Why Invest In Gold

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A case for investing in Gold!

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Why Invest In Gold

  1. 1. GoldnomicsSanjeev Kumar G CFP CMHead of Financial PlanningSanjeev.kumar@jrg.co.in
  2. 2. 10 year I-Bex Chart 7000 5730.73 6000 5000 4000 3000 20002485.82 1000 0 1-Oct-01 1-Oct-02 1-Oct-03 29-Sep-04 29-Sep-05 29-Sep-06 29-Sep-07 28-Sep-08 28-Sep-09 28-Sep-10 28-Sep-11Rs.10000 if invested in bonds in 2001 would have becomeRs.23054 now
  3. 3. 910.10 0 2000 3000 4000 5000 6000 1000 7000 1-Oct-01 1-Apr-02 1-Oct-02Rs.54315 now 1-Apr-03 1-Oct-03 1-Apr-04 1-Oct-04 1-Apr-05 1-Oct-05 1-Apr-06 1-Oct-06 1-Apr-07 1-Oct-07 1-Apr-08 1-Oct-08 1-Apr-09 1-Oct-09 1-Apr-10 1-Oct-10 10 year S&P CNX Nifty ChartRs.10000 if invested in Shares in 2001 would have become 1-Apr-11 1-Oct-11 4943.25
  4. 4. 10 year gold price chart inINR/gram 2614.8 434.4Rs.10000 if invested in Gold in 2001 would have becomeRs.60198 now
  5. 5. WHY GOLD PRICE WENTUP?
  6. 6. Currency Value Erosion
  7. 7. Demand
  8. 8. Supply
  9. 9. WHY IS IT FALLING?
  10. 10. Why is it falling? Selling by Central banks to generate cash Appreciation of dollar against Euro Unwinding of across the board commodity positions by speculators
  11. 11. WHERE IS IT HEADEDFOR?
  12. 12. Demand for Gold Jewelry
  13. 13. Economic Situation Risein investment demand from retailers and as well as from official sector due to  Euro zone crisis- Fear of default by Greece and later on by Portugal and Ireland  Fear of a double dip recession in the US and Europe  Slowing growth in China , fear of real estate market crisis  Low return from stocks  Safe haven investment due to uncertainties  US Fed and ECB can’t resist fromQE for long time  Devaluation of INR against US$ protects the downside
  14. 14. Experts View 140 Analysts Believe Gold is Going UP to at Least $3,000 from current level of $1622.64 by 2012-13-Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com JRG View ◦ Gold prices may reach $2000 and even higher by next 2-3 years
  15. 15. THANK YOUSanjeev Kumar G CFP CMHead of Financial PlanningSanjeev.kumar@jrg.co.in

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