1. GOLD MOVEMENTS & ITS
IMPACT ON
INDIAN ECONOMY
Mayank Sajwan
Roll no- DBS/2010-12/73
MBA 3rd Semester
Email:- sajwanmayank@gmail.com

2. INTRODUCTION
• Gold is a soft, shiny, malleable and ductile metal and is a
chemical element with the symbol Au and atomic number 79.
Pure gold has a bright yellow .
• A total of 165,000 tonnes of gold have been mined in human
history, as of 2009.

3. GOLD USES
• Gold is an ancient metal of wealth, commerce and beauty, but it
also has a number of unique properties that make it invaluable
to industry. These properties include:
• Resistance to corrosion
• Electrical conductivity
• Ductility and malleability
• Infrared (heat) reflectivity
• Thermal conductivity

4. Top 10 Gold Consuming Countries
1. India
2. United States
3. China
4. Turkey
5. Saudi Arabia
6. United Arab Emirates
7. Egypt
8. Italy
9. Pakistan
10. Vietnam

5. Top 10 Countries Produce Gold
1. South Africa
2. Australia
3. United States
4. China
5. Peru
6. Russia
7. Indonesia
8. Canada
9. Uzbekistan
10. Papua New Guinea

6. GOLD PRICES IN INDIA FROM 2000-2011
(PER 10 GM)
YEAR Price
2000 4400
2001 4300 YEAR
2002 4990 Price
2003 5600
2004 5850
2005 7000
2006 8400
2007 10800
2008 12500
2009 14500
2010 18500
2011 26400

7. Importance of Gold in Defining Status
Gold is used to define the status of the 3 classes .i.e.
1. Elite class
2. Middle class ( Upper middle, Lower middle)
3. Poor Class
Because the majority of Elite class who is interested in purchase the things
made from gold to maintain their status.
But in case of middle class they purchase Gold ornaments only when there
is some special occasion .i.e. during marriage or any function.

8. IMPACT OF GOLD
IMPACT OF GOLD ON SENSEX
Gold is an important saving instrument in India and is very often used as a protection against
inflation, it is expected that gold may be looked upon as alternative asset for those holding idle
money. Even though gold is considered to be the best alternative source of
investment, investor’s have tendency to switch to gold investment when they find the market to
be too risky.
IMPACT OF GOLD ON INTEREST RATES
• Interest rate is more when the economic condition is stable. If interest rate is lower money gets
easily available. If investor invests his money he would not get the high returns. In such
scenario Gold is good option due to its store value
• Whenever interest rates fall, gold prices increase. Lowering interest rates increases gold prices
as gold becomes a better investment option.

9. IMPACT OF GOLD ON EXCHANGE RATES
The rate at which one currency is converted into another currency is the Rate of Exchange.
When the dollar appreciates it takes more dollars to buy the gold. Gold is imported from the
foreign country and US dollar is standard currency for trades occurring internationally. Hence as
the dollar price increases or rupee depreciates, gold price increases simultaneously.
IMPACT OF GOLD ON INFLATION
"Millions of people all over the world regard gold as 'money,' if not the only 'true' money." As a
consequence, the price of gold commands attention, and rightly so, because it serves to
indicate general price stability or inflation. But gold is also a commodity, used in jewelry and by
industry. This means that the details of its demand and supply affect its pricing, and need to be
considered when gold is used to assay monetary policy.