Events/Opportunities in Gold. Sameer Patil Vice President Product Knowledge Management

Transcription

1 Events/Opportunities in Gold Sameer Patil Vice President Product Knowledge Management

2 MCX Achievements World s Largest Silver Exchange World s Third Largest Bullion Exchange Live Trading Since November 10, 2003 Average Daily Turnover Rs Cr (Single Sided) Highest Single Day Turnover - Rs Cr (Single Sided) Gold Highest Turnover: Rs.9094 Cr Silver Highest Turnover: Rs.7455 Cr

3 MCX Shareholders

4 Cross-border Strategic Alliances

5 Domestic Alliances Solvent Extractors Association of India (SEA) Bombay Bullion Association (BBA) Bombay Metal Exchange (BME) Pulses Importers Association (PIA) United Planters Association of Southern India (UPASI)

6 In 1997 the mine supply and official sector sales grew by 238 tonnes while forward sales added 299 tonnes more accelerated supply than in An associated sizeable increase in liquidity helps to contribute to the downward course of the price over the year. Bar hoarding more than doubles over the course of the year to reach 337 tonnes, the highest since the end of the 1980s. The price drops sharply in July, falling from $332 to $318 after the Australian Reserve Bank announces it has sold two-thirds of its gold reserves. Gold sells off in October 1997 after a Swiss government advisory group recommends the National Bank sell 1,400 tonnes of gold, dropping from close to $330 towards the $310 level. The price falls to a decade low of $283 on 12 December.

7 Russia experiences a serious currency crisis, and the Dow registers a 510 point fall on the 31 st although gold takes little heed and prices remain stable in the $ band. The average price slips to $ from $331 the previous year and the lowest since 1978.

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9 Ashanti Gold Mine Effect

10 September 11 Attack(2001) GOLD CONTINUOUS 100 TROY OZ [COMEX] ( , , , , ), USDEUR - EURODOLLAR ( , , , , ) March April May June July August September October November December 2002 February March

11 2002 Strong investor buying, notably from European and North American investors concerned over corporate governance, as well as Japanese investors responding to mounting concerns over the stability of the banking sector, push the annual gold price up to $309.70, the highest since 1997 while the year-on-year rise is the greatest since Terror bombing attack in Bali kills 202. North Korea admits to a nuclear weapons programme; the US suspends shipments to the country and North Korea threatens to accelerate its nuclear programme. The year ends with a spot at $347.20, a gain of $59 or 25% over the start of 2002.

12 2002

13 2003 The CBGA signatories announce that the agreement will be renewed (with modification, which turns outs to be raising of the annual sales limit to 500 tonnes) will be renewed in September. The UK withdraws on the basis that it has no current intention to sell any more gold. US leads the invasion of Iraq Launch of the Australian gold Exchange Traded Fund.

14 2003

15 2003 The gold prices remains on a firm upward trajectory in 2003, supported by a strong increase in investment demand driven by growing concerns over US external imbalances and the related implications for the dollar, as well as rising geopolitical risks. Fall of Baghdad.

16 2003

17 2004

18 London Bombings

19 2005 Hurricane Katrina triggers a marked rise in oil prices, boosting inflation expectations and demand for gold as an inflation hedge. The desire to hedge against inflation and dollar devaluation continues to support gold demand, while the developing ETF market helps to broaden the investor base. The gold prices reaches $ in December, the highest since March 1981.

20 2005

21 2006 The price rallies almost continuously in the first half of the year, reaching a 26-year high on 12 th May, supported by a weaker dollar and rising inflation, as well as political factors, notably continued tensions in the Middle East. The investor base continues to broaden thanks, in part, to the development of the ETF market, and with pension funds taking an increasing interest in gold as portfolio diversification tool.

22 2006

23 US Sub-prime effect(2007) The precious metal markets are sliding lower Thursday as investors worst fears over the sub prime mortgage market are confirmed- its spreading. The precious metal with gold slipping 2% to $662 a troy ounce and silver down 3.5% at $12.72/oz.

24 US Sub-prime effect

25 2007

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