by sagar & group

2. Golden words from:
1. SAGAR BATHIJA (5)
2. HARSH HINGORANI (15)
3. MAKHIJA JUHI (25)
4. RADHA SINGH(45)
5. FARID SAYYED(55)

3. What is a Commodity?
 In economics a commodity is the general term
means any item produced that satisfies human
wants & needs. Commodities are of two types
 AGRO COMMODITY
 NON – AGRO COMMODITY

4. Introduction TO COMMODITY
MARKET
 COMMODITY MARKET IS A PLACE WHERE TRADING IN LISTED
COMMODITIES TAKE PLACE.
 IN INDIA THERE ARE TWO MAJOR COMMODITY EXCHANGE MCX &
NCDEX.
 THEY ARE REGULATED BY FORWARD MARKET COMISSION (FMC).
 MCX HAS THE LARGEST TURNOVER OF GOLD.

5. Introduction
 Gold has been widely used throughout the world as a
vehicle for monetary exchange
 Gold is the most highly prefer for precious metal, since
pre-historic times, for coinage, jewellery.
 India is the largest consumer of gold
 Gold is basically an un productive commodity, in India
gold is mainly prefer for traditionally belief

6. Types of investment
• Physical :
 Jewellery
 Coins/Bars
• Non-Physical :
 Gold mining shares
 ETFs
 Futures (can be converted into Physical)
 E Gold (can be converted into physical)

8. • Year – Gold prices in Rs.
2001 – 4300
2002 – 4990
2003 – 5600
2004 – 5850
2005 – 7000
2006 – 8400
2007 – 10800
2008 – 12500
2009 – 15185
2010 – 16350
2011 – 22300
2012 – 32300
• In 1975 the price of 10 gram gold was only Rs 540 while in
1980 it was 1330.

9. ADVANTAGE OF INVESTING IN GOLD
 SAFETY
INFLATION HEDGE
LIQUIDITY
EFFECTIVE PORTFOLIO DIVERSIFIER
SECURITY FOR LOANS
 APPRECIATION IN ASSET VALUE

10. FACTORS INFLUENCING GOLD
PRICES
FESTIVE SEASONS
 INFLATION
 RECESSION
AWARENESS AMONG THE PEOPLE
 US DOLLAR
GIVE SCHEMES OR OFFER’S TO
CONSUMER
CENTRAL BANK DEMAND

11. China (Mine production: 355 tons)
Australia (270 tons) United States (237 tons)
Russia (200 tons) South Africa (190 tons)

12. MAJOR GOLD MINE’S IN
INDIA

15. Brokerage Calculation
BROKERAGE FOR CLIENT
GOLD PER 1 KG
GOLD PRICE PER 10 GM 32000 3200000
BROKERAGE 0.04% 1280
SERVICE TAX (10.2%) 131
TURNOVER CHARGES (0.005%) 160
SERVICE TAX ON TURNOVER CHARGES (10.2%) 16
STAMP DUTY ON TURNOVER (0.001%) 32
TOTAL COST 1619

18. Future and spot market
Futures Spot

19. Derivatives Defined
• A derivative is a product whose value is derived from the value of one or
more underlying variables or assets in a contractual manner.
• E g.:- If the prices of Milk goes up then on the other hand prices of curd
will go up.

20. FUTURES
CONTRACT
LEGAL BINDING AGREEMENT TO BUY OR SELL
UNDERLYING ASSET IN FUTURE
QUANTITY- LOT SIZED FIXED
DELIEVERY TIME- EXPIRY DATE FIXED

21. Introduction TO GOLD
FUTURES
 GOLD FUTURES ARE STANDARIZED CONTRACT
 Any investor can buy and sell in the gold futures
market providing that they can meet the margin
requirements and are willing to pay commissions.
They buy and sell futures contracts looking to
profit from the movement of gold .

22. Advantages of Gold Futures(MCX)
Platform
• Online Terminal (View/Trade at the comfort of
your home/office)
• High depth/liuidity (MCX is no:1in India and no:2
in world as per its website)
• Different denominations available (I kg , 100g)
• Trading hours(10 am to 11:30 pm) covers all
major mkts.
• Take/give delivery if you want
• Store/Sell from demat
• Margins as lo to 5 to 10%

23. BASIC PURPOSE OF GOLD
FUTURES
 HEDGING
SPECULATION
ARBITRATION

29. Introduction to Coal

32. As per 2012
Sector wise coal usage

39. Contract Specification of Coal
Contract Specification of Coal (monthly clearing)-Orissa Contract
Symbol Coal Energy
Description icoalmkolddmmyy
Contract available for trading
Duration of contract 2 months
Commencement of contract first Wednesday
Trading period Monday to Saturday
Trading session mon to fri 10 am to 11:30 pm
sat 10 am to 2 pm
Trading unit 50 ton
Quotation base value 100 kg
Maximum order size 100 ton
Initial margin 5%
Special margin if additional volatility
Tick size ( min price
movement) RE. 10

40. Symbol Exp. date Price Lot size amount Margin Margin Tick size
/100kg %
Coal Jan 4000 10 MT 400000 5% 20000 Re. 1
mini 20,2013 Ton
SYMBOL EXP DATE PRICE/ LOT SIZE AMT MARGIN MARGIN TICK SIZE
100KG % AMT
COAL JAN 4000 50 MT 2000000 5% 100000 RE.10
20,2013 TON

41. CONCLUSION
Long term players in gold- should hold on.
Short profit bookers-should sell.
Making loss-they should hedge in gold
 coal is an good investment .
 coal must be a good investment in your portfolio
We here by concluded that every person put there
25% of investment amount in gold