gold price project

7/26/2019 Gold Price Project

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GOLDPRICEFLUCTUATION

PEC UNIVERSITY OF

TECHNOLOGY ,CHANDIGARH

ARUN KR. THAKUR-13108028

DEEPAK JINDAL-1310706

AKSHIT GUPTA-13100!!

GURPREET SINGH-131003!PULKIT SHAR"A-1310018

ROHAN DRAVID - 131001


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AGENDA

I#$%&'()$*

G&+' *# $ *#/$#$ &%$&+*&

P%*) */$&% & 4&+'

F5)$&%/ 5)$*#4 4&+' %*) *# I#'*5

E)$/ & 4&+' %*) +()$(5$* I#'*5#

E)&


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INTRODUCTION

P%)*&(/ *#*$ #5$(%5+ )&&'*$

O%#5#$/ 5#' ++%

I#'*5 C*#5 5$ $ &%%$ & )/($*

9&%+' G&+' C&(#)*+:/ GDT

T&%/; S&($ A%*)5, U#*$' S$5$/, A(/$%5+*5 I#'/*5.


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TYPES OF GOLD INVESTMENT:-

1. Gold exchange-traded !nd": - The recent explosion in exchange traded funds(ETFs) presents an even more interesting way to invest in gold. An ETF is a type ofmutual fund that trades on a stoc exchange lie an ordinary stoc. The ETF!s exactportfolio is fixed in advance and does not change. Thus" the two gold ETFs that trade inthe #nited $tates %oth hold gold %ullion as their one and only asset. ETF offers apractical way to hold gold in an investment portfolio.

#. D$rect o%ner"h$&: - There is nothing lie gold %ullion" the ultimate expression of purevalue. &old is the only real money" and its value cannot %e changed or controlled %ygovernment fiat-the underlying reason for governments to go off the gold standard"unfortunately. &old!s value will rise %ased on the pure forces of supply and demand" nomatter what 'r &reenspan decrees regarding interest rates or green%acs in circulation.The %ig disadvantage to owning gold is that it tends to trade with a wide spread %etween

%ids and as prices.'. Gold (!t!al !nd": - For people who are hesitant to invest in physical gold" %ut stilldesire some exposure to the precious metal" gold mutual funds provide a helpfulalternative. These funds hold portfolios of gold stocs-that is" the stocs of companieslie ewmont 'ining that mine for gold. ewmont is an example of a senior gold stoc.

A senior is a large" well-capitalied company that has %een around several years andhas a profita%le trac record


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TYPES OF INVESTMENT

P/*)5+ "$5+

G&+' ETF:/

G&+' "*#*#4 S$&)


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PHYSICAL METAL

J++%

G&+' C&*#/

T&+5=10 4.> ?5%/

K*+& ?5%/


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GOLD ETFs

ETF-Exchange Traded Funds

O# E#'' I#'@ (#'/ $5$ 5% +*/$' 5#' $%5''

$%&(4 @)5#4/.

ETF 5% 5*#+ *# G&+', S*+%, P+5$*#( 5#' P5++5'*(

/*'/ &$%/ .

T 5% +*/$' *# 5&% /$&)< @)5#4/.


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). *!n$or gold "toc+": - This level of stoc is more speculative. *unior stocsare less liely to own productive mines" and may %e exploration plays-withhigher potential profits %ut also with greater ris of loss. +apitaliation is liely to%e smaller than capitaliation of the senior gold stocs. This range ofinvestments is for investors whose ris tolerance is %roader" and who accept the

possi%ility of gold-%ased losses in exchange for the potential for triple-digit gains.

,. Gold o&t$on" and !t!re": - For the more sophisticated and experiencedinvestor" options allow you to speculate in gold prices. ,ut in the options maret"you can speculate on price movements in either direction. f you %uy a call" you

are hoping prices will rise. A call fixes the purchase price so the higher that pricegoes" the greater the margin %etween your fixed option price and current maretprice. hen you %uy a put" you expect the price to fall. ,uying options is risy"and more people lose than win. n fact" a%out three-fourths of all options %oughtexpire worthless. The options maret is complex and re/uires experience andunderstanding


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#$E$ 0F &012

JE9ELLERY


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FA+A1 &012


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GOLD IN THE INVESTMENT PORTFOLIO

3 H'4 545*#/$ *#+5$*

3 H'4 545*#/$ 5 ')+*#*#4 '&++5%

3 G&+' 5/ 5 /5 5#

3 S(+ 5#' '5#'

3 S$&% & 5+(

3 P&%$&+*& '*%/**%


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GOLD INVESTMENT PRACTICES IN INDIA

P/*)5+ 4&+'.

2B,000 $#/ ++%, C&*#/ 5#' ?5%/.

F&% & /$&%*#4 5+$

A$ 5/$ ++% *#/$#$


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Contd

I#/$#$ *# $ ?5%/, C&*#/.

F+()$(5$*/ *# 4&+' %*)/.

F*+'/ & *#/$#$

9''*#4 )%*/

P%/+ 5//$


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WHATS DRIVING GOLD


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F/TO0S FFE/TING GOLD P0I/E ND INVESTMENT:-

ea+ 2S Dollar: - 4ro5ections a%out a declining dollar due to an ever-increasing twindeficit supported %y many investment veterans are met %y much denial from politiciansas well as from investors. As long as foreigners are willing to pour in the amount of 67%illion dollars every woring day" the dollar won8t crash. ,ut if foreign confidence were towane" the #$ dollar will %e heading south. o matter how you loo at the #$ twin

deficits and America8s future fiscal lia%ilities" this pro%lem is huge and some painfulad5ustments not only seem to %e necessary %ut unavoida%le as well.

Gro%th $n De(and or 3e%eller4: - The demand for gold 5ewellery has seen a regulargrowth year on year. +ountries which are primarily responsi%le for this growth are ndia"

+hina" taly" Turey and the #$A. The demand for consumption of gold in 5ewellery was9 higher at ;


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Increa"e $n de(and or exchange traded &a&er 5ac+ed &rod!ct": -For the first timein history" gold can %e purchased lie any listed stoc at select stoc exchanges of theworld lie 1ondon $toc Exchange" Australian $toc Exchange (&old ,ullion $ecurities)and ew or $toc Exchange. The orld &old +ouncil initiated Electronic TradedFunds have displayed very good performance and growth in volumes since launch.

/entral 5an+" re"er6e": - +entral %ans eep ingot reserves as a hedge againstinflation. 0ther monetary policies of the central %ans also affect the price of gold. 1owinterest rates discourage people to invest in paper moneyB they turn towards the goldenmetal in the hope of %etter returns. f the central %ans give high interest rates" thechances are that the ingot price will fall.

Gold d!r$ng t$(e" o l!ct!at$on: - &old is purchased more during a downturn ineconomy. This is %ecauseB the companies might start reducing production due todeclining sales. 2ue to this" the stoc prices will start going down. n this scenario" &oldis the safest option to invest in. Thought the return on investment may not %e as high asother investment options" safety and good value for money are very important in times offluctuation

G ld


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Gold

FluctuationInstability

Infation

Oil Prices

C td


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Contd

!ond

Fluctuatin"#oney

$oardin" %Dis&osin"


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2A A2 &012

ndia produces approx.only C tons D imported

??-@?? tons gold.

&old as a sym%ol ofpurity" prosperity and

good fortune

0ver >< per cent ofhousehold savings is in

physical assets lie gold.

&0 0 $


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&012 F0EG E$EHE

+ountries &old as ofTotaleserves

#$A ;; per cent

&ermany ;C per cent

taly ;< per cent

France ;7 per cent

etherlands 97 per cent

ndia @ per cent

'4A+T 0F &012 0 2A!$


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'4A+T 0F &012 0 2A $+IA ,A1A+E

IMP/T OF GOLD ON INDIN


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IMP/T OF GOLD ON INDINFINN/IL SYSTEM

Reverse demnd !

s"##$% me&'n(sm

)(dens &*

de+(&(t

An "n#rod"&t(ve

(nvestment

De#r(ves

+(nn&($

mr,ets o+ +"nds

Ind$an Pol$c4 d6$"or"


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Ind$an Pol$c4 d6$"or"D$"co!rage 7!4$ng Gold JJ.K

D. SU?RATO RAO

FOR"ER R?I GOVERNER


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IMPO0TN/E OF GOLD IN M08ET

Electron$c": - &old is highly conductive to electricity" and has %een used for electrical

wiring in some high-energy applications. For example" gold electrical wires were usedduring some of the 'anhattan 4ro5ect8s atomic experiments. &old is used in theconnectors of the more expensive electronics ca%les" such as audio" video and #$,ca%les. The %enefit of using gold over other connector metals such as tin in theseapplications is highly de%ated Fine gold wires are used to connect semiconductordevices to their pacages through a process nown as wire %ondingero"&ace: - &old is used in hundreds of ways in every space vehicle that A$Alaunches.&old is used in circuitry %ecause it is a dependa%le conductor and connector. 'anyparts of every space vehicle are fitted with gold-coated polyester film. &old is also usedas a lu%ricant %etween mechanical parts. &old has very low shear strength and thin

films of gold %etween critical moving parts serves as a lu%ricant - the gold molecules slippast one another under the forces of friction and that provides a lu%ricant action.*e%eller4: - &old is found in the pure state" is very easy to wor and was pro%a%ly thefirst metal used %y humans. Today" most of the gold that is newly mined or recycled isused in the manufacture of 5ewellery. A%out ; of the gold consumed each year isused in the manufacture of 5ewellery. $pecial properties of gold mae it perfect for

manufacturing 5ewellery. These include: very high lustreB desira%le yellow colourB tarnishresistanceB a%ility to %e drawn into wires" hammered into sheets or cast into shapes.

E1E+T0+$


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E1E+T0+$

'E2+A1


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'E2+A1


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Med$c$ne: - &old was often seen as %eneficial for the health" in the %elief that something

that rare and %eautiful could not %e anything %ut healthy. Even some modernesotericisms and forms of alternative medicine assign metallic gold a healing power.n5ect a%le gold has %een proven to help to reduce the pain and swelling of rheumatoidarthritis and tu%erculosis. &old alloys are used in restorative dentistry" especially in toothrestorations" such as crowns and permanent %ridges. The isotope gold->@" is used insome cancer treatments and for treating other diseases.

Decorat$on: - &old has the highest mallea%ility of any metal. This ena%les gold to %e%eaten into sheets that are only a few millionths of an inch thic. These thin sheets"nown as Lgold leafL can %e applied over the irregular surfaces of picture frames"moulding or furniture

P!5l$c $n6e"t(ent: &old is also considered as a pu%lic investment. 'any countrieshave huge &old reserves. +ountries lie ndia" #nited $tates are supposed to havehuge &old reserves that can %e sold in times of need. t also gives these countries anedge in various financial deals. Harious %ans also have huge reserves of &old that areused at times of crisis in the economy. This &old is sold at times of economic crisis tosta%ilie the economy.

AA2$ A2 $TAT#$


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AA2$ A2 $TAT#$$',01$


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WORLD SCENARIO

GOLD PRICE FLUCTUATION


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GOLD PRICE FLUCTUATION

?

7??

C??

9??

E??

>"???

>"7??

>"C??

#$2 &,4

US$/oz, GB/oz.6erage ann!al gold &r$ce $n 2SD9:; and G7P9


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GOLD PRICE-LAST DECADE

CURRENT GOLD PRICE


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CURRENT GOLD PRICE

FACTORS AFFECTING GOLD PRICE


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FACTORS AFFECTING GOLD PRICE

3 I#$4%5+ 5%$ & I#'*5# )(+$(%

3 L5%4/$ )/(% & 4&+'

3 R*/ *# &(+5$*

3 G&+' *#/$#$

Contd.


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Contd.

E)$ & U.S '&++5%

C5#4 *# &%+'/ 4&+' /(+

P5%5+++ )&

G+&5+ )&*) /*$(5$*

AN OVERVIEW OF HOW GOLD PRICE


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AFFECTS THE ECONOMY

I#+5$*

E+)$%*) I#'(/$%

H5+$ S)$&%

A%&/5) I#'(/$%

G+5// I#'(/$%

Contd.


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Contd.

G&+' "*#*#4 I#'(/$%

C&&'*$ "5%


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Seldom 6

Yearly 10

Half-Yearly 5

Quarterly 4

Frequency of investment

seldomB 7C

yearlyB C?

half-yearlyB 7?

/uarterlyB >9

Fre/uency of investment in gold

s eldom yearly half-yearly /uarterly

2 "#S $allmar% ta%en into account


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Yes 12

No

Neutral 5

2! "#S $allmar% ta%en into account

yes

no

neutral

?

7

C

9

>?

>7

,$ Mallmar

*o+ ,rices +ill oost investment


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Stron&ly '&ree

'&ree 5

Neutral

(isa&ree 4

Stron l (isa ree 0

strongly agree agree neutral disagree strongly disagree?

>

7

9

agreeB 9

disagreeB >9

strongly disagreeB 7?

Moarding of gold

s trongly agree agree neutral dis agree s trongly di sagree

&old ,rices +ill $ave adverse eect on t$e economy!


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.ran /ural otal

Stron&ly '&ree ) 0 )

'&ree 6 2

Neutral 5 2

(isa&ree 2 1 )

Stron l (isa ree 2 1 )


>

7

ad6er"e eect on econo(4

ur%an rural

&old ,rice trend +ill remain in t$e economy for a lon& ti


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Stron&ly '&ree 5

'&ree 12

Neutral )

(isa&ree )

Stron&ly (isa&ree 2

"trongl4 agree? #>@

agree? )A@

ne!tral? 1#@

d$"agree? 1#@

"trongl4 d$"agree? A@

re6$e%"

s trongly agree agree neutral di sagree s trongly dis agree

o+ &old ,rices leads to increased sales


44/52

.ran /ural otal

Stron&ly '&ree 4 0 4

'&ree 2 2 4

Neutral 1 1 2

(isa&ree 0 0 0

Stron&ly (isa&ree 0 0 0


?.=

>

>.=

7

7.=

? ?

ncreased sales for traders

ur%an rural

nvestment in &old for future use!


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Stron&ly '&ree 0

'&ree 6

Neutral )

(isa&ree 1

strongly agree agree neutral disagree

?

>

7

gold price project

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