GOLD PRICES IN INDIA

Presented By Amal jose( 06) Anupam Pandala(17) Bhasker Raju(27) C. Ravi Santosh(29) Deepak Prabhakaran(32) Sarika Hablani(91)

ABOUT GOLD
Gold is the best performing assets over the years with continuous price hike. Regulation of gold on international level is done by world gold council. In terms of investment, jewellery consumption and industrial demand, it accounted for 600 tones of total global demand.

FORMS GOLD
Exchange-traded funds Pooled accounts Bullion Mining stock E-Gold

GOLD INSPIRING INVESTORS CONFIDENCE

Dollar edge Volatility Diversification As an asset class

REASON FOR HIKE IN PRICE

PRIMARY REASONS FOR HIKE Investor sees gold as reliable investment. Uncertainty in the economy. Central Bank and IMF. Inflation Gold serves both the purpose of jewellery as well as an investment. Traditions and customs are attached with gold

REASON FOR HIKE IN PRICE

Tendency to buy gold on special occasions Rise in standard of living of the people. Indian follow conservative approach regarding investment.

PRICE RISE GRAPH

PRICE CHANGE IN %AGE

DEMAND

 Gold demand in the third quarter of 2011 reached 1,053.9

tonnes. Gold prices on all time high& Gold demand for ETFs doubled 41% of demand from India & China Investment demand remains strong Jewellery demand in India was sluggish during the seasonally slow months of July and August.

 Since 2003, investment has represented the strongest source of growth in

demand. Industrial, medical and dental technology accounts for around 12% of gold

demand (an annual average of over 434 tonnes from 2005 to 2009).

The growth in investment demand has sparked numerous innovations in gold

investment.

PRICE OUTLOOK

VOLATILE OF GOLD VS EQULITY

VOLATILE OF GOLD VS EQULITY

GROWTH OF GOLD RATE

INFLATION RATE VS GOLD RATE

VOLATILE OF GOLD VS EQULITY

GOLD IMPORTS VS PRICES

%AGE RESERVE

SUPPLY
Gold is produced from mines on every continent except Antarctica, where mining is prohibited. There are several hundred gold mines operating worldwide ranging in scale from minor to enormous. This figure doesnt include mining at the very small-scale, artisanal and often unofficial level.

Today, the overall level of global mine production is relatively stable. Supply has averaged approximately 2,497 tonnes per year over the last several years.
The high value of gold makes recovery economically viable. Between 2005 and 2009, recycled gold contributed an average 32% to annual supply flows. Central banks and multinational organisations hold one-fifth of global stocks of gold as reserve assets .The governments hold around 10% of their official reserves as gold, although the proportion varies country-by-country.

 The advanced economies in Western Europe and North America hold on average over 50% of their external reserves in gold. The appetite for sales among these countries has dwindled away to practically zero. The bulk of sales from central banks have been regulated by the which have stabilised sales from 15 of the world's biggest holders of gold. The gold sales from official sector been diminishing in recent years. Net central bank sales amounted to just 41 tonnes in 2009.

PRICE OUTLOOK
After the economic crisis of 2008 a number of economists and gold traders believe that the increasing wealth with regards to the global population over the past decade was not real. In India gold is still trading in the Rs.27555 for 10 grams, in the past 1 year the glittering metal has gained 22%. Further expected to rise to 1,00,000 for 28 grams by next year and 2,50,000 for 28 grams after that, so this is the best time to invest in gold.

 Value of gold in the government's treasury has grown by over Rs 1, 00,000 crore in about two years. Currently RBI is holding gold estimated at 557.7 tonnes valuing about Rs 1,60,000 crore. The total gold that India holds right now is the 10th largest in the world. WGC had said that the global gold demand had risen by six per cent.

THE END