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Gold Rate Fluctuations

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GOLD RATE FLUCTUATIONS

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

PROFIT = 12 TIMES

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

PROFIT = 7 TIMES

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

PROFIT = 4 TIMES

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

PROFIT = 1.5 TIMES

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

PROFIT = 1.3 TIMES

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

REASONS FOR THE PRICE RISE

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

REASONS FOR THE PRICE RISE


Dollar crisis: A weak dollar in the wake of the recession has forced people to invest in gold which in the long run would fetch more returns. Dollar is likely to weaken further leading to a further rise in gold prices. Low saving rate: With banks offering lower interest rates, fixed deposits make little sense. It is cheaper to even borrow money to invest in gold.
28/08/2011 PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore 8

REASONS FOR THE PRICE RISE


Inflation: Gold has always been a good tool to fight inflation. Rising inflation rate appreciates gold prices. With inflation rising to record highs, gold will prove to be a safe bet.

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

REASONS FOR THE PRICE RISE


Economic crisis: Gold has always given high returns over a long term. As the crisis triggered a fall in markets across the globe, many investors wary of investing in stocks or bonds, found refuge in gold. Gold is globally accepted and easily convertible into cash.
28/08/2011 PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore 10

REASONS FOR THE PRICE RISE


A fall in gold supply: Gold mining is decreasing and the demand for gold is increasing. Gold supply has decreased by almost 40 per cent as the cost of mining, legal formalities and geographical problems have increased which has led to a fall in gold mining.
28/08/2011 PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore 11

REASONS FOR THE PRICE RISE


US interest rates: The interest rates affect gold prices. Whenever interest rates fall, gold prices rise. Lowering interest rates increases gold prices as gold becomes a better investment option.

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

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REASONS FOR THE PRICE RISE


Political concerns, crisis: Whenever there is a crisis, war, terrorist attack etc, investors rush to prevent erosion of their investments and gold as a safe haven. After 9/11 terror attacks in the United States, the demand for gold had gone up.
28/08/2011 PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore 13

REASONS FOR THE PRICE RISE


Festivals: Indians are among the largest consumers of gold. Gold has been used as ornaments and gifted during festivals and weddings. So there is a huge demand for gold during the festive season.

28/08/2011

PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

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To conclude
Dollar crisis Low saving rate Inflation Economic crisis A fall in gold supply US interest rates Political concerns, crisis Festivals
PS NITHYA, Assitant Professor, RVS College of Engineering and Technology, Coimbatore

28/08/2011

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