Gold Fluctuation & its Impact on Indian Economy

is Disastrous Presented By: Group 1

Contents • Overview of Gold

• Factors Affecting Gold Prices

• India & Gold

• Impact of Gold on Indian Financial System

• Sectorial uses of Gold and its Impact

Jewelry

Financial goal

Electronics

Medical

Awards & status symbol

Reasons For Gold Fluctuation

Instability

Inflation

Oil Prices

Contd….

Bond

Fluctuating Money

Hoarding & Disposing

India & Gold

India produces approx. only 4 tons & imported

800-900 tons gold.

Gold as a symbol of purity, prosperity and

good fortune

Over 13 per cent of household savings is in

physical assets like gold.

Gold % in Forex Reserve

Countries Gold as % of Total Reserves

USA 77 per cent

Germany 74 per cent

Italy 73 per cent

France 72 per cent

Netherlands 62 per cent

India 9 per cent

India reported a current account deficit equivalent

to 16.40 Billion USD in the second quarter of 2012.

Gold imports are estimated at 72 per cent of India’s

current account deficit.

Indian Policy Advisors Discourage Buying Gold …….?

widens c/a deficit

Reverse demand – supply

mechanism

Deprives

financial

markets of fundsAn unproductive

investment

IMPACT OF GOLD ON INDIAN FINANCIAL SYSTEM

Contd…

About 18000 tonnes of gold worth $800 billion is sitting idle in family vaults – an incurable drain on savings.

Gold related investments are outperforming and yielding around 15%. In case of sharp fall the entire economy will suffer.

o

Consumer never ending Desire

Immunity of Gold against environmental effects.

In circuits which are complicated , and the need of reliability are high ,GOLD is the perfect answer

Gold-plated contacts and connectors

The second large application for gold in electronics is for bonding wire

Getting Same performance from reduced gold coating thickness

Use of a number of alternative coatings such as palladium-nickel

protect them from radiation

Reflect and deflect the burning

heat of the sun

Used in Space Suits

Dependable conductor and connector

Reflective qualities

Used in the circuitry

Used as a Lubricant

These both the Sectors hold the key to future growth

With growing globalization both sectors play important role in Increasing India’s Status as super power

For medical uses

• Treatment of cancer

• Curing Lagophthalmos

• Superior performance and Aesthetic appeal.

Used In Dentistry

Glassmaking

• Speciality glass for climate controlled buildings.

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