1. Gold prices recently gained $80 within hours in the international market and prices of 10 grams of gold rose by 180 rupees in Pakistan. 2. There is debate around what is causing gold price fluctuations, with some blaming jewelers for price hikes and others saying it is out of the government's control. 3. Gold price movement results from complex global dynamics of supply and demand for the precious metal, along with factors like currency exchange rates and economic conditions.

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GOLD TRADE
by
Fahim Akhtar
fahimakhtar07@hotmail.com

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Science - Element with symbol Au
& atomic number 79
Geology - A substance from mines
great depression -FIAT currency
Confidence and strength

3. Contents
• Gold – precious yellow metal
• Supply & Demand
• New dimension of investment / trade
in gold
• Investment pyramid

4. 4
BREAKING NEWS
Gold prices gains US $ 80 within few hours in international market

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10 gram Gold prices up by Rupees 180
All Karachi Jewelers Association
21 July 2013

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• Grand mom hold reservations
against jewelers holding them
responsible for price hike
• Mr Criticism feels that this is the
failure of government control the
price

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They are not right in
their views in
totality – Mostly
these are self
conceived and pre
focused ideas
There is a solid dynamics and
mechanism for gold price
movement on either side -- up or
down

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Gold is no more a metal only used for jewelry of female gender

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Gold is a business now having many dimensions

11. Supply & Demand

12. We get gold after intricate mining process
Process is complex
Need state of the art equipment
Very expansive

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China
Australia
USA
South Africa
Peru
Indonesia
Some gold ore deposits

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Gold Reserves in tones
• United States 8,133.5
• Germany 3,391.3
• International Monetary Fund 2,814.0
• Italy 2,451.8
• France 2,435.4
• China 1,054.1
• Switzerland 1,040.1
• Russia 996.4
• Japan 765.2
• Netherlands 612.5
• India 557.7
• European Central Bank 502.1
• Turkey 445.3
• Taiwan 423.6
• Portugal 382.5

15. Jewelry forms two-thirds of annual gold demand. India is the
largest consumer in volume terms, accounting for 29% of
demand in 2012, followed by China and the USA
Central banks and the International Monetary Fund play an
important role in the gold price. At the end of 2008 central banks
and official organizations held 23 percent of all above-ground
gold

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Gold price movement is a dwell between demand and supply
of precious metal rarely held along with a few other factors

17.  Speculators, takes into account
economy , financial reports and events
 There are many future contracts trading like
gold September gold October
 Short selling in futures stabilize the prices

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Gold prices take effect of
• Dollar falling:
• Low saving rate:
• Inflation:
• Economic crisis:
• A fall in gold supply: technical rebound
• US unemployment figures:
• Political concerns, crisis:
• Festivals:

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GOLD DOLLAR RELATION

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PKR – US $ PARITY

23. Investment returns in gold
Bought one ounce gold in 2008
Gold price was - 709 US $
72 PKR = 1 US $
Total investment 72 X 709 = 51,000 PKR
Today worth of investment now is 1400 X 104 = 145,600 PKR
Gold takes advantage of rupee depreciation

26. Smart buying & selling of gold with no physical possession

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• Commodities exchange work worldwide
• NCEL is working in Pakistan renamed as PMEX
• There are more than 50 commodity houses facilitating
gold trade
• More than 5000 MBAs employed in this sector many of
them with good compensation package in Pakistan

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• Account in PMEX or international broker
• Variety of gold contracts available
• Futures also traded
• Future carry more risk
But than higher the risk, higher will be reward

30. Investment
• Conventional physical gold buying
• Online gold trade
• Future trade
• Gold certificates / funds
• Investment in mining

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Insurance
Investment / saving
speculation
Investment
Gold in
possession
Gold investment pyramid
Gold certificate
/ funds
Gold
mines
Gold futures /
options
Risk

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