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    Gold is the oldest precious metal known and accounts for over two thirds of total accumulated value as an investment asset. While gold production is widespread, the top five producing countries are China, United States, South Africa, Australia, and Peru. India is the largest consumer of gold with annual demand of 800 tons. The price of gold is influenced by macroeconomic factors, comparative stock returns, and supply from central bank sales and scrap. MMTC, the largest bullion supplier in India, offers gold to domestic users and exporters on a loan, outright, or replenishment basis requiring bank guarantees, demand drafts, or initial deposits.

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    gold commodity profile

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    Gold is the oldest precious metal known and accounts for over two thirds of total accumulated value as an investment asset. While gold production is widespread, the top five producing countries are China, United States, South Africa, Australia, and Peru. India is the largest consumer of gold with annual demand of 800 tons. The price of gold is influenced by macroeconomic factors, comparative stock returns, and supply from central bank sales and scrap. MMTC, the largest bullion supplier in India, offers gold to domestic users and exporters on a loan, outright, or replenishment basis requiring bank guarantees, demand drafts, or initial deposits.

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    287 views24 pages

    Presented By: Raveendhar.k Sathish Thalabow Di

    Uploaded by

    raveendhar.k
    Gold is the oldest precious metal known and accounts for over two thirds of total accumulated value as an investment asset. While gold production is widespread, the top five producing countries are China, United States, South Africa, Australia, and Peru. India is the largest consumer of gold with annual demand of 800 tons. The price of gold is influenced by macroeconomic factors, comparative stock returns, and supply from central bank sales and scrap. MMTC, the largest bullion supplier in India, offers gold to domestic users and exporters on a loan, outright, or replenishment basis requiring bank guarantees, demand drafts, or initial deposits.

    Copyright:

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    of 24

    Gold

    Presented by
    Raveendhar.k
    Sathish thalabowdi
    Introduction:
    vGold is the oldest precious metal known to man.
    vTherefore, it is a timely subject for several reasons.
    vIt is the opinion of the more objective market experts that
    the traditional investment vehicles of stocks and bonds are
    in the areas of their all-time highs and maybe due for a
    severe correction.
    vTo fully appreciate why 8,000 years of experience say "
    gold is forever", we should review why the world reveres
    what England's most famous economist, John Maynard
    Keynes, cynically called the "barbarous relic."
    Contd..,
     Gold is primarily a monetary asset and partly a commodity.
     More than two thirds of gold's total accumulated holdings account as 'value
    for investment' with central bank reserves, private players and high-carat
    Jewellery.
     Less than one third of gold's total accumulated holdings is as a 'commodity'
    for Jewellery in Western markets and usage in industry.
     The Gold market is highly liquid and gold held by central banks, other major
    institutions and retail Jewellery keep coming back to the market.
     Due to large stocks of Gold as against its demand, it is argued that the core
    driver of the real price of gold is stock equilibrium rather than flow
    equilibrium.
     Economic forces that determine the price of gold are different from, and in
    many cases opposed to the forces that influence most financial assets.
     South Africa is the world's largest gold producer with 394 tons in 2001,
    followed by US and Australia.
     India is the world's largest gold consumer with an annual demand of 800
    tons.
    Global scenario:
    Supply
    Gold mine production in 2008

    1. China: 288mt (1)


    2. United States: 234mt (1)
    3. South Africa: 232mt (1)
    4. Australia: 225mt
    5. Peru: 175mt
    6. Russia: 163.9 mt
    7. Canada: 100mt
    8. Indonesia: 90mt
    9. Uzbekistan 85mt
    10. Ghana 81mt
    Other: 660mt TOTAL: 2356m
    World Gold Production Vs South Africa
    (Million Ounces)
    Indian scenario:
    Indian Gold (tonnes) and Prices
    (rupees)
    Indian Gold Demand in tones
    and rupee gold price
    Gold jewellery export from India
    GMTR of gold
    World major markets
     London as the great clearing house
     New York as the home of futures trading
     Zurich as a physical turntable
     Istanbul, Dubai, Singapore and Hong Kong as
    doorways to important consuming regions
     Tokyo where TOCOM sets the mood of Japan
     Mumbai under India's liberalized gold regime i
    Spot market prices:
    Gold future market
    Gold 10 grams Gold guinea 8 grams

    New York NYMCE futures


    Gold ETF
     Exchange Traded Funds are passively
    managed funds tracking a benchmark index
    and reflect the performance of that index.
    They have the flexibility of trading on stock
    exchanges like a share and offer best
    features of open and close end funds.
    Market Moving Factors
     Above ground supply from sales by central
    banks, reclaimed scrap and official gold
    loans
     Producer / miner hedging interest
     World macro-economic factors - US Dollar,
    Interest rate
     Comparative returns on stock markets
     Domestic demand based on monsoon and
    agricultural output
    Constraints in Development of
    Commodity
     Exchange rate fluctuation.
     Seasonality of Demand.
     Purity of Gold Ornaments.
     Increase cost of production in Gold mines.
     Decline in the Gold mine production.
     Demand exhibits income elasticity,
    particularly in the rural and semi-urban areas
    U want to know how to
    buy..
    MMTC’S BULLION SUPPLY SCHEMES

     FOR SALES TO DOMESTIC USERS:


    - On Loan
    ØTo register themselves with MMTC
    ØBank guarantee covering 110% notional value
    ØLoan is for 90 days.
    - On Outright Basis
    ØTo register themselves with MMTC
    ØDemand draft/ banker's cheque/ etc
    ØDelivery of material after receipt of the amount in
    MMTC's bank account.
    Contd..,
     FOR EXPORTERS:
    - On Loan
    ØBank Guarantees of required values covering cost of gold
    Ørepaid and exported within prescribed days as per Foreign
    Trade Policy
    - Outright Basis
    Øthe notional value of gold (in the form of DD/Banker’s
    cheque/ High value cheque)
    Øexporter against payment of the differential
    Ø- On Replenishment Basis
    ØThe quantity of precious metal booked shall be equivalent
    to the precious metal content in the exported product and
    the admissible wastage.
    Øinitial deposit of 20%

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