DYNAMICS OF GLOBAL COMMODITY

MARKETS-PRECIOUS & INDUSTRIAL METALS

MEMBERS ADITI MEHTA- 126 HARSH.A.MEHTA- 127 HARSH.T.MEHTA- 128 JINAL GAMI- 129 SHRENIK MEHTA- 130 VIRAL MEHTA- 131

INTRODUCTIONWhat is commodity markets? A” COMMODITY MARKET” is a market that trades in primary rather

than manufactured products. Soft commodities are agricultural products such as wheat, coffee , cocoa  and sugar. Hard commodities are mined, such as (gold, rubber and oil). Investors access about 50 major commodity markets worldwide with purely financial transactions increasingly outnumbering physical trades in which goods are delivered. Futures contracts are the oldest way of investing in commodities. Futures are secured by physical assets. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management Commodities markets allow global investors to make or lose money by predicting the rise or fall of primary products like soybeans, wheat, corn, oats, sugar, rough rice, cattle, pigs, precious metals, industrial metals, currencies, electricity and others.

WHAT ARE METALS? Metals possess many unique fundamental properties

that make them an ideal material for use in a diverse range of applications. Structures ranging from bridges, silos and tractors to gym lockers and lawn mowers all contain some form of metal. Properties such as high tensile strength, high fracture toughness , malleability and availability are just some of the many advantages associated with metals.

PRECIOUS METALS A precious metal is a rare, naturally

occurring metallic chemical element of high economic value.

 Historically, precious metals were important as currency but are now regarded mainly as investment and industrial commodities.

The best-known precious metals are gold and silver

Other precious metals include the platinum group metals ruthenium, rhodium, palladium etc.

USES

ADVANTAGES Precious Metals Can Hedge Against Inflation Precious Metals Are Global Currency There Are A Wide Variety Of Precious Metal

Investment Options Available You Can Take Possession Of Your Investment Precious Metal Investments Can Diversify Your

Portfolio Precious Metal Investments Are Very Liquid And

Marketable There Are A Number Of Precious Metals To Choose

From

DISADVANTAGES Low Profitability

Appreciation Cycles

Price Corrections

FEATURES Precious metals rise on firming global trend

Precious metals recover on international trend

Precious metals ease on poor demand

Investing in precious metals can be tricky

Precious metals fare best as dollar dives

INDUSTRIAL METALS Gold and silver may get all the glory, and look pretty,

but when you want to build an economy, it's the industrial (or base) metals that steal the show. As such, base metals have emerged as a key way for investors to tap into the rapid development of emerging economies like China. As China builds new apartment buildings and factories, it needs iron for the trusses, copper for the pipes and aluminum for the appliances.

For investors just getting started, here are the most widely used base metals in the world, in order of global consumption.

TYPES Steel (Iron) Aluminum Copper Zinc Lead Nickel Tin

USES Copper Alloys: Used for applications with low friction requirement, brass is one of the popular metal alloys made by mixing copper with

zinc. Valves, locks, bearings and gears are some examples of these applications. Moreover, brass is known for its recyclable nature. Another common copper alloy is bronze which contains tin as another constituent metal.

Aluminum Alloys: The aluminum alloys are the most popular materials that have great importance in many industrial uses. Consisting of

aluminum, nickel and cobalt, alnico is one of these alloys and is used in electric motors, cow magnets, sensors and microphones. Duralumin is made of aluminum, copper, manganese and magnesium and is an extremely popular alloy for aircraft structures.

Iron Alloys: Iron needs no introduction for being a popular choice for many metal alloys like steel and stainless steel. Steel is

extremely admirable for its high rust resistance, tensile strength and welding ability. The alloy is a useful material for the construction of railways, roads, bridges and skyscrapers. Stainless steel is a famous variety of steel and is used in making surgical instruments, industrial equipments, bridges and aircraft and automobile body parts.

Other Metal Alloys: Tin is also used as the main constituent for many alloys like pewter and solder. While pewter is mainly used as a

decorative material, solder is a widely used material for joining (called soldering) metals for many important industrial applications. Sterling silver is a well-known alloy of silver. It is useful not only as a jewelry material, but also for making medical and musical instruments.Nichrome, an alloy of nickel, is used in explosive industry for electric ignition systems. Resistance wires made of this alloy too are popular.

AD

DI

FEA

COMPARISON

CURRENT STATUS OF BOTH METALS

CONCLU

BIB

FINISH