METALS (GOLD, SILVER COPPER, LEAD)

‡ PRICES ‡ TRADE VOLUME ‡ INTERNATIONAL PRICES

OVERVIEW
Commonly used metals Bullions gold silver Base metals- copper lead

Factors affecting price of gold

y The first factor is rather basic and depends on the simple y

y y

economics of supply and demand The second factor is the gold and other policies of central banks. The banks often invest in gold as a hedge against inflation. Social conditions prevalent. In times of war, emergencies, the price of gold shoots up as the value of the prevalent currency is in doubt. State of the economy. Value of the US Dollar.

Contd
y Any favourable or unfavourable Government gold

policy directly affects current gold prices in India. y World s overall economic situation is a very important factor influencing gold prices in India. y World political situation.
Increase of gold price in the end of 2002 and early 2003 occurred as a result of the attack to Iraq by the U.S. command allies.

Price and production of gold

Demand supply Deficit of gold

Factors affecting price of silver

y Industrial Demand y Gold Prices y US Dollar y Oil Prices

For all metals

y Regulation in Silver Market y Large and Private Institutional Investors

Factors affecting price of copper and lead

y supply, y demand, y Pressure on commodity markets y current stockpiles already in place y Scarcity y Stocks and rate of use y Laws and regulations