gold fluctuation & impact on indian economy is
TRANSCRIPT
Contents • Overview of Gold
• Factors Affecting Gold Prices
• India & Gold
• Impact of Gold on Indian Financial System
• Sectorial uses of Gold and its Impact
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.
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.
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