash Cost 317317 271271 1717 77



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Extraction costsExtraction costs $400$400

Margin & Grow ingMargin & Grow ing $380 approx 50%$380 approx 50%


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Performance and Risk Associated with GoldPerformance and Risk Associated with Gold

ompan esompan es

Geopolitical shift : from traditional to emerging countriesGeopolitical shift : from traditional to emerging countries newnewmines, lower costs,mines, lower costs, higher political riskshigher political risks

Quality and experience managementQuality and experience management

Access to financinAccess to financin

Size and grade of projectsSize and grade of projects -- economically exploitableeconomically exploitable

Development process from: inferred resourcesDevelopment process from: inferred resources --

Valuation of resources/reserves : ranging from $ 20Valuation of resources/reserves : ranging from $ 20 -- >$400 per>$400 perounceounce

o n ven ures w ma oro n ven ures w ma or acqu s onsacqu s ons conso a onconso a on


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Ph sical GoldPh sical Gold Returns ?? S otReturns ?? S ot

ETF sETF s Returns ower t an potReturns ower t an pot

Mining StocksMining Stocks ?? With margins of 50% the?? With margins of 50% thecompany makes , your stocks automaticallycompany makes , your stocks automatically

appreciate ig er t an o pot .appreciate ig er t an o pot . Max leverage on gold price.!Max leverage on gold price.!


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Gold is the onl asset class that is not somebod else's liabilitGold is the onl asset class that is not somebod else's liabilit

many bankruptcies and defaults. The only assetsmany bankruptcies and defaults. The only assetsyou can count on are those in your ownyou can count on are those in your ownpossession that are liquid, like cash or gold.possession that are liquid, like cash or gold.

Sound currencies such as gold become moreSound currencies such as gold become moreva ua e ecause so muc s w pe ou nva ua e ecause so muc s w pe ou ndefaults and wholesale wealth destruction. Thedefaults and wholesale wealth destruction. The

value of multinational corporations and banks.value of multinational corporations and banks.


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o s e u ma e sa e aven asseand the only currency which cannot

be printed or debased by desperateovernments. Inflationardepressions, however, wipe out the

,because the government Print more

.benefits from this brutal process.


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your money in Gold ,to getyour money in Gold ,to get

Gold Investment & ProtectGold Investment & Protect..


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..

hank Youhank You

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