RELATIONSHIP BETWEEN GOLD AND EQUITY MARKET

1. EQUITY MARKET AND GOLD MARKET

2. EQUITY MARKET
The market in which shares are issued and
traded, either through exchanges Also known as the
stock market, it is one of the most vital areas of a
market economy because it gives companies access
to capital and investors a slice of ownership in a
company with the potential to realize gains based
on its future performance.
There are two types of equity market :
 Primary market
Secondary market

3. Primary market:
It deals with new securities issued for the first time.
 securities are not issued directly to the public but are offered
for sale through intermediaries like issuing houses or stock
brokers.
 Raise more capital by public issues.
Rights issue privilege given to existing share holders first .
Secondary market:
A market where investors purchase securities or assets
from other investors, rather than from issuing companies
themselves. The national exchanges - such as the New
York Stock Exchange and the NASDAQ are secondary
markets.

4. DERIVATIVES MARKET
A security whose price is dependent upon
or derived from one or more underlying
assets. Derivatives are generally used
as an instrument to hedge risk, but can
also be used for speculative purposes.
There are two types :
1. Futures
2. options

5. DERIVATIVES MARKET
OPTIONS:
 Call option is to buy but not the obligation.
 Put option is to sell but not he obligation.
Naked selling is the main difference between futures and
options.
Strike price, Current price, Intrinsic value, Time value
Intrinsic value = current price – strike price

6. BENEFITS OF EQUITY MARKET
1.Taxes are being saved.
2.Flexibility .
3.Diversification of risk.
4.Creating asset for future generation .
5.Transparent market.
6.Small amount can be invested.

7. GOLD MARKET
This is perhaps the best-known form of direct gold ownership.
Many people think of gold bullion as the large gold bars .
Actually, gold bullion is any form of pure, or nearly pure, gold
that has been certified for its weight and purity. This includes
coins, bars, etc.,
There are three factors which affect gold market:
1. Dollars and rupees rates fluctuation.
2. Seasonal demand of gold.
3. Policies of central banks.

8. GOLD PRICE
2001 Rs.4300
2002 Rs.5000
2003 Rs.5700
2004 Rs.5800
2005 Rs.7000
2006 Rs.9000
2007 Rs.10800
2008 Rs.12500
2009 Rs.14500
2010 Rs.18000
2011 Rs.25000
2012 Rs.32000
2013 Rs.29000
GOLD
PRICE FOR
LAST 12
YEARS

10. FOR NEXT LEFT WEEKS:
Working on the relationship between gold and
equity market.
Which of the investment is better in future.
Which market has gain the high growth?
Which market is very flexible ?