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Gold

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Gold

  1. 1. Basics on Gold
  2. 2. Why Gold? <ul><li>Gold is more than just another commodity, it a currency which evolved in the marketplace over the last 5000 years. </li></ul><ul><li>Gold is a finite resource. In all there are some158,000 tons (4.8 billion ounces) in the world. That equates to just 0.7 ounces per person. </li></ul><ul><li>Supply and demand mismatch. </li></ul><ul><li>Gold mining output has steadily decreased over the past decade. Last year alone, output decreased by 88tons. Overall, mining output of gold each year has declined by about 8 percent per year and it will likely lower as some of the world’s biggest mines in South Africa mature </li></ul><ul><li>There have been no discoveries of gold deposits recently and it can take up to ten years to bring a new mine to full production </li></ul>
  3. 3. Cont… <ul><li>Gold spot prices have averaged a 17 percent annual gain since 2004. </li></ul><ul><li>Gold spot prices tend to move in an inverse relationship with the value of the U.S. dollar. </li></ul><ul><ul><li>The U.S government’s debt levels are unsustainable. So dollar will depreciate once foreign investors decide to cash in their holdings in favor of other currencies or investment. </li></ul></ul><ul><ul><li>The U.S government is increasing the money supply at a record rate – a move that history tells us will cause inflation , further devaluing the dollar. </li></ul></ul><ul><li>Gold provides investors with a sense of security. It act as an insurance policy against the worst of all possible outcomes: war, famine and hyperinflation. </li></ul>
  4. 4. Cont… <ul><li>It is an inflation proof instrument </li></ul><ul><li>If you believe in “buy low, sell high”. Gold is still low, but climbing </li></ul>
  5. 5. Top ten gold producers <ul><ul><ul><ul><ul><li>1. South Africa </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>2. United States </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>3. Australia </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>4. Canada </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>5. China </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>6. Indonesia </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>7. Russia </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>8. PERU </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>9. Uzbekistan </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>10. Ghana </li></ul></ul></ul></ul></ul>
  6. 6. Gold Demand
  7. 7. Factors Affecting Gold <ul><li>Gold price increases when </li></ul><ul><ul><ul><li>Uncertain times </li></ul></ul></ul><ul><ul><ul><li>War and global tension </li></ul></ul></ul><ul><ul><ul><li>High Oil prices </li></ul></ul></ul><ul><ul><ul><li>Rising inflation </li></ul></ul></ul><ul><ul><ul><li>Terrorist Activity </li></ul></ul></ul><ul><ul><ul><li>Economic turmoil </li></ul></ul></ul><ul><ul><ul><li>Weak dollar </li></ul></ul></ul><ul><ul><ul><li>Central bank demand </li></ul></ul></ul>
  8. 8. Participants <ul><li>Speculators </li></ul><ul><li>Arbitragers </li></ul><ul><li>Producers </li></ul><ul><li>Investors </li></ul><ul><li>Hedgers </li></ul>
  9. 9. Why use gold future <ul><li>Liquidity – easy to enter and exit </li></ul><ul><li>Hedging – stock market risk, economic uncertainty, terrorism threat, currency fluctuation., </li></ul><ul><li>Need much less money to participate </li></ul><ul><li>Can eliminate cost of storage </li></ul>
  10. 10. To Trade online in Gold ….. <ul><li>Just add Gold Contracts under MCX segment in the existing Market Watch of your Trading Account with us. </li></ul><ul><li>If you need any assistance in placing orders… </li></ul><ul><li>Contact : 044-39180410, 044-39180411 </li></ul><ul><li>Email : [email_address] </li></ul><ul><li>Visit : www.naviacommodities.com </li></ul>

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