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GOLD PRICE FLUCTUATION

SOP GROUP 12

MBA 2011

ALEX GEORGEAPARNA MOHANBIJESH S BGEETHU K RAVIRAHUL P MVINAYAK S L

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AGENDA

• Introduction

• Gold in the investment portfolio

• Price history of gold

• Factors affecting gold price in India

• Effects of gold price in economy

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INTRODUCTION

• Precious & finite natural commodity

• 60% jewellery

• India & China at the forefront of consumption

• World Gold Council's GDT

• Toppers: South Africa, United States, Australia &

Indonesia.

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TYPES OF INVESTMENT

• Physical Metal

• Gold ETF's

• Gold Mining Stock

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PHYSICAL METAL

• Jewellery

• Gold Coins

• Tola Bars

• Kilo Bars

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GOLD ETF’s

• Open Ended Index funds that are listed and traded

through exchanges.

• ETF are mainly in Gold, Silver, Platinum and Palladium

besides others .

• They are listed in major stock exchanges.

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GOLD IN THE INVESTMENT PORTFOLIO

• Hedge against inflation

• Hedge against a declining dollar

• Gold as a safe haven

• Supply and demand

• Store of value

• Portfolio diversifier

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GOLD INVESTMENT PRACTICES IN INDIA

• Physical gold.

• 25,000 tonnes jewellery, Coins and Bars.

• Form of storing wealth

• At past jewellery investment

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Contd…

• Investment in the Bars, Coins.

• Fluctuations in gold prices

• Investment:Wedding,Children,Property,Purchase,

& Emergency

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WORLD SCENARIO

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GOLD PRICE FLUCTUATION

1900190119021903190419051906190719081909191019111912191319141915191619171918191919201921192219231924192519261927192819291930193119321933193419351936193719381939194019411942194319441945194619471948194919501951195219531954195519561957195819591960196119621963196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920100

200

400

600

800

1,000

1,200

1,400

USD GBP

US$/oz, GB£/oz

Average annual gold price in USD and GBP since 1900

Source: Reuters Datastream, World Gold Council

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GOLD PRICE:LAST DECADE

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CURRENT GOLD PRICE

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FACTORS AFFECTING GOLD PRICE

• Integral part of Indian culture

• Largest consumer of gold

• Rise in population

• Gold investment

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Contd…

• Effect of U.S dollar

• Change in world’s gold supply

• Parallel economy

• Global economic situation

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AN OVERVIEW OF HOW GOLD PRICE AFFECTS THE ECONOMY

• Inflation

• Electronic Industry

• Health Sector

• Aerospace Industry

• Glass Industry

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Contd…

• Gold Mining Industry

• Commodity Market

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CONCLUSION

“Be innovative and stop the run for easy money”

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