Professional Documents
Culture Documents
Presented By: Raveendhar.k Sathish Thalabow Di
Presented By: Raveendhar.k Sathish Thalabow Di
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