1. GOLD PRICE
FLUCTUATION
ALEX GEORGE
APARNA MOHAN
BIJESH S B
GEETHU K RAVI
RAHUL P M
VINAYAK S L
SOP GROUP 12
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MBA 2011

2. 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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3. 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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4. TYPES OF INVESTMENT
• Physical Metal
• Gold ETF's
• Gold Mining Stock
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5. PHYSICAL METAL
• Jewellery
• Gold Coins
• Tola Bars
• Kilo Bars
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6. 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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7. 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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8. 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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9. Contd…
• Investment in the Bars, Coins.
• Fluctuations in gold prices
• Investment:Wedding,Children,Property,Purchase,
& Emergency
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10. WORLD SCENARIO
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11. GOLD PRICE FLUCTUATION
Average annual gold price in USD and GBP since 1900
US$/oz, GB£/oz
1,400
1,200
1,000
800
600
400
200
0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
USD GBP
Source: Reuters Datastream, World Gold Council
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12. GOLD PRICE:LAST DECADE
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13. CURRENT GOLD PRICE
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14. FACTORS AFFECTING GOLD PRICE
• Integral part of Indian culture
• Largest consumer of gold
• Rise in population
• Gold investment
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15. Contd…
• Effect of U.S dollar
• Change in world’s gold supply
• Parallel economy
• Global economic situation
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16. AN OVERVIEW OF HOW GOLD PRICE
AFFECTS THE ECONOMY
• Inflation
• Electronic Industry
• Health Sector
• Aerospace Industry
• Glass Industry
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17. Contd…
• Gold Mining Industry
• Commodity Market
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18. CONCLUSION
“Be innovative and stop the run for easy money”
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