QT- FINAL PRESENTATION

8/7/2019 QT- FINAL PRESENTATION

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- GROUP NO. 4


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Introduction

Since ancient times selling gold has always been

a major player in the trade market. It was a

precious material that captivated the eyes of allwho came in contact with it such as the European

settlers as they came to the Americas. This desire

for gold has remained the same up until today.

As such, the price of gold have constantlyfluctuated depending on a host of circumstances

revolving around the acquiring and selling of the

product.


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Factors Affecting Rate of Gold

Presented by:

Pooja Chandnani

Roll no. 20


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The Major factorsthataffectthe price

ofgoldare:

Changes in exchange rate

World political situation

Supply and demand

The global economic situation

Interest rateGrowth in Demand for Jewelry


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Goldand US Dollar Relationship

The relationship between the dollar and gold is tied tothe concept of tangible assets vs. financial assets. To

put it simply, gold has real value, while the dollar is a

representation of real value.

In the 1950s and 1960s, the increasing supply of U.S.dollars along with capital outflows ,aimed at Europes

postwar recovery, put downward pressure on the

dollar.

Eventually, a series of dollar devaluations in the early

1970s ended the Bretton Woods system, allowing the

dollar to be freely traded and freely sold, beginning

the long drawn-out period of the falling dollar.


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AnInverse Relationship

The inverse relationship between gold and US dollar is the most

well-known relationship in currency markets .

The US $ gold price and the Dollar Index generally trend in

opposite directions.This reciprocal relationship between gold and the dollar is

often not evident on a daily or weekly basis, but is almost

always evident during periods of 12 months or longer.

This relation occurs because gold is typically used as a hedge

against inflation through its intrinsic metal value. As the dollarsexchange value decreases, it takes more dollars to buy gold,

increasing the value of gold.

Gold is no longer money in the true meaning of the word, but it

tends to trade as if it were.


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As a result, when the dollar weakens on the foreign exchange

market over an extended period ,then the US $ gold price will

generally rise during the same period; and when the dollar

strengthens over many months the US $ gold price will usually

fall. Most of the time gold responds to trends in the dollar's

foreign exchange value, but there are also times when it responds

to changes in the general level of confidence in paper money

regardless of whether the US $ happens to be a relatively weak or

a relatively strong currency.There have been noticed exceptions to this inverse relationship of

gold and US dollar between April and December 2005.


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-DIVYA G JOSHI

ROLL NO. 49


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GLOBAL DEMAND


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JEWELLERY DEMAND


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INDUSTRIAL & DENTAL DEMAND

Itisadesirable metal for many electronic

components.

Goldhasacharacteristicreferredtoas bio-

compatibility whichopensup severalavenues for

goldinhealthapplicationsincludingthose for

arthritisandcancertreatments.

Goldisalsodemandedinth

e fieldsofnanotechnology,space, engineeringand

architecture.


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INVESTMENT DEMAND


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GOLD DEMAND STATISTICS OF

INDIA

H1 (Jan- June 2009) H1 (Jan- June 2010) % Growth

Tonnes INR (Crores) Tonnes INR (Crores) Volume Value

Jewellery 163 23,600 272.5 45,700 67% 94%

Investment 25.4 3,700 92.5 14,800 264% 300%

Total 188.4 27,300 365 60,500 94% 122%


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FUTURE TRENDS

Strongdemand forjewelleryin Asian

markets

A revivalinthe use ofgoldbythe industrialsector

Robustinvestmentdemandasaresultof

concernover quantitative easing,currency

conflictandinflation fears


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DIFFERENT RATES OF

GOLD IN INDIA

- JINAL DHRUVROLL NO.35


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CITY 22K 24K

DELHI 1849.00 2040.00

MUMBAI 1843.00 1994.50

CHENNAI 1870.00 2008.50

KOLKATA 1856.00 2032.50

PRICES OF GOLD IN DIFFERENTCITIES

OFINDIA


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1700

1750

1800

1850

1900

1950

2000

2050

22k 24k

Delhi

Mumbai

Chennai

Kolkata


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Highestandlowestgold price inlast30

days (inrupees)

CARAT HIGHEST

PRICE

LOWEST

PRICE

DIFFERENCE

24K 2074.00 1977.00 4.91

22K 1929.00 1839.00 4.89


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0

500

1000

1500

2000

2500

Highest

price

Lowest

price

Difference

24k22k


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Pricesofgoldinlast60 days (inrupees)

CARAT HIGHEST

PRICE

LOWEST

PRICE

DIFFERENCE

24K 2080.00 1977.00 5.21

22K 1934.00 1839.00 5.17


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0

500

1000

1500

2000

2500

Highest price Lowest price Difference

24k

22k


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CARAT HIGHEST

PRICE

LOWEST

PRICE

DIFFEREN

CE

24K 2080.00 1970.00 5.58

22K 1934.00 1832.00 5.57

PRICES OF GOLD IN LAST 90 DAYS


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0

500

1000

1500

2000

2500

Highest priceLowest price Difference

24k

22k


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A CASE STUDY

- SONIYA DHANWANI

ROLL NO. 34


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The followingsurveywasconductedat

C.H.JEWELLERS,

BARODA.

The following information was obtained :

The rates of gold from past 35 years .

Gold rate of every year from 1975 to 2010.

Percentage growth in gold rates in every year

from 1975 to 2010.

Percentage growth in gold rates in every 5

years.


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YEAR RUPEES 10GM

1975 540

1976 532

1977 576

1978 685

1979 937

1980 1330

1981 1700

1982 1645

1983 1800

1984 1970

1985 2130

1986 2140

1987 2570

1988 3130

1989 3140

1990 3200


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1991 3466

1992 4334

1993 4140

1994 4598

1995 4680

1996 5160

1997 4725

1998 4045

1999 4235

2000 4400

2001 4300

2002 4990

2003 5600

2004 5850

2005 7000

2006 8400

2007 10800

2008 12500

2009 15185

2010 16350


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0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1970 1980 1990 2000 2010 2020

RUPEES 10GM


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YEAR

PERCENTAGE GROWTH IN - 1

YEAR

1975

1976

1977 8.27%

1978 18.92%

1979 36.78%

1980 41.94%

1981 27.80%

1982 3.24%

1983 9.42%

1984 9.44%

1985 8.12%

1986 0.46%

1987 20.09%

1988 21.78%

1989 0.31%

1990 1.90%


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1991 8.31%

1992 25.04%

1993 4.48%

1994 11.06%

1995 1.78%

1996 10.25%

1997 8.44%

1998 14.40%

1999 4.69%

2000 3.89%

2001 2.28%

2002 16.04%

2003 12.22%

2004 4.46%

2005 19.65%

2006 20.00%

2007 28.57%

2008 15.74%

2009 21.48%


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-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

1970 1980 1990 2000 2010 2020

PERCENTAGEGROWTH IN - 1 YEAR

PERCENTAGE

GROWTH IN - 1

YEAR


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YEA

R GROWTH IN - 5 YEAR

1980 146%

1985 60.15%

1990 50.23%

1995 46.25%

2000 5.99%

2005 59.09%

2010 133.57%


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0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1970 1980 1990 2000 2010 2020

GROWTH IN - 5 YEAR

GROWTH IN - 5

YEAR


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FINAL SURVEY ANALYSIS :

By the interpretation of the tables and graphs, weconclude that there is a huge and drastic increasein gold rates from year 1975 to 2010.

The gold rates on a huge extent had only increasein their rates except on years1976, 1982, 1993, 1998 respectively and that toalso with a very little sum amount.

The highest percentage increase in the gold rateswas in the year 1980 (41.94%) and the lowest was

in the year 1989 (0.31%).


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The 5 year gold rate growth was maximum inthe year 1980 (146%) , it gradually decreased

and then increased at a huge pace in the year

2010(133.57%).

Hence through the following data analysis , we

conclude that there is increase in the rates of

gold with every advancing year.


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THANK YOU

QT- FINAL PRESENTATION

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