Gold Prices in India
“REPORT ON DO SOARING PRICE AND MOUNTING DEMAND IN INDIAN GOLD MARKET SPEAK OF A PARADOX? “
A STUDY ON “MISMATCH BETWEEN DEMANDS
FOR AND SUPPLY OF GOLD’’ CASE STUDY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTERS OF BUSINESS MANAGEMENT COURSE OF ALLIANCE UNIVERSITY
ALLIANCE BUSINESS SCHOOL
INDEX
Page no. Content
1 Cover page
2 Index
3 Problem statement and Executive Summary
4 Issue analysis
5 Statistical data and interpretation
8 Conclusion
PROBLEM STATEMENT
Mismatch between demand for and supply of gold.
EXECUTIVE SUMMARY
In India, Hutti gold mine company in Karnataka is the only company contributing 3 tonnes of gold to Indian market however another source of gold is from the recycled jewellery or scrap jewellery. In 2006 105 tonnes of gold was recycled in a year. To meet the bulk demand from the Indian market India imports approximately 700 tonnes of gold per year. In the year 2008 during the diwali time the demand for gold increased leading to the fall in the gold price from $900 to $712 this was because of the reduction in demand that happened in the year 2007 when the gold price went up. The high price of gold has reduced the demand for it especially in the jewellery sector. However in 2005 when the Gold price went up the demand for gold also increased equally. The real estate and stock market was considered a better option than investing in gold. This made the analysts comment that the demand curve for gold in India is inverted. However the Indians believe that gold is the best way to preserve and improve their wealth. During recession investors felt that gold was the best mean to secure and protect their wealth. But the demand for gold went down because of the raise in the price of gold.Indians gold demand is met through imports. However the import of gold has set to have fallen. There is zero percent imports during the year 2009. There is a positive as
A STUDY ON “MISMATCH BETWEEN DEMANDS
FOR AND SUPPLY OF GOLD’’ CASE STUDY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTERS OF BUSINESS MANAGEMENT COURSE OF ALLIANCE UNIVERSITY
ALLIANCE BUSINESS SCHOOL
INDEX
Page no. Content
1 Cover page
2 Index
3 Problem statement and Executive Summary
4 Issue analysis
5 Statistical data and interpretation
8 Conclusion
PROBLEM STATEMENT
Mismatch between demand for and supply of gold.
EXECUTIVE SUMMARY
In India, Hutti gold mine company in Karnataka is the only company contributing 3 tonnes of gold to Indian market however another source of gold is from the recycled jewellery or scrap jewellery. In 2006 105 tonnes of gold was recycled in a year. To meet the bulk demand from the Indian market India imports approximately 700 tonnes of gold per year. In the year 2008 during the diwali time the demand for gold increased leading to the fall in the gold price from $900 to $712 this was because of the reduction in demand that happened in the year 2007 when the gold price went up. The high price of gold has reduced the demand for it especially in the jewellery sector. However in 2005 when the Gold price went up the demand for gold also increased equally. The real estate and stock market was considered a better option than investing in gold. This made the analysts comment that the demand curve for gold in India is inverted. However the Indians believe that gold is the best way to preserve and improve their wealth. During recession investors felt that gold was the best mean to secure and protect their wealth. But the demand for gold went down because of the raise in the price of gold.Indians gold demand is met through imports. However the import of gold has set to have fallen. There is zero percent imports during the year 2009. There is a positive as