Add a touch of gold to your portfolio.

Gold Exchange Traded Fund.

(an open ended Gold ETF)

By Chaitanya Patil MMS -II

Gold ETFs Adding to the demand

2000 1800 1600 1400 1200 Tonnes 1000 800 600 400

GlobalETFDemand(Tonnes)-Cumulative GoldPrice(US$/Oz) 880 650 560 330

3

1200
1100 1000 900 800 700 US$/Oz 600 500 400 300 200

200
0

210 50
2003

150
2004 2005 2006 2007 2008 2009 2010

The inflows into ETFs have thus far continued unabated, buoyed by rally in gold prices. Safe haven buying is supporting the price of Gold.
Source:Bloomberg,WorldGoldCouncil,Gold.org

Gold Market Dynamics Supply

Declining Mine Production
Real value of Gold will increase in the long term as production declines
2,700 2,600 2,500 2,400 2,300 Tonnes 2,200 2,100 2,000 9 93 94 92 9 9 95 9 9 9 9 9 0 0 0 0 0 0 0 0 08 10 96 97 98 99 00 01 02 03 04 05 06 07 08 09

Gold Mine Production(1992-2010) Price of Gold Gold Mine Production

900 800 700 600 500 400 300 200 US$/Oz

GoldMineproductionhasbeenonadeclinepeakproductionwasintheyear2001 over2,600tonnes
Source:U.SGeologicalSurvey,Bloomberg

Gold Market Dynamics

4000 3500 3000 2500 2000 1500 Tonnes 1000 500 0

Demand vs. Supply (Gap widening)

Demand Supply Deficit

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: WorldGoldCouncil,Gold.org

WHY TO INVEST IN GOLD???

Major threat of decrees supply. Declining production and increasing demand Central banks selling lessdeclining trend. Strong demand for Gold in emerging markets particularly India and China. Strong investment demandinvestments in Gold.

HOW TO INVEST IN GOLD?

Physical Gold/Jewelry

Commodity Exchange

ETFs

WHAT IS GOLD ETF

Gold ETF is a security listed on the stock exchange available for trading with an intention to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold.

WHY BUY GOLD ETFS ?

Gold Exchange Traded Funds are listed on the stock exchange. They are not in physical nature. Retail investors can buy gold as little as 1 gram or less. Its 99.95% pure.

HOW TO BUY ?
Need to have DEMAT account. Can buy or sell on stock exchanges like NSE/BSE. Investment like as SIP.

How

it will work?

OPTIONS AVAILABLE IN INDIA

Gold Bees ETF UtI Gold ETF Kotak Gold ETF Reliance Gold ETF Quantum Gold ETF SEBI Gold ETF Religare Gold ETF HDFC Gold ETF ICICI Gold ETF Axis Gold ETF Birla Sun Life Gold ETF

GOLD ETF VS. BUYING PHYSICAL GOLD

Parameters Mode Safety/Storage Purity of Gold Pricing Gold ETF Demat No risk of theft 99.5% or higher Transparent, Low on cost. On business days on the exchange 1unit(1gramofGold) Jewelry Jewelry/Bar/Coins High Risk Cant say Cant say Banks Bar/Coins High Risk High on Purity High Mark up Low on Liquidity

Liquidity
Denomination

Relatively Low Liquidity Pre-defined

Pre-defined

THANK YOU!!!
Any Quarries???