Why Invest In Gold
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The document discusses gold prices over the past 10 years and factors influencing gold prices. It shows that $10,000 invested in gold in 2001 would now be worth $60,198, compared to $23,054 if invested in bonds and $54,315 if invested in stocks. Gold prices rose due to currency devaluation, demand, and limited supply. Prices have fallen recently due to central bank selling and dollar appreciation. However, prices are expected to rise further in the long run due to continued economic uncertainty, demand for gold jewelry, and quantitative easing by central banks. Experts forecast gold reaching $2000-3000 per ounce by 2012-2013.
Why Invest In Gold
- 1. Goldnomics Sanjeev Kumar G CFP CM Head of Financial Planning Sanjeev.kumar@jrg.co.in
- 2. 10 year I-Bex Chart 7000 5730.73 6000 5000 4000 3000 2000 2485.82 1000 0 1-Oct-01 1-Oct-02 1-Oct-03 29-Sep-04 29-Sep-05 29-Sep-06 29-Sep-07 28-Sep-08 28-Sep-09 28-Sep-10 28-Sep-11 Rs.10000 if invested in bonds in 2001 would have become Rs.23054 now
- 3. 910.10 0 2000 3000 4000 5000 6000 1000 7000 1-Oct-01 1-Apr-02 1-Oct-02 Rs.54315 now 1-Apr-03 1-Oct-03 1-Apr-04 1-Oct-04 1-Apr-05 1-Oct-05 1-Apr-06 1-Oct-06 1-Apr-07 1-Oct-07 1-Apr-08 1-Oct-08 1-Apr-09 1-Oct-09 1-Apr-10 1-Oct-10 10 year S&P CNX Nifty Chart Rs.10000 if invested in Shares in 2001 would have become 1-Apr-11 1-Oct-11 4943.25
- 4. 10 year gold price chart in INR/gram 2614.8 434.4 Rs.10000 if invested in Gold in 2001 would have become Rs.60198 now
- 5. WHY GOLD PRICE WENT UP?
- 7. Demand
- 8. Supply
- 9. WHY IS IT FALLING?
- 10. Why is it falling? ? Selling by Central banks to generate cash ? Appreciation of dollar against Euro ? Unwinding of across the board commodity positions by speculators
- 11. WHERE IS IT HEADED FOR?
- 13. Demand for Gold Jewelry
- 14. Economic Situation ? Risein investment demand from retailers and as well as from official sector due to ? Euro zone crisis- Fear of default by Greece and later on by Portugal and Ireland ? Fear of a double dip recession in the US and Europe ? Slowing growth in China , fear of real estate market crisis ? Low return from stocks ? Safe haven investment due to uncertainties ? US Fed and ECB can¨t resist fromQE for long time ? Devaluation of INR against US$ protects the downside
- 15. Experts View ? 140 Analysts Believe Gold is Going UP to at Least $3,000 from current level of $1622.64 by 2012-13 -Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com ? JRG View ? Gold prices may reach $2000 and even higher by next 2-3 years
- 16. THANK YOU Sanjeev Kumar G CFP CM Head of Financial Planning Sanjeev.kumar@jrg.co.in