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ECONOMICS OF GOLD
GROUP 13
4/15/12

Our approach 4/15/12 GROUP 13 .

During this phase it was advisable to invest in safe investment options. GOLD was the obvious choice  This was because gold has a very less correlation between other asset classes like equity and debt thereby making it a good asset to diversify the overall portfolio  The price of gold was steadily rising during this period.attractive to investors  The article was published around the time of onset of recession. meanwhile Sensex registered a drop of 25 percent  Gold ETFs gained focus and listed close to 20 percent increase in the stock exchange 4/15/12 July 18. 2009 .

 Gold ETFs passively they are open ended mutual funds that are and 4/15/12 managed the OCTOBER 09.GOLD ETF’S & ITS ADV. mirror return of spot price of .

Advantages etf’s of gold 4/15/12 GROUP 13 .

Largest buyers & producers 4/15/12 GROUP 13 .

Largest gold reserves 4/15/12 GROUP 13 .

Imf sells 200 tonnes of gold to rbi  IMF sold 200 metric tonnes of gold to RBI for around 6.7 billion dollars in a bid to raise the institutions financial capacity to lend money to poor nations at concessional rates This 4/15/12 transaction is an important GROUP 13 .

Why did india buy the imf gold?  The liberalization in India was triggered by the balance of payment crisis that our nation was facing  India in order to avoid defaulting the loans our country had pledged its gold to IMF to get a loan  This situation was reversed when IMF sold its gold in order to have enough resources to aid poor nations financially  One of the reasons for the speedy transaction could be that India is ensuring that it has a strong bullion reserve since the dollar was losing its sheen  The sale would also result in larger voting share in the IMF & consequently a larger say in the world economic affairs 4/15/12 GROUP 13 .

tips for investing in gold Historically. the gold. prices of crude oil and dollar 4/15/12 GROUP 13 .

18 to Nov.CORRECTION PRICES   IN GOLD The article was published during the interim period of Nov. 17131 This was likely to come down to Rs.10 an ounce   This was because of a .037% dip in the dollar index The price volatility is mainly on account of continued weakness of the dollar and the recent selling of 200 tonne gold by the IMF to the Reserve Bank  The price rise is also due to the growing interest of the Central Banks to 4/15/12 their reserves increase NOVEMBER 18. the price of gold increased steeply during this phase    The maximum price of gold recorded for the day was Rs. . 30 Owing to the sudden rush of investors and buyers. 16900 in a week’s time Following a similar trend the price of gold hit a record high at the New York Mercantile Exchange at $1148.