A PROJECT REPORT SUBMITTED TO THE FACULTY OF

DECCAN SCHOOL OF MANAGEMENT OSMANIA UNIVERSITY, HYDERABAD (A.P)

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION BY

FARHANA BEGUM (1077-10-672-043)

DECCAN SCHOOL OF MANAGEMENT DAR-US-SALAM, NAMPALLY HYDERABAD 500001, ANDHRA PRADESH INDIA.

DECLARATION

I, FARHANA BEGUM Bearing the enroll number 1077-10-672-043, studying in Deccan School of Management For MBA, declare that the report of the project entitled GOLD TRADING IN COMMODITY MARKET is the result of the original work done by me and have not submitted earlier to OSMANIA UNIVERSITY or any other Institution for the award of any degree, diploma and does not form part of any other course. This project is submitted in partial fulfillment for the award of degree of Masters of business administration (MBA) from osmania university, Hyderabad.

FARHANA BEGUM

Annexure-C (Examiners Certificate)

The project report GOLD TRADING IN COMMODITY MARKET Submitted by

FARHANA BEGUM 1077-10-672-043

Is approved and is acceptable in quality and form

Internal Examiner (Name, Signature)

External Examiner (Name, signature)

Annexure- D (University Study Centre Certificate) CERTIFICATE This is to certify that the project work entitled GOLD TRADING IN

COMMODITY MARKET was carried out by FARHANA BEGUM in partial fulfillment of the requirements for the award of Masters of Business Administration (MBA) by Osmania University during the period March under our guidance. February-

The results embodied in this project have not been submitted to any other University or institution for the award of any degree or diploma.

Internal guide: Name & Signature

Acknowledgment

Apart from the efforts taken by me in this project, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere Thanks to all of them.

I am highly indebted to Mrs. Sadia Saba Hussain for her guidance and constant supervision as well as for providing necessary information regarding the project & also for her support in completing the project.

I would like to express my gratitude towards franchise members, Hyderabad of Ventura Securities Limited for their kind co-operation and encouragement who helped me in completion of this project.

I would also like to express my special gratitude and thanks to industry persons for giving me such attention and time.

My thanks and appreciations also go to Mr. Mohammed Ismail in developing the project and people who have willingly helped me out with their abilities.

ABSTRACT
The topic selected for the project work is the significance of

GOLD TRADING IN COMMODITY MARKET with reference to Ventura Securities Limited Hyderabad. The Importance of the project is that it he

INDEX
CHAPTER-I

Introduction to the study

 Need and importance of the study Scope of the study Objectives of the study Sources of data Limitations CHAPTER- II Company profile CHAPTER-III Theoretical review CHAPTER IV Data analysis &Interpretations CHAPTER -V Findings & suggestions BIBLIOGRAPHY ANNEXURES

CHAPTER-1
INTRODUCTION
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INTRODUCTION:
The retail investors could have done very little to actually invest in commodities such as gold and silver or oilseeds in the futures market. This was nearly impossible in commodities except for gold and silver as there was practically no retail avenue for pumping in commodities.

However, with the setting up of three multi-commodity exchanges in the country, retail investors can now trade in commodity futures without having physical stock. Commodities actually offer immense potential to become a separate asset class for market survey investors, arbitrageurs and speculators. Retail investors, who claim to understand the equity markets, may find commodities an unfathomable market. . But commodities are easy to understand as far as fundamentals of demand and supply are concerned. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option

NEED AND IMPORTANCE OF THE STUDY

The era of liberalization has revolutionized the commodity market. In such a scenario it is necessary to make an assessment of commodity market .as more and more investors are seeking commodity market as of the important investment avenues, it is neccesary to make a detailed analysis.such an analysis will help any person who is to invest in commodity market.

SCOPE OF THE STUDY

The analysis is based on commodity trading specifically in gold futures market. The analysis is based on six (6) month prices on daily basis to show the friend of the bullion market. The analysis is based on opening and closing price of gold in commodity market. The study is conducted based on four types of gold products i.e. Gold Gold hni Gold guinea and Gold mini only

OBJECTIVES OF THE STUDY

TO study the commodities trading and its clearing settlements To study the commodity trading with reference to gold.

To analyze the gold trend in commodity market

SOURCES OF DATA
The data is collected from secondary sources mainly from financial websites Primary source of data :- no primarily source of data is used. Secondary source of data :- The secondary data is collected from Hyderabad inter connected stock exchange and various internet sources

LIMITATIONS

A technical analysis is done using 3day moving averages. The present study takes in to consideration of 6 month data of gold prices. This analysis will be holding good for a limited time period i.e. based on present scenario and study conducted, future movement of price may or may not be similar.

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CHAPTER-II

11

COMPANY PROFILE

12

COMPANY PROFILE

OBJECTIVES OF VENTURA SECURITIES LTD

Create a single integrated national level solution with access to multiple markets for providing high cost-effective service to millions of investors across the country.

Create a liquid and vibrant national level market for all listed companies in general and small capital companies in particular.

Optimally utilize the existing infrastructure and other resources of participating Stock Exchanges, which are under-utilized now.

Provide a level playing field to small Traders and Dealers by offering an opportunity to participate in a national markets having investment-oriented business.

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 Provide clearing and settlement facilities to the Traders and Dealers across the Country at their doorstep in a decentralized mode.

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15

16

17

CHAPTER III

18

THEORETICAL REVIEW
INTRODUCTION
Commodities Futures trading in India has a long history. The first commodity futures market appeared in 1875. But the new standardized form of trading in the Indian capital market is an attractive package for all the people who earn money through speculation by trading into FUTURES. It is a well-known fact and should be remembered that the trading in commodities through futures exchanges is merely, old wine in a new bottle. The trading in commodities was started with the first transaction that took place between two individuals. We can relate this to the ancient method of trading i.e., BARTER SYSTEM. This method faced the initial hiccups due to the problems like: store of value, medium of exchange, deferred payment, measure of wealth etc. This led to the invention of MONEY. As the market started to expand, the problem of scarcity piled up. The farmers / traders then felt the need to protect themselves against the fluctuations in the price for their produce. In the ancient times, the commodities traded were the Agricultural Produce, which was exposed to higher risk i.e., the natural calamities and had to face the price uncertainty. It was certain that during the scarcity, the farmer realized higher prices and during the oversupply he had to loose his profitability. On the other hand, the trader had to pay higher price during the scarcity and vice versa. It was at this time that both joined hands and entered into a contract for the trade i.e., delivery of the produce after the harvest, for a price decided earlier. By this both had reduced the future uncertainty.

What is Commodity? Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In short commodity includes all kinds of goods. Indian Forward Contracts (Regulation) Act (FCRA), 1952 defines goods as every kind of movable property other than actionable claims, money and securities.

The term refers to a whole range of natural resources that are used to create the goods that people buy and the food they eat. Says Jeremy Baker, USB's Zurich-based head of Commodity Research'.

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A commodity may be defined as an article, a product or material that is bought and sold. It can be classified as every kind of movable property, except Actionable Claims, Money & Securities. Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. Retail investors, who claim to understand the equity markets, may find commodities an unfathomable market. But commodities are easy to understand as far as fundamentals of demand and supply are concerned. Retail investors should understand the, risks and advantages of trading in commodities futures before taking a leap. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option. What is a commodity Market? Commodity market is a place where trading in commodities takes place. Markets where raw or primary products are exchanged. These raw commodities are traded on r egulated commodities exchanges, in which they are bought and sold in standardized Contracts. It is similar to an Equity market, but instead of buying or selling shares one buys or sells commodities. Commodity market is an important constituent of the financial markets of any country. It is the market where a wide range of products, viz., precious metals, base metals, crude oil, energy and soft commodities like palm oil, coffee etc. are traded. It is important to develop a vibrant, active and liquid commodity market. This would help investors hedge their commodity risk, take speculative positions in commodities and exploit arbitrage opportunities in the market. In fact, the size of the commodities markets in India is also quite significant. Of the country's GDP of Rs 13, 20,730 crores (Rs 13,207.3 billion), commodities related (and dependent) industries constitute about 58 per cent. Currently, the various commodities across the country clock an annual turnover of Rs 1, 40,000 crores (Rs 1,400 billion). With the introduction of futures trading, the size of the commodities market grows many folds here on. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non-ferrous metals, cereals and pulses, ginned and un-ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar and gur, potatoes and onions, coffee and tea, rubber and spices. Etc. History of Evolution of commodity markets

Historically, dating from ancient Sumerian use of sheep or goats, or other peoples using pigs, rare seashells, or other items as commodity money, people have sought ways to standardize and trade contracts in the delivery of such items, to render trade itself more smooth and predictable.

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Zsome one elses lower offer. That keeps the market as efficient as possible, and keeps the traders on their toes to make sure no one gets the purchase or sale before they do.

INTERNATIONAL COMMODITIES EXCHANGES Chicago board of trade (CBOT) 1848

London metal

exchange (LME) 1877

London international financial futures exchange (LIFFE) 1979 Tokyo commodity exchange (TOCOM) 1984 Shanghai metal exchange (SHME) Dahlia commodity exchange (DCE) 1993

PARTICIPANTS OF COMMODITY MARKET

Hedgers
Hedging involves buying or selling of a standardized futures contract against the corresponding sale or purchase respectively of the equivalent physical commodity. The benefits of hedging flow from the relationship between the prices of contracts (either ready or forward) for physical delivery and those of futures contracts. So long as these two sets of prices move in close unison and display a parallel (or closely parallel) relationship, losses in the physical market are offset, either fully or substantially, by the gains in the futures market. Hedging thus performs the economic function of helping to reduce significantly, if not eliminate altogether, the losses emanating from the price risks in commodities. Hedgers are often businesses, or individuals, who at one point or another deal in the underlying cash commodity. Take an example: A Hedger pay more to the farmer or dealer of a produce if its prices go up. For protection against higher prices of the produce, he hedges the risk exposure by buying enough future contracts of the produce to cover the amount of produce he expects to buy. Since cash and futures prices do tend to move in tandem, the futures position will profit if the price of the produce raises enough to offset cash loss on the produce.

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Speculators
Speculators are some what like a middle man. They are never interested in actual owing the commodity. They will just buy from one end and sell it to the other in anticipation of future price movements. They actually bet on the future movement in the price of an asset. They are the second major group of futures players. These participants include independent floor traders and investors. They handle trades for their personal clients or brokerage firms. Buying a futures contract in anticipation of price increases is known as going long. Selling a futures contract in anticipation of a price decrease is known as going short. Speculative participation in futures trading has increased with the availability of alternative methods of participation.

Speculators have certain advantages over other investments they are as follows: If the traders judgment is good, he can make more money in the futures market faster because prices tend, on average, to change more quickly than real estate or stock prices. Futures are highly leveraged investments. The trader puts up a small fraction of the value of the underlying contract as margin, yet he can ride on the full value of the contract as it moves up and down.

Arbitrators
According to dictionary definition, a person who has been officially chosen to make a decision between two people or groups who do not agree is known as Arbitrator. In commodity market Arbitrators are the people who take the advantage of a discrepancy between prices in two different markets. If he finds future prices of a commodity edging out with the cash price, he will take offsetting positions in both the markets to lock in a profit. Moreover the commodity futures investor is not charged interest on the difference between margin and the full contract value.

DERIVATIVES
Another major leap in the development of commodities markets is the growth in commodities derivative segment. Derivatives trading has a long history. The first recorded incident of commodities trade was traced back to the times of ancient Greece. In the year 1688 De la Vega reported

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the trading in 'time bargains' which were the then commonly used terms for options and futures.

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Meaning of Derivatives: A derivative is a product whose value is derived from the value of one or more underlying variables or assets in a contractual manner. The underlying asset can be equity, forex, commodity or any other asset.

. TYPES OF DERIVATIVE CONTRACTS The following are the various types of derivatives. They are FORWARD CONTRACT A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at todays pre-agreed price. FUTURE CONTRACT A futures contract is an agreement between two parties to buy or sell an asset in a certain time at a certain price; they are standardized and traded on exchange. OPTIONS Options are of two types-call option and put option. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date. WARRANTS Options generally have lives of up to one year; the majority of options traded on options exchanges having a maximum maturity of nine months. Longer-dated options are called warrants and are generally traded over-the counter. LEAPS The acronym LEAPS means long-term Equity Anticipation securities. These are options having a maturity of up to three years. BASKETS

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Basket options are options on portfolios of underlying assets. The underlying asset is usually a moving average of a basket of assets. Equity index options are a form of basket options. SWAPS Swaps are private agreements between two parties to exchange cash floes in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. The two commonly used Swaps areInterest rate Swaps These entail swapping only the related cash flows between the parties in the same currency. Currency Swaps These entail swapping both principal and interest between the parties, with the cash flows in on direction being in a different currency than those in the opposite direction. SWAPTION Swaptions are options to buy or sell a swap that will become operative at the expiry of the options. Thus a swaption is an option on a forward swap

COMMODITY EXCHANGES REGISTERED IN INDIA

Commodity Exchange Bhatinda Om & Oil Exchange Ltd., Products Traded Gur Sunflower Oil Cotton ( Seed and Oil)

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Safflower ( Seed , Oil and Oil Cake) The Bombay commodity Exchange Ltd Groundnut ( Nut and Oil) Castor Oil, Castor seed Sesamum ( Oil and Oilcake) Rice bran, rice bran oil and oil cake Crude palm oil The Rajkot Seeds Oil & Bullion Merchants Association Ltd. The Kanpur Commodity Exchange Ltd., Te Meeerut Agro commodities Exchange Co., Ltd. The Spices and Oilseeds exchange Ltd., Sangli Ahmedabad Commodities Exchange Ltd Vijay Beopar Chamber Ltd., Muzaffarnagr India Pepper & Spice Trade Association, Kochi Rajadhani Oils and Oil seeds Exchange Ltd.,Delhi Groundnut Oil, Castro Seed

Rapeseed / Mustard seed oil and cake. Gur

Turmeric Cottonseed, castor seed Gur Pepper Gur, Rapeseed / Mustard Seed Sugar Grade M Rapeseed / Mustard Seed / Oil / Cake Soyabean / Meal / Oil / Crude Palm Oil

National Board of Trade, Indore

The Chamber of Commerce, Hapur The East India Cotton Association, Mumbai The central India Commercial Exchange Ltd Gwaliar The east India Jute & Hessain Exchange Ltd., Kolkata First Commodity Exchange of India Ltd., Kochi

Gur, Rapeseed / Mustard seed Cotton Gur

Hessain, Sacking

Copra, Coconut Oil & Copra Cake

How to invest in a Commodity Market?

With whom investor can transact a business?

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An investor can transact a business with the approved clearing member of previously mentioned Commodity Exchanges. The investor can ask for the details from the Commodity Exchanges about the list of approved members. What is Identity Proof? When investor approaches Clearing Member, the member will ask for identity proof. For which Xerox copy of any one of the following can be given a) PAN card Number b) Driving License c) Vote ID d) Passport What statements should be given for Bank Proof? The front page of Bank Pass Book and a canceled cheque of a concerned bank. Otherwise the Bank Statement containing details can be given. What are the particulars to be given for address proof? In order to ascertain the address of investor, the clearing member will insist on Xerox copy of Ration card or the Pass Book/ Bank Statement where the address of investor is given. What are the other forms to be signed by the investor? The clearing member will ask the client to sign a) Know your client form b) Risk Discloser Document The above things are only procedure in character and the risk involved and only after understanding the business, he wants to transact business. What aspects should be considered while selecting a commodity broker? While selecting a commodity broker investor should ideally keep certain aspects in mind to ensure that they are not being missed in any which way. These factors include Net worth of the broker of brokerage firm. The clientele. The number of franchises/branches. The market credibility. The references.

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The kind of service provided- back office functioning being most important. Credit facility.

Broker:-

The Broker is essentially a person of firm that liaisons between individual traders and the commodity exchange. In other words the Commodity Broker is the member of Commodity Exchange, having direct connection with the exchange to carry out all trades legally. He is also known as the authorized dealer.

How to become a Commodity Trader/Broker of Commodity Exchange?

To become a commodity trader one needs to complete certain legal and binding obligations. There is routine process followed, which is stated by a unit of Government that lays down the laws and acts with regards to commodity trading. A broker of Commodities is also required to meet certain obligations to gain such a membership in exchange. To become a member of Commodity Exchange the broker of brokerage firm should have net worth amounting to Rs. 50 Lakhs. This sum has been determined by Multi Commodity Exchange.

How to become a Member of Commodity Exchange?

To become member of Commodity Exchange the person should comply with the following Eligibility Criteria. 1. He should be Citizen of India. 2. He should have completed 21 years of his age. 3. He should be Graduate or having equivalent qualification. 4. He should not be bankrupt. 5. He has not been debarred from trading in Commodities by statutory/regulatory authority, The commodities Depository account may be credited in the following situations: 1. Demat

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2. 3.

Revalidation Actual purchase from market.

Entities involved in the DEMAT process Issuer: The issuer is an entity, which floats the physical paper document. It would be a company in case of the share certificate or warehouse in case of warehouse receipt. The Registrar and Transfer Agents: It acts on behalf of the issuer as an interface between the issuer and the depository for converting the physical warehouse receipt in the demat form. The Depository: The Depository maintains the records of the beneficial owner in its books. Presently there are two depositories in India i.e. National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL)

Types of Demat Account

Beneficiary Owner Account is used to hold and transact in commodity balances. The depositor is required to quote this account number at the time of depositing commodity in the warehouse. The commodity balances are credited in this type of account. All the investors trading in the commodity markets are required to separately open beneficiary owner account for commodity. The existing demat account for securities cannot be used for the purpose of holding and transacting in the commodity. Unlike the securities demat account, the investors need to open the commodity demat account with both the depositories i.e. NSDL and CDSL. The basic reason behind opening the account in both the depositories is that the Depositories have not yet started Inter-Depository transfer in case of commodities. Clearing Member Pool Account is used for the purpose of settlement of delivery obligation. The account is used by the member for giving or receiving delivery of commodity to or from the Clearing House of the Exchange. In short the pay-in and pay-out of the exchange is settled through this account. All the members of the exchange are required to open the CM Pool Account with both the depositories. This cannot be used for holding the commodity.

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Concept of International Commodity Identification Number (ICIN)

ICIN refers to International Commodity Identification Number. Commodities that have been dematerialized are identified by its unique code (i.e. ICIN) allotted by depository. ICIN is generated on the uniqueness of the following 4 parameters: Commodity. Warehouse Location. Grade / Fineness of the commodity. Validity date of the commodity.

guarantees demanded by the participants.

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31

Chapter - IV

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GOLD

4.1. INTRODUCTION

Gold is a unique asset based on few basic characteristics. First, it is primarily a monetary asset, and partly a commodity. As much as two thirds of golds total accumulated considerations. Holdings in this category include the central bank reserves, private investments, and high-cartage jewelry bought primarily in developing countries as a vehicle for savings. Thus, gold is primarily a monetary asset. Less than one third of golds total accumulated holdings can be considered a commodity, the jewelry bought in Western markets for adornment, and gold used in industry. Some analysts like to think of gold as a currency without a country. It is an internationally recognized asset that is not dependent upon any governments promise to pay. This is an important feature when comparing gold to conventional diversifiers like T-bills or bonds, which unlike gold, do have counter-party risk Gold is a monetary metal whose price is determined by inflation, by fluctuations in the dollar and U.S. stocks, by currency-related crises, holdings relate to store of value

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interest rate volatility and international tensions, and by increases or decreases in the prices of other commodities. The price of gold reacts to supply and demand changes and can be influenced by consumer spending and overall levels of affluence. Gold is different from other precious metals such as platinum, palladium and silver because the demand for these precious metals arises principally from their industrial applications. Gold is produced primarily for accumulation; other commodities are produced primarily for consumption. Golds value does not arise from its usefulness in industrial or consumable applications. It arises from its use and worldwide acceptance as a store of value. Gold is money.

4.2. WHAT MAKES GOLD SPECIAL?

Timeless and Very Timely Investment: For thousands of years, gold has been prized for its rarity, its beauty, and above all, for its unique characteristics as a store of value. Nations may rise and fall, currencies come and go, but gold endures. In todays uncertain climate, many investors turn to gold because it is an important and secure asset that can be tapped at any time, under virtually any circumstances. But there is another side to gold that is equally important, and that is its day-to-day performance as a stabilizing influence for investment portfolios.

Gold is an effective diversifier:

Diversification ideal helps protect the your portfolio against that fluctuations in the value of any one-asset class. Gold is an diversifier, because economic forces determine the price of gold are different from, and in many cases opposed to, the forces that influence most financial assets

Gold is the ideal gift:

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In many cultures, gold serves as a family treasure or a wealth transfer vehicle that is passed on from generation to generation. Gold bullion coins make excellent gifts for birthdays, graduations, weddings, holidays and other occasions. They are appreciated as much for their intrinsic value as for their mystical appeal and beauty. And because gold is available in a wide range of sizes and denominations, you dont need to be wealthy to give the gift of gold

Gold is highly liquid:

Gold can be readily bought or sold 24 hours a day, in large denominations and at narrow spreads. This cannot be said of most other investments, including stocks of the worlds largest corporations. Gold is also more liquid than many alternative assets such as venture capital, real estate, and timberland. Gold proved to be the most effective means of raising cash during the 1987 stock market crash, and again during the 1997/98 Asian debt crisis. So holding a portion of your portfolio in gold can be invaluable in moments when cash is essential, whether for margin calls or other needs.

Gold responds when you need it most:

Recent independent studies have revealed that traditional diversifiers often fall during times of market stress or instability. alternative On these all occasions, move most asset in the classes same (including traditional diversifiers such as bonds and assets) together direction. There is no cushioning effect of a diversified portfolio leaving investors disappointed. However, a small allocation of gold has been proven to significantly improve the consistency of portfolio performance, during both stable and unstable financial periods. Greater

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consistency of performance leads to a desirable outcome an investor whose expectations are met.

4.3. THE REASON WHY INVESTORS OWN GOLD

There are six primary reasons why investors own gold: They may never be more relevant than they are today.
1. 2. 3.

As a hedge against inflation. As a hedge against a declining dollar. As a safe haven in times of geopolitical and financial market instability.

4.

As a commodity, based on golds supply and demand fundamentals.

5. 6.

As a store of value. As a portfolio diversifier.

1. HEDGE AGAINST INFLATION

Gold is renowned as a hedge against inflation. The most consistent factor determining the price of gold has been inflation - as inflation goes up, the price of gold goes up along with it. Since the end of World War II, the five years in which U.S. inflation was at its highest were 1946, 1974, 1975, 1979, and 1980. During those five years, the average real return on stocks, as measured by the Dow, was -12.33%; the average real return on gold was 130.4%. Today, a number of factors are conspiring to create the perfect inflationary storm: extremely simulative monetary policy, a major tax cut, a long term decline in the dollar, a spike in oil prices, a huge trade deficit, and Americas status as the worlds biggest debtor nation. Almost across the board, commodity prices are up despite the short-term absence of a

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weakening dollar which is often viewed as the principal reason for stronger commodity prices.

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2. GOLD - HEDGE AGAINST A DECLINING DOLLAR Gold is bought and sold in U.S. dollars, so any decline in the value of the dollar causes the price of gold to rise. The U.S. dollar is the world's reserve currency - the primary medium for international transactions, the principal store of value for savings, the currency in which the worth of commodities and equities are calculated, and the currency primarily held as reserves by the world's central banks. However, now that it has been stripped of its gold backing, the dollar is nothing more than a fancy piece of paper.

3. GOLD AS A SAFE HAVEN Despite the fact that the United States is the worlds only remaining superpower, there are many problems festering around the world, any one of which could explode with little warning. Gold has often been called the "crisis commodity" because it tends to outperform other investments during periods of world tensions. The very same factors that cause other investments to suffer cause the price of gold to rise. A bad economy can sink poorly run banks. Bad banks can sink an entire economy. And, perhaps most importantly to the rest of the world, the integration of the global economy has made it possible for banking and economic failures to destabilize the world economy.

4. GOLD - SUPPLY AND DEMAND First, demand is outpacing supply across the board. Gold production is declining; copper production is declining; the production of lead and other metals is declining. It is very difficult to open new mines when the whole process takes about seven years on average, making it hard to address the supply issue quickly. Gold output in South Africa, the world's largest gold producer, fell to its lowest level since 1931 this past year as the rand's gains prompted Harmony Gold Mining Co. and rivals to close mines despite 16 year highs in the gold price.

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5. GOLD STORE OF VALUE Economist Stephen Harmston of Bannock Consulting had this to say in a 1998 report for the World Gold Council,

although the gold price may fluctuate, over the very long run gold has consistently reverted to its historic purchasing power parity against other commodities and intermediate products.
Historically, gold has proved to be an effective preserver of wealth. It has also proved to be a safe haven in times of economic and social instability. It sometimes takes a period of falling stock prices and market turmoil to focus the mind on the fact that it may be important to invest part of ones portfolio in an asset that will, at least, hold its value.

6. GOLD - PORTFOLIO DIVERSIFIER The most effective way to diversify your portfolio and protect the wealth created in the stock and financial markets is to invest in assets that are negatively correlated with those markets. Gold is the ideal diversifier for a stock portfolio, simply because it is among the most negatively correlated assets to stocks. Investment advisors recognize that diversification of investments can improve overall portfolio performance. The key to diversification is finding investments that are not closely correlated to one another. Gold and other tangible assets have historically had a very low correlation to stocks and bonds. Although the price of gold can be volatile in the shortterm, gold has maintained its value over the long-term, serving as a hedge against the erosion of the purchasing power of paper money

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GOLD CONTRACTS In India we have 4 types of gold contracts available in mcx. Gold-1000 grams Goldmini- 100 grams Goldhni-1000 grams Goldguinea-8 grams Gold -1000 grams It is a 1000 grams lot available in mcx and big investor can invest in this gold lots. Gold hni-1000 grams It is a1000 grams lot available in mcx so, here who has registered as a HNI in mcx he will take the gold HNI contracts at a time .number of contracts like it called as bulk Goldmini-100 grams the medium investor can invest in goldmine and the lot size is 100 grams. Goldguinea-8 grams It is especially for small investors the lot size is 8 grams deals. WORLD GOLD MARKETS London as the great clearing house New York as the home of futures trading Zurich as a physical tumtable Istanbul, Dubai, Singapore and Hong Kong as doorways to important consuming regions. Tokyo where TOCOM sets the mood of Japan Mumbai under Indias liberalized gold regime.

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24 HOURS ROUND THE CLOCK MARKET HONG KONG GOLD MARKET Zurich Gold Market London Gold Market New York Market

INDIA GOLD MARKET

Gold is valued in India as a savings and investment vehicle and is the second preferred investment after bank deposits India is the worlds largest consumer of gold to jewellery as investment. In July 1997 the RBI authorized the commercial banks to import gold for sale or loan to jewelers and exporters. At present, 13 banks are active in the import of gold. This reduced the disparity between international and domestic prices of gold from 57 percent during 1986 to 1991 to 8.5 percent in 2001. The gold hoarding tendency is well ingrained in Indian society. Domestic consumption is dictated by monsoon/harvest and marriage season. Indian jewelry off take is sensitive to price increase and even more so to volatility. In the cities gold is facing competition from the stock market and a wide range of consumer goods. Facilities for refining, assaying, making them into standard bars in India, as compared to the rest of the world, are insignificant, both qualitatively and quantitatively.

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THE PURITY OF GOLD ARTICLES IS GENERALLY DESCRIBED IN THREE WAYS.

Percent % (Parts of gold per 100) 100% 91.60% 75.00% 58.50% 41.60% Fineness (Parts of gold per 1000) 999 Fine 916 Fine 750 Fine 583 Fine 416 Fine Karats (parts of gold per 24) 24 Karats 22 Karats 18 Karats 14 Karats 10 Karats

FINE GOLD CONTENT The minimum fineness is 995 parts per 1000 fine gold and gold said to be 100 fine is marked down to 999.9 fine. The following fine gold contents of other bar weights are accepted by the London Bullion Market Association (LBMA). These bars are available at the spot Loco-London price plus a premium which varies dependent on prevailing market conditions in different locations. FUNDAMENTAL ANALYSIS : At the most basic level, by looking at the balance sheet, cash flow statement and income statement, a fundamental analyst tries to determine a companys value. In financial terms, an analyst attempts to measure a companys intrinsic value. In this approach, investment decisions are fairly easy to make if the price of a stock trades below its intrinsic value, its a good investment. Although this is an oversimplification (fundamental analysis goes beyond just the financial statements) for the purpose of this tutorial, this simple tenet holds true. TECHNICAL ANALYSIS :Technical traders, on the other hand, believe there is no reason to analyze a companys fundamental because these are all accounted for in the stocks price. Technicians believe that all the information they need about a stock can be found in its chart. While a fundamental analyst starts with the financial statements.

42

TYPES OF MOVING AVERAGES

There are a number of different types of moving averages that vary in the way they are calculate, but how each average is interpreted remains the same. The calculations only differ in regards to the weighting that they place on the price data, shifting from equal weighting of each price point to more weight being placed on recent data .The three most common types of moving averages are SIMPLE MOVING AVERAGE (SMA) This is the most common method used to calculate the moving average of price. It simply takes the sum of all of the past closing prices over the time period and divides the result by the number of price used in the calculation. For example, in a 10-day moving average, the last 10 closing are added together and then divided by 10 . LINEAR WEIGHTED AVERAGE Taking the sum of all the closing prices over a certain time period and multiplying them by the position of the data point and then dividing by the sum of the number of periods calculate the linear weighted moving average. For example ,in a five day linear weighted average ,five multiplies todays closing price ,yesterdays by four and so on until the first day in the period range is reached . EXPONENTIAL MOVING AVERAGE (EMA) : This moving average

calculation uses a smoothing factor to place a higher weight on recent data point and is regarded as much more efficient than the linear weighted average. Having an understanding of the calculation is not generally required for most trades because most charting packages do the calculation for you. The most important thing to remember about the exponential moving average is that it is more responsive to new information relative to the simple moving average. This responsiveness is one of the key factors of why this is the moving average of choice among many technical traders.

43

For each months contract, descriptive statistics is calculated, this descriptive statistics shows the Mean, Median, Standard Deviation (S.D), and Skewness .

Standard Deviation(volatility):
A statistical term that provides a good indication of

volatility. It measures how widely values (closing prices for instance) are dispersed from the average. The larger the difference between the closing prices and the average prices, the higher the standard deviation will be and the higher the volatility. The closer the closing prices are to the average price, the lower the standard deviation and the lower the volatility.

Skewness:
Skewness is a measure of symmetry. A data set, or distribution, is symmetric if it has a similar shape to the left and right of a centre point. The skewness of a normal distribution is zero. Negative values for the skewness indicate that observations are skewed leftwards, or that the left tail is heavier than the right tail. Positive skewness, on the other hand, indicates more upward spikes (episodes of rising prices) than negative ones.

THE POSSIBLE EVENTS THAT COULD DRIVE DOWN THE GOLD PRICE SEEM HIGHLY UNLIKELY.

India could slow its consumption The U.S stock market could boom, taking the attention away from gold Peace could break out in the world There could be a huge gold discovery Oil prices could collapse The dollar could rise

44

CHAPTER - IV

DATA ANALYSIS &INTERPRETATIONS

45

Gold-1000 grams The below table shows 3 days moving averages.

3 DAYS MOVING AVERAGE

Date

Close(Rs)

1-Jan-10

16747

2-Jan-10

16794

4-Jan-10

16889

16810

5-Jan-10

16897

16860

6-Jan-10

16923

16903

7-Jan-10

16888

16902.66667

8-Jan-10

16906

16905.66667

9-Jan-10

16957

16917

11-Jan-10

17092

16985

12-Jan-10

16929

16992.66667

13-Jan-10

16858

16959.66667

14-Jan-10

16957

16914.66667

15-Jan-10

16899

16904.66667

16-Jan-10

16912

16922.66667

18-Jan-10

16892

16901

19-Jan-10

16994

16932.66667

20-Jan-10

16756

16880.66667

21-Jan-10

16598

16782.66667

22-Jan-10

16519

16624.33333

23-Jan-10

16551

16556

25-Jan-10

16518

16529.33333

27-Jan-10

16503

16524

28-Jan-10

16353

16458

29-Jan-10

16317

16391

30-Jan-10

16317

16329

1-Feb-10

16620

16418

46

2-Feb-10

16754

16563.66667

3-Feb-10

16647

16673.66667

4-Feb-10

16152

16517.66667

5-Feb-10

16106

16301.66667

6-Feb-10

16286

16181.33333

8-Feb-10

16276

16222.66667

9-Feb-10

16319

16293.66667

10-Feb-10

16277

16290.66667

11-Feb-10

16474

16356.66667

12-Feb-10

16452

16401

13-Feb-10

16503

16476.33333

15-Feb-10

16605

16520

16-Feb-10

16731

16613

17-Feb-10

16756

16697.33333

18-Feb-10

16775

16754

19-Feb-10

16857

16796

20-Feb-10

16816

16816

22-Feb-10

16692

16788.33333

23-Feb-10

16591

16699.66667

24-Feb-10

16488

16590.33333

25-Feb-10

16694

16591

26-Feb-10

16772

16651.33333

27-Feb-10

16789

16751.66667

1-Mar-10

16796

16785.66667

2-Mar-10

17020

16868.33333

3-Mar-10

17028

16948

4-Mar-10

16956

17001.33333

5-Mar-10

16901

16961.66667

47

6-Mar-10

16907

16921.33333

8-Mar-10

16739

16849

9-Mar-10

16727

16791

10-Mar-10

16484

16650

11-Mar-10

16526

16579

12-Mar-10

16447

16485.66667

13-Mar-10

16452

16475

15-Mar-10

16538

16479

16-Mar-10

16718

16569.33333

17-Mar-10

16687

16647.66667

18-Mar-10

16768

16724.33333

19-Mar-10

16509

16654.66667

20-Mar-10

16506

16594.33333

22-Mar-10

16416

16477

23-Mar-10

16445

16455.66667

24-Mar-10

16295

16385.33333

25-Mar-10

16261

16333.66667

26-Mar-10

16349

16301.66667

27-Mar-10

16390

16333.33333

29-Mar-10

16319

16352.66667

30-Mar-10

16291

16333.33333

31-Mar-10

16295

16301.66667

1-Apr-10

16391

16325.66667

3-Apr-10

16424

16370

5-Apr-10

16377

16397.33333

GOLD 3 DAYS MOVING AVERAGE

48

The below graph shows daily prices like closing prices of the gold in the form of the technical tool indicator simple moving averages.

GOLD 3 DAYS MOVING AVG

40000 35000 30000 VALUES 25000 20000 15000 10000 5000 0 1/1/2010 1/15/2010 1/29/2010 2/12/2010 2/26/2010 3/12/2010 3/26/2010 3 DAYS MOVING AVERAGE Close(Rs)

MONTHS

INTERPRETATION As above data we are taken GOLD Price moving from January 1st to April 5th , on 1st January it is closed on 16747 in between the period on Jan 11th it is closed to 17092 , latterly on 29th Jan it came down to 16317, on 2nd Feb. it is increased to 16754 , on 5th Feb. again it is come down to 16106 , end of the contract on 5 th April it is closed to 16377. If you see total data the gold is highly fluctuated because the gold leads the economy.

49

GOLDGUINEA 8 GRAMS
The below table shows 3 days moving averages.

Date

Close(Rs)

3 days moving average

1-Feb-10

13183

2-Feb-10

13324

3-Feb-10

13258

13255

4-Feb-10

12896

13159.33333

5-Feb-10

12846

13000

6-Feb-10

12998

12913.33333

8-Feb-10

12976

12940

9-Feb-10

12991

12988.33333

10-Feb-10

12966

12977.66667

11-Feb-10

13081

13012.66667

12-Feb-10

13079

13042

13-Feb-10

13118

13092.66667

15-Feb-10

13146

13114.33333

16-Feb-10

13298

13187.33333

17-Feb-10

13298

13247.33333

18-Feb-10

13296

13297.33333

19-Feb-10

13364

13319.33333

20-Feb-10

13354

13338

22-Feb-10

13286

13334.66667

23-Feb-10

13210

13283.33333

24-Feb-10

13111

13202.33333

25-Feb-10

13224

13181.66667

26-Feb-10

13288

13207.66667

27-Feb-10

13294

13268.66667

1-Mar-10

13299

13293.66667

50

2-Mar-10

13436

13343

3-Mar-10

13439

13391.33333

4-Mar-10

13404

13426.33333

5-Mar-10

13377

13406.66667

6-Mar-10

13383

13388

8-Mar-10

13268

13342.66667

9-Mar-10

13251

13300.66667

10-Mar-10

13128

13215.66667

11-Mar-10

13146

13175

12-Mar-10

13097

13123.66667

13-Mar-10

13091

13111.33333

15-Mar-10

13131

13106.33333

16-Mar-10

13230

13150.66667

17-Mar-10

13223

13194.66667

18-Mar-10

13260

13237.66667

19-Mar-10

13125

13202.66667

20-Mar-10

13110

13165

22-Mar-10

13042

13092.33333

23-Mar-10

13056

13069.33333

24-Mar-10

12956

13018

25-Mar-10

12924

12978.66667

26-Mar-10

12975

12951.66667

27-Mar-10

12986

12961.66667

29-Mar-10

12951

12970.66667

30-Mar-10

12931

12956

31-Mar-10

12952

12944.66667

1-Apr-10

13005

12962.66667

3-Apr-10

13019

12992

51

5-Apr-10

12992

13005.33333

GOLD GUINEA 3 DAYS MOVING AVERAGE

The below graph shows daily prices like closing prices of the gold guinea in the form of the technical tool indicator simple moving averages.

GOLD GUINEA 8 grams

30000 25000 20000 15000 10000 5000 0
2/ 1/ 20 10 2/ 8/ 20 10 2/ 15 /2 01 0 2/ 22 /2 01 0 3/ 1/ 20 10 3/ 8/ 20 10 3/ 15 /2 01 3/ 0 22 /2 01 0 3/ 29 /2 01 0 4/ 5/ 20 10

VALUES

3 days moving average Close(Rs)

MONTHS

INTERPRETATION

As above data we are taken GOLD GUINEA Price moving from February 1st to April 5th, on 1st February it is closed on 13183 in between the period on Feb. 19th it is closed to 13364 , latterly on 26th Feb. it came down to 13288, on 3rd march it is increased to 13439 , on 30th march again it is come down to 12931 , end of the contract on 5th April it is closed to 12992. If you see total data the gold is highly fluctuated because the gold leads the economy.

52

GOLDMINI-100 GRAMS
The below table shows 3 days moving averages of goldmini.

Date

Close(Rs)

3 DAYS MOVING AVERAGE

6-Jan-10

16942

7-Jan-10

16914

8-Jan-10

16912

16922.66667

9-Jan-10

16980

16935.33333

11-Jan-10

17103

16998.33333

12-Jan-10

16971

17018

13-Jan-10

16888

16987.33333

14-Jan-10

16973

16944

15-Jan-10

16930

16930.33333

16-Jan-10

16943

16948.66667

18-Jan-10

16927

16933.33333

19-Jan-10

17024

16964.66667

20-Jan-10

16801

16917.33333

21-Jan-10

16626

16817

22-Jan-10

16555

16660.66667

23-Jan-10

16571

16584

25-Jan-10

16548

16558

27-Jan-10

16526

16548.33333

28-Jan-10

16372

16482

29-Jan-10

16329

16409

30-Jan-10

16343

16348

1-Feb-10

16647

16439.66667

2-Feb-10

16766

16585.33333

3-Feb-10

16659

16690.66667

53

4-Feb-10

16165

16530

5-Feb-10

16106

16310

6-Feb-10

16294

16188.33333

8-Feb-10

16279

16226.33333

9-Feb-10

16328

16300.33333

10-Feb-10

16287

16298

11-Feb-10

16471

16362

12-Feb-10

16450

16402.66667

13-Feb-10

16500

16473.66667

15-Feb-10

16598

16516

16-Feb-10

16732

16610

17-Feb-10

16757

16695.66667

18-Feb-10

16779

16756

19-Feb-10

16860

16798.66667

20-Feb-10

16822

16820.33333

22-Feb-10

16703

16795

23-Feb-10

16599

16708

24-Feb-10

16494

16598.66667

25-Feb-10

16696

16596.33333

26-Feb-10

16773

16654.33333

27-Feb-10

16790

16753

1-Mar-10

16799

16787.33333

2-Mar-10

17017

16868.66667

3-Mar-10

17023

16946.33333

4-Mar-10

16955

16998.33333

5-Mar-10

16905

16961

6-Mar-10

16913

16924.33333

8-Mar-10

16748

16855.33333

54

9-Mar-10

16736

16799

10-Mar-10

16499

16661

11-Mar-10

16540

16591.66667

12-Mar-10

16458

16499

13-Mar-10

16463

16487

15-Mar-10

16541

16487.33333

16-Mar-10

16710

16571.33333

17-Mar-10

16680

16643.66667

18-Mar-10

16750

16713.33333

19-Mar-10

16502

16644

20-Mar-10

16498

16583.33333

22-Mar-10

16415

16471.66667

23-Mar-10

16439

16450.66667

24-Mar-10

16295

16383

25-Mar-10

16254

16329.33333

26-Mar-10

16324

16291

27-Mar-10

16356

16311.33333

29-Mar-10

16261

16313.66667

30-Mar-10

16242

16286.33333

31-Mar-10

16232

16245

1-Apr-10

16377

16283.66667

3-Apr-10

16427

16345.33333

5-Apr-10

16377

16393.66667

GOLDMINI 3 DAYS MOVING AVERAGE

55

The below graph shows daily prices like closing prices of the goldmine in the form of the technical tool indicator simple moving averages.

GOLD MINI 100 grams

40000 35000 30000 25000 20000 15000 10000 5000 0
1/ 6/ 20 10 1/ 20 /2 01 0 2/ 3/ 20 10 2/ 17 /2 01 0 3/ 3/ 20 10 3/ 17 /2 01 0 3/ 31 /2 01 0

VALUES

3 DAYS MONING AVERAGE Close(Rs)

MONTHS

INTERPRETATION As above data we are taken GOLD MINI Price moving from January 6th to April 5th, on 6th January it is closed on 16942, in between the period on 11th Jan it is closed to 17103 , latterly on 5th Feb. it came down to 16106, on 3rd march it is increased to 17023 , on 25th march again it is come down to 16254 , end of the contract on 5th April it is closed to 16377. If you see total data the gold is highly fluctuated because the gold leads the economy.

56

GOLD HNI (1000 ) 3 DAYS MOVING AVERAGES The below table shows 3 days moving averages of gold hni.

Date

Close(Rs)

3 DAYS MOVING AVERAGE

1-Jan-10

16835

2-Jan-10

16835

4-Jan-10

16667

16779

5-Jan-10

16667

16723

6-Jan-10

16667

16667

7-Jan-10

16834

16722.66667

8-Jan-10

16834

16778.33333

9-Jan-10

16834

16834

11-Jan-10

16834

16834

12-Jan-10

16834

16834

13-Jan-10

16834

16834

14-Jan-10

16834

16834

15-Jan-10

16834

16834

16-Jan-10

16834

16834

18-Jan-10

16834

16834

19-Jan-10

16834

16834

20-Jan-10

16834

16834

21-Jan-10

16666

16778

22-Jan-10

16499

16666.33333

23-Jan-10

16499

16554.66667

25-Jan-10

16499

16499

27-Jan-10

16499

16499

28-Jan-10

16499

16499

29-Jan-10

16334

16444

57

30-Jan-10

16334

16389

1-Feb-10

16334

16334

2-Feb-10

16334

16334

3-Feb-10

16497

16388.33333

4-Feb-10

16497

16442.66667

5-Feb-10

16332

16442

6-Feb-10

16332

16387

8-Feb-10

16332

16332

9-Feb-10

16332

16332

10-Feb-10

16332

16332

11-Feb-10

16332

16332

12-Feb-10

16332

16332

13-Feb-10

16332

16332

15-Feb-10

16332

16332

16-Feb-10

16332

16332

17-Feb-10

16495

16386.33333

18-Feb-10

16495

16440.66667

19-Feb-10

16495

16495

20-Feb-10

16495

16495

22-Feb-10

16495

16495

23-Feb-10

16495

16495

24-Feb-10

16495

16495

25-Feb-10

16495

16495

26-Feb-10

16660

16550

27-Feb-10

16660

16605

1-Mar-10

16660

16660

2-Mar-10

16660

16660

3-Mar-10

16827

16715.66667

4-Mar-10

16827

16771.33333

58

5-Mar-10

16827

16827

6-Mar-10

16827

16827

8-Mar-10

16827

16827

9-Mar-10

16827

16827

10-Mar-10

16827

16827

11-Mar-10

16659

16771

12-Mar-10

16492

16659.33333

13-Mar-10

16492

16547.66667

15-Mar-10

16327

16437

16-Mar-10

16327

16382

17-Mar-10

16490

16381.33333

18-Mar-10

16490

16435.66667

19-Mar-10

16490

16490

20-Mar-10

16490

16490

22-Mar-10

16490

16490

23-Mar-10

16490

16490

24-Mar-10

16325

16435

25-Mar-10

16325

16380

26-Mar-10

16325

16325

27-Mar-10

16325

16325

29-Mar-10

16162

16270.66667

30-Mar-10

16162

16216.33333

31-Mar-10

16000

16108

1-Apr-10

16000

16054

3-Apr-10

16000

16000

5-Apr-10

16160

16053.33333

GOLDHNI 3 DAYS MOVING AVERAGES

59

The below graph shows daily prices like closing prices of the gold hni in the form of the technical tool indicator simple moving averages.

GOLD HNI 1000 grams

40000 35000 30000 25000 20000 15000 10000 5000 0 1/1/2010 1/15/2010 1/29/2010 2/12/2010 2/26/2010 3/12/2010 3/26/2010

VALUES

3 DAYS MOVING AVERAGE Close(Rs)

MONTHS

INTERPRETATION

As above data we are taken GOLD HNI Price moving from January 1st to April 5th , on 1st January it is closed on 16835 in between the period on Jan 26th it is closed to 16666 , latterly on 6 Feb. it came down to 16332, on 10 march it is increased to 16827 , on 27th march again it is come down to 16325 , end of the contract on 5th April it is closed to 16160. If you see total data the gold is highly fluctuated because the gold leads the economy.

ANALYSIS AND INTERPRITATIONS OF THE GRAPH

60

The above graphs shows daily prices like closing prices of the precious metal commodity (gold) in the form of the technical tour indicator simple moving avarage

The moving avarage is the graph shows the moving trends of the index of gold futures for the six months period data are tekan in to consideration of defferant gold contracts.

Moving avarage is used in-order to analyse the past trends of the particular commodity (gold) and helping interpretations for the analyst and investors whether to buy, hold or sell particular commodity in the near future.

In this particular graphs we have taken three days moving avarages on daily basis for period of six months. Three days moving avarage is generally consider for interpreting the short term trends are intraday trading on a daily terms.

In commodity market most of the investors are trading in intraday points, they generally make both buy and sell signals in a day. The buyers and sellers mainly follow three days moving avarages.

Here volumes are not taken in to concideration for analysis porpos. Even they effect the high-low in the market. This analysis is based only on each day trading closing prices.

61

ANALYSIS FOR GOLD

In this starting contract the closing prices of three days moving averages which indicate a step increasing in the commodity future and it happens in the january as there was no fluctuation in commodity market and from the january onwards there were high incresing of gold prices. The moving average shows a incresing trend in the commodity market which shows a very bullish trend,because of high incresing trend and also the closing prices of the contract period.

CONCLUSSION OF GOLD ANALYSIS

In the lost six months the market was showing more of buying signals than sellings.this shows a good trend for gold in near future for long term investors and prices might rise and mostly investor are earning profit if analyse the market proporly.

62

Chapter - V

FINDINGS
63

REASONS FOR RISE IN GOLD PRICE

The gold price closed at $825.50. on January 21, 1980, but today, it takes $2,200.00 to buy what $825.50 bought in January 1980. The reason for the rise in the gold price are given below; The Dollar Slide . Flight to Quality . Oil Versus Gold Ratio

Central Bank Sales and Purchases . Investment Demand . Commodities Super-Cycle .

64

Chapter - VI

SUGGESTIONS

65

 , the volatility of the Gold future price has been derived and it shows the price is highly volatile Investing in the Gold is more profitable and less risky since, Gold price is expected to increase further in the long, gold prices float freely in accordance with supply and demand, responding quickly to political and economic events. hese findings are of considerable importance for gold investors and traders.

66

BIBLIOGRAPHY
BOOKS & MAGAZINES COMMODITY MARKET AN INTRODUCTION BY JANARDHANAN BUSINESS WORLD MAGAZINE COMMODITY MARKET MAGAZINE CORPORATE INDIA MAGAZINE HINDU NEWS PAPER ECONOMICS TIME

WEBSITES
www.gold.org www.gfms.co.uk www.bullionindia.com www.ncdex.com www.mcxindia.com www.nmce.com www.fmc.gov.inv www.sebi.gov.in www.investopedia.com www.wikipedia.com www.netdaniya.com

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