Is Gold that Bold, Analysis of the Performance of Gold for the Past 34 Years as an Investment Vehicle and where it stands in comparsion to Equity, Fixed Income and other Alternative Investments.

2. Index
* Investing 5w's &1 H
* Equity
* Fixed Deposit
* Gold
* Real Estate
* Comparative Analysis in terms of return ( Eq/FD/Gold)
* Conclusion
Q&A

3. INVESTOR PSHYCOLOGY FOR TRADING
INSTRUMENTS

4. Investing!!! 5W's and 1H
"How"to invest?- “How”- We all know how to invest, as
we all have invested something for a better some
thing.The point is, if you really think about it, you do a
lot of investing, all the time. Maybe not in stocks but in
life itself.
“When”The old Wall Street saying that you have heard
forever: buy low, sell high. Bingo. That's exactly what
you would do for anything else. Buy something for a low
price, cheap, on discount, get your value from it, and
sell it at a profit.
“Who”- Every individual who intends to make money
should invest
“Why”- Investing is a way to grow money and for a
secure future

5. Equity:-
Equity is an investment avenue which is able to offer the highest
possible returns but is very risky as there are huge probabilities of
investors even losing some part of the invested capital too
Why??
a)They provide the highest potential returns
b)Stocks can give multiple returns on investment that no other
asset class can match
c) Alternative options galore
d)dividend stocks for long term and enjoy the dividends

6. Fixed Deposits:-
Fixed deposits are a high-interest-yielding Term deposit and offered
by banks in India. The most popular form of Term deposits is Fixed
Deposits, while other forms of term Deposits are Recurring Deposit
and Flexi Fixed Deposits (the later is actually a combination of
Demand deposit and Fixed deposit).
Why???
a) Safety
b) Regular Income
c) Saves Tax

7. Gold:-
There are a number of distinctive qualities that separate gold from the
rest of the c
commodities complex, such as its role in central banks reserve asset
management and
the outstanding physical and chemical properties that make it ideal for
use in
technological application.
Why???
a) long-term store of value
b)Gold has historically been an excellent hedge against inflation
c)Unlike paper currency, coins or other assets, gold has maintained its
value throughout the ages.

8. Real Estate investment trust
A security that sells like a stock on the major
exchanges and invests in real
estate directly, either through properties or
mortgages. REITs receive special tax considerations and typically
offer investors high yields, as well as a highly
liquid method of investing in real
estate.
Why???
a)It’s safe (as houses)
b)It’s easy to get started
c)It’s easier to research than stocks and
shares

9. FOR 1ST DECACDE
YEAR FD
RATE
FD VALUE SENS
EX
SENSEX
RETURN
S
SENSEX
VALUE
GOLD GOLD
RETURN
S
GOLD
VALUE
10000.00 129 10000 1159 10000
1980-81 7.50% 10750.00 173 34% 13411 1522 31% 13132
1981-82 8.00% 11610.00 218 26% 16899 1719 13% 14832
1982-83 8.00% 12538.80 212 -3% 16434 1723 0% 14866
1983-84 8.00% 13541.90 245 16% 18992 1858 8% 16031
1984-85 8.00% 14625.26 354 44% 27442 1984 7% 17118
1985-86 8.50% 15868.40 574 62% 44496 2125 7% 18335
1986-87 8.50% 17217.22 510 -11% 39535 2323 9% 20043
1987-88 9.00% 18766.77 398 -22% 30853 3082 33% 26592
1988-89 9.00% 20455.78 714 79% 55349 3175 3% 27394
1989-90 9.00% 22296.80 781 9% 60543 3229 2% 27860
IF SOME ONE HAS INVESTED 10,000 IN 1980 IN 3 DIFFRENT ALTERNATIVES
IN 1990
THE RETURNS ON FD ON AVERAGE OF 8.35% AMOUNT WILL BE 22300
THE RETURNS ON SENSEX ON AVERAGE OF 24% AMOUNT WILL BE 60500

10. FOR 2ND DECACDE
YEAR FD
RATE
FD
VALUE
SENS
EX
SENSEX
RETURN
S
SENSEX
VALUE
GOLD GOLD
RETUR
NS
GOLD
VALUE
10000.00 781 10000 3229 10000
1990-91 9.00% 10900.00 1168 50% 14955 3452 7% 10691
1991-92 12.00% 12208.00 4285 267% 54866 4298 25% 13311
1992-93 11.00% 13550.88 2281 -47% 29206 4104 -5% 12710
1993-94 10.00% 14905.97 3779 66% 48387 4532 10% 14035
1994-95 11.00% 16545.62 3261 -14% 41754 4667 3% 14453
1995-96 12.00% 18531.10 3367 3% 43111 4958 6% 15355
1996-97 11.00% 20569.52 3361 0% 43035 5071 2% 15705
1997-98 10.50% 22729.32 3893 16% 49846 4347 -14% 13462
1998-99 9.00% 24774.96 3740 -4% 47887 4268 -2% 13218
1999-2000 8.50% 26880.83 5001 34% 64033 4394 3% 13608
IF SOME ONE HAS INVESTED 10,000 IN 1990 IN 3 DIFFRENT ALTERNATIVES
IN 1990
THE RETURNS ON FD ON AVERAGE OF 10.40% AMOUNT WILL BE 22300
THE RETURNS ON SENSEX ON AVERAGE OF 37% AMOUNT WILL BE 64033
THE RETURNS ON GOLD ON AVERAGE OF 4% AMOUNT WILL BE13600

11. FOR 3R DECACDE
YEAR FD
RATE
FD
VALUE
SENSEX SENSE
X
RETUR
NS
SENSEX
VALUE
GOLD GOL
D
RETU
RNS
GOLD
VALUE
10000.00 5001 10000 4394 10000
2000-01 8.50% 10850.00 3604 -28% 7207 4474 2% 10182
2001-02 7.50% 11663.75 3469 -4% 6937 4579 2% 10421
2002-03 4.25% 12159.46 3049 -12% 6097 5332 16% 12135
2003-04 4.00% 12645.84 5591 83% 11180 5719 7% 13015
2004-05 5.25% 13309.74 6493 16% 12983 6145 7% 13985
2005-06 6.00% 14108.33 11280 74% 22555 6901 12% 15706
2006-07 6.60% 15039.48 13072 16% 26139 9240 34% 21029
2007-08 4.67% 15741.82 15644 20% 31282 9996 8% 22749
2008-09 8.06% 17010.61 9708 -38% 19412 12890 29% 29335
2009-10 3.81% 17658.72 17527 81% 35047 15766 22% 35881
IF SOME ONE HAS INVESTED 10,000 IN 2000 IN 3 DIFFRENT ALTERNATIVES
IN 2010
THE RETURNS ON FD ON AVERAGE OF 5.86% AMOUNT WILL BE 17650
THE RETURNS ON SENSEX ON AVERAGE OF 21% AMOUNT WILL BE 35047

12. 1981-1990 1991-2000 2001-2010 2011-2014
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
8.35%
10.40%
5.86%
8.88%
24.00%
37.00%
21.00%
7.00%
9.00%
4.00%
14.00%
17.00%
FD RATE
SENSX RETURNS
GOLD RETURNS

13. Going through the chart & overall calculations ,if equal investment of
10000 is considered in all the three alternatives of investment, the
return in the previous years was maximum in sensex, then in Gold and
was least in FD
As per the analysis, sensex can be ranked as top most investment
alternative, than Gold and lastly FD. Along with the above fact and
figures the major support goes with the sensex ( equities) as it is less
risk associated and due time dividends can also be minted.
Where as on comparing Gold & FD's although return wise Gold is
strong but at the same time highly volatile and risk is there. While
with the fixed deposits the risk associated is nill and the returns are
well assured.