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(anopenendedGoldETF)

Addatouchofgoldtoyourportfolio.Gold

Exchange

Traded

Fund.

ByChaitanya Patil

MMS -II

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Tonnes US$/Oz

GoldETFsAddingtothedemand

The inflows into ETFs have thus far continued unabated, buoyed byrally in gold prices.

Safe haven buying is supporting the price of Gold.Source:Bloomberg,WorldGoldCouncil,Gold.org

3

50150

880

2003 2004 2005 2006 2007 2008 2009 2010

300

200

1100

1000

900

800

700

600

500

400

1200GlobalETFDemand(Tonnes)-CumulativeGoldPrice(US$/Oz)

2000

1800

1600

1400

1200

1000

800

600

400

200

0

650

560

330

210

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Tonnes

US$/Oz

9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 08

GoldMarketDynamicsSupplyDecliningMineProductionReal value of Gold will increase in the long term as production

declines

GoldMineproductionhasbeenonadeclinepeakproductionwasintheyear2001over2,600tonnes

Source:U.SGeologicalSurvey,Bloomberg

2,700

2,600

2,500

2,400

2,300

2,200

2,100

2,000

900

800

700

600

500

400

300

200

Gold Mine Production(1992-2010)

Price of Gold

Gold MineProduction

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

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Tonnes

199619971998199920002001200220032004200520062007200820092010

2000

1500

1000

500

0

Source: WorldGoldCouncil,Gold.org

3500

3000

2500

GoldMarketDynamicsDemandvs.Supply(Gapwidening)

4000

DemandSupply

Deficit

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WHY TO INVEST IN GOLD???

Major threat of decrees supply.

Declining production and increasing demand

Central banks selling lessdeclining trend.

Strong demand for Gold in emerging markets particularly Indiaand China.

Strong investment demandinvestments in Gold.

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HOW TO INVEST IN GOLD?

Physical Gold/Jewelry

Commodity Exchange

ETFs

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WHAT IS GOLD ETF Gold ETF is a security listed on the stock

exchange available for trading with an intentionto offer investors a means of participating in the

gold bullion market without the necessity oftaking physical delivery of gold.

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WHY BUY GOLD ETFS ?Gold Exchange Traded Funds are listed

on the stock exchange.

They are not in physical nature.

Retail investors can buy gold as little as 1gram or less.

Its 99.95% pure.

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HOW TO BUY ?Need to have DEMAT account.

Can buy or sell on stock exchanges likeNSE/BSE.

Investment like as SIP.

How it will work?

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OPTIONS AVAILABLE IN INDIA

Gold Bees ETF UtI Gold ETF Kotak Gold ETF Reliance Gold ETF

Quantum Gold ETF SEBI Gold ETF Religare Gold ETF HDFC Gold ETF

ICICI Gold ETF Axis Gold ETF Birla Sun Life Gold ETF

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GOLDETFVS.BUYINGPHYSICALGOLDParameters Gold ETF Jewelry Banks

Mode Demat Jewelry/Bar/Coins Bar/Coins

Safety/Storage No risk of theft High Risk High Risk

Purity of Gold 99.5% or higher Cant say High on Purity

PricingTransparent, Low

on cost.Cant say

High Mark up

LiquidityOn business dayson the exchange

Relatively LowLiquidity

Low on Liquidity

Denomination 1unit(1gramofGold)Pre-defined

Pre-defined

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THANK YOU!!!

Any Quarries???