A case for investing 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?

6. Currency Value Erosion

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