1. GOLD MARKET

2. WHAT IS GOLD ?
 Gold is a chemical element with the symbol Au (from Latin:
aurum "gold") and an atomic number of 79
 Gold has been a valuable and
highly sought-after precious
metal for coinage, jewelry,
and other.
 Gold standard most common
basis for monetary policies
throughout human history,
being widely supplanted by
fiat currency only in the late 20th century.
 Gold has also been frequently linked to a wide variety of symbolisms and
ideologies

3. WHY GOLD IS IMPORTANT ?
 Monetary exchange
 Gold has been widely used throughout the world as a vehicle for
monetary exchange, either by issuance and recognition of gold
coins or other bare metal quantities, or through gold-convertible
paper instrument by establishing gold standards in which the
total value of issued money is represented in a store of gold
reserves.
 Pure gold is too soft for day-to-day monetary use and is typically
hardened by alloying with copper, silver or other base metals. The gold
content of alloys is measured in carats (k). Pure gold is designated as
24k.

4. WHY GOLD IS IMPORTANT ?
 Investment
 Gold as an investment.
Many holders of gold store it in form of bullion coins or bars as a
hedge against inflation or other economic disruptions. However,
some economists do not believe gold serves as a hedge against
inflation or currency depreciation.

5. WHY GOLD IS IMPORTANT ?
 Jewelry
The softness of pure (24k) gold, it is usually alloyed with base metals for use in
jewelry, altering its hardness and ductility, melting point, color and other
properties. Alloys with lower carats, typically 22k, 18k, 14k or 10k, contain
higher percentages of copper, or other base metals or silver or palladium in the
alloy.
 Industry
Gold solder is used for joining the components of gold jewelry by high-
temperature hard soldering or brazing. If the work is to be of hallmarking
quality, gold solder must match the carat weight of the work, and alloy
formulas are manufactured in most industry-standard carat weights to color
match yellow and white gold.

6. GOLD RESOURCE
 Gold extraction can be the most economical in large, easily mined
deposits. Ore grades as little as 0.5 mg/kg can be economical.
Typical ore grade in the open-pit mines are 1-5 mg/kg while are
grades in underground or hard rock are usually at least 3 mg/kg.
 Since the 18th Century, Witwatersrand Gold Rush located in South
Africa discovery of some of the largest gold deposit in the world
has ever seen. Other major producers are the United States,
Australia, Russia and Peru. Mines in South Dakota and Nevada
supply two-third of gold used in the United States. At the end of
2009, it was estimated that all the gold ever mined totaled
165000 ton.

7. GOLD RESOURCE
 China is the world’s largest producer of gold. Its production increased by 62%
since 2001 while world output fell by 9.6% during the same period. The
production rose from 285 to 300 ton of gold.
 Australia is the second largest gold producer in the world with 215 ton. It has
been declined steadily since its peak in 1998.
 South Africa has lost it place of number 1 of gold production in 2007, now it’s
the third largest in the world with the United States of America. It can produce
of 215 ton of gold.
 Russia gold mines can produce 185 ton of gold.
 Peru can produce 180 ton of gold. Its production grew by 30.4% since 2001.
 Canada is the country of mining, not only for these abundant resources but all
the half mines in the world are located here. This country contains geologist
and mining engineers among the best in the world. Its production fell down
since 1991 for 43% and increased by 5.2% in 2008. Canada produced 95 ton.
 Indonesia can produced 100 ton of gold; it increase of 66% by 2008 and
decreased 23% compared to 2001.

8. GOLD SECURITY
 The comprehensive range of gold bullion bars can be refined up
to 999.9, or even 999.99 purities and available from 400-ounce
(12.5 kilograms). It accepted as ‘Good Delivery’ in all major
markets worldwide. Sizes and purities of bars are matched to the
special requirements of regional markets, fabricators or end
users. All bars are subjected to rigorous inspections and weighing
before packing and dispatch, as would be expected of the world’s
perfectionist in precious metals.

9. GOLD SECURITY
 Each 24K Gold Bar will be equipped with
the certificate which each identical on
the series number.
 On the gold bar will be clearly identify
the brand, certified assayer, gross
weight, purity gold and identical series
number.

10. GOLD SECURITY
 This is the 24K Gold Bar that sell in Thailand,
which the gross weight have been change to
‘Baht’. One ‘Baht’ is equal to 15.16 grams.
The rest of gold bar will be stamp with the
Brand, gross weight in Baht, certified
assayer, and identical number. Each bar will
come with the certificate from the assayer
company.
 The 24k gold bar with certificate can be sell
worldwide, but gold bar that have a ‘Baht’
unit can be sell only in Thailand as it’s the
one who use these unit in the world.

11. GOLD SPECIFICATION
 The gold standard is a monetary system in which
the standard economic unit of account is a fixed
mass of gold. There are distinct kinds of gold
standard. First, the gold specie standard is a
system in which the monetary unit is associated
with circulating gold coins, or with the unit of
value defined in terms of one particular
circulating gold coin in conjunction with
subsidiary coinage made from a lesser valuable
metal.

12. GOLD BAR PURITIES
Gold Bar Purities percentage
100
99
98
97 Gold Bar Purities percentage
96
95
94
Dubai Iran Hong Kong Thailand

13. THE FLUCTUATING GOLD MARKET AND
PRICE OF GOLD
 The fluctuation of Gold prices can also be influenced by
how expensive it is to explore for and develop gold to
produce the product needed for selling gold or make it
into sellable gold jewelry. Because of the constant
fluctuating costs of things like oil and staffing, as the cost
to mine the gold fluctuates, so will the value of the gold
produced. Considering the high rate of oil prices, mining
for gold on a large scale would be very detrimental to the
economy because it would cost entirely too much to mine
for. Therefore, if one keeps in mind the cost of other
economic resources then it is easier to predict the value of
gold.

14. PREVIOUS GOLD PRICE
 Gold is an Asset
 Gold Prices are usually denominated in US
Dollars
 Gold prices are linked to the value of US Dollars
 Historical relationships
 Gold Price Forecast

15. MAIN GOLD MARKET SWITZERLAND.
 The term Suisse or Swiss gold bars refers to some of the
finest, purest and highest quality gold bullion bar products
manufactured in Switzerland. They enjoy worldwide
recognition, have been traded on international gold bullion
markets for decades and are popular amongst investors seeking
to profit from the current gold Bull Run.
 One of the most important reasons why Suisse gold bars are
highly regarded and trusted around the world is because they are
manufactured in gold refineries that have met strict quality
controls established

16. TRADING GOLD STRATEGY
 With the price of gold hitting all time highs many traders are
wondering if gold trading is a great way to be able to make
additional profits. One way that this can be done is through the
trading of the gold futures contract. This is where you are
speculating that the price of gold will rise or fall in the future.
Historically speaking gold has been a great long term investment
during times of economic uncertainty or crisis.

17. PUSH AND PULL GOLD MARKETING STRATEGIES
 1. Push strategy
A push promotional strategy involves taking the product
directly to the customer via whatever means to ensure the
customer is aware of your brand at the point of purchase.
"Taking the product to the customer"
 2. Pull strategy
A pull strategy involves motivating customers to seek out
your brand in an active process.

18. THE GOLD COST : DAILY MARKET QUOTATION

19. HOW GOLD TRADE IN THAILAND FUTURE
EXCHANGE MARKET
 There have 2 main transaction in Thailand future exchange
market
 Trading Procedure
 Investors can trade TFEX’s products by placing orders via their brokers which
are TFEX members (Members).
 Trading system
All TFEX’s derivatives contracts are executed, cleared and settled
electronically through the integrated trading and clearing platform. The state-of-
the-art technology solutions are the latest development of NASDAQ OMX Market
Technology. NASDAQ OMX Market Technology has successfully developed
derivatives exchange trading platform in 26 countries worldwide including North
America, Europe and Asia region. The platform can support various types of
exchange-traded derivatives contracts, including futures and options. It also
supports different types of orders, including combination or spread orders. These
built-in features facilitate investors’ need to execute transactions with advanced
strategies.

20. HOW GOLD TRADE IN THAILAND FUTURE
EXCHANGE MARKET
 There are two trading methods.
1. Electronic Trading Transaction
2. Block Trading Transaction

21. HOW GOLD TRADE IN THAILAND FUTURE
EXCHANGE MARKET

22. MARGIN AND MARK-TO-MARKET
 Under the TCH’s clearing rules, all traded futures contracts must be cleared and settled
on the next business day (T+1). Each futures contract traded on the TFEX will be
marked to the market daily based on the futures settlement price.
 An investor is required to maintain a margin account with a broker and a clearinghouse
member is required to maintain a margin account with the clearinghouse. The
clearinghouse will stipulate the margin rate and then will re-evaluate the margin
requirements for each member’s base on a daily basis.
 For a client, when opening an account to trade futures, a broker will ask an
investor for an initial deposit to cover the initial margin for each contract to
buy or sell. At the end of each day, the broker marks-to-market the investor’s
open futures positions. This is the process by which the broker will add and/or
deduct gains and losses from the account’s balance. If client’s margin deposit
falls below a certain level (as determined by the broker) the broker will then
ask the investor to deposit additional money into the account to bring the
margin back up to the required minimum. This is called a variation margin. In
the event that the client has made a profit from his/her futures position, the
client is then able to withdraw the money from the account.

23. WHY GOLD IS THE GOOD INVESTMENT
COMPARED TO OTHER ASSET
 People accept
 When in crisis gold will have value more than
other asset
 Less risk compare with stock
 Return on asset higher than other asset
 Can keep for long time

24. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
 The price of gold has increased a stunning 400% in the last
decade and 26% on 2010 alone, trading today (9/11/11) at
$1843.60 in the 24-hour New York spot gold price [1],
 which is the most commonly cited gold price. What makes this
interesting is that traditionally gold has been considered a very
low risk and low expected return investment that has been used
merely to balance some of the risk in an investors’ portfolio.
Meanwhile, at the beginning of the new millennium, we have
been living, and continue to live, in times of great political and
economical uncertainty on a global scale. In this chapter it will be
studied what kind of uncertainties have had an effect on the
demand of gold as an investment and the price of gold, and what
is the rationale behind this. [2]

25. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
 The actual demand of gold and gold products as such has been
steadily increasing in the past decade. The increase in this
demand is however been relatively slow and can’t really alone
explain the high price. There is also a theory of price
manipulation that stipulates that the price of gold has been
suppressed artificially low by the banks and the governments for
the past two decades. Arguably the central banks actually hold
only about half the amount of gold they have reported and
secretly sold the other half to the market, which would prevent
the prices from rising to their actual value. This theory has
however not been proved and therefore can’t either explain the
high price of gold. Now we can finally go in to the subject of
global financial and political crises and their implications on gold
price. [3]

26. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
 A very simple, yet a valid relation between global crises and the price of
gold is that when everything else in the markets is falling, gold price
goes up. This is mainly because investors believe that gold will maintain
its value when the prices of other commodities are falling and the
interest rates remain low. Perhaps the single biggest factor that drives
people to invest in gold is however that today the price of paper
currency is so volatile. Financial crises actually affect mostly to the value
of paper currency, which in turn affects the price of gold. The main
reasons that affect the price of paper currency are as follows.
 Political unrest
 Economic depression
 Rising Inflation

27. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
 As mentioned in the first paragraph of this chapter, this has truly been a decade of
financial and political crises, which some argue that started from the 9/11 terrorist
attacks. At the beginning of the millennium we also witnessed the burst of the IT-
bubble, which caused the value of the technology stocks to crash. Many people
already at that time turned to investing in gold. In 2008, the subprime crisis
crashed the stock markets again and this time the crash was even worse. The world
economy is still getting over.
 the crisis and especially the U.S economy is having major problems as the
government debt and the unemployment figures are going through the roof. Also
the Euro zone has been dealing with big problems as some of the southern
countries such as Greece, Italy and Portugal have been piling up the national debt
up to a brink of default. The rising concerns of big European economies defaulting
has yet again made gold a more interesting investment option as the markets are
at risk to take another tailspin. It remains to be seen if these risks actually realize.
Some of the most recent events and the implicated effect on the price of gold are
illustrated in Figure 1 and explained as follows. [5]

28. FIGURE 1: RECENT EVENTS THAT HAVE HAD AN
IMPACT ON GOLD PRICE [6]
 Figure 1
highlights some
interesting
events in the
U.S such the
cutting of the
U.S debt
rating, which
instantly raises
the price of
gold. Then
again the two
other events in
the figure
highlight the
raise of debt
ceiling and the
extension of
low interest
rate periods

29. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
 Now, these events can be considered as positive news in terms of avoiding an
economical meltdown. However the reaction in the markets is still that the price of gold
is going up, only with increased volatility. This is mainly because that even if the
meltdown was avoided, there remain high risks of an economic disaster as both the
Euro zone and the U.S are crumbling. However this just goes to show that not always
good or bad news have the expected effect on gold price. [6]
 Now, how can we use this information to figure out if and when one should invest in gold spot or
the futures market? Well, we have to predict where the gold price is going to move and is there
going to more economic disasters or not. It can be expected that a major crisis will raise the price
of gold, while if such crises can be avoided and the financial markets stabilize, we can expect the
demand, and thus the price of gold to fall. Most experts at the moment believe that the price of
gold is still going to rise to at least $2000 an ounce, while some experts have even made wild
predictions that the U.S government will lose control of the dollar, which would skyrocket the gold
price anywhere from $5000 up to $10000. Then there are also skeptics who believe the current
gold price is nothing but another bubble waiting to burst. They claim that everybody is just
following suit and investing in gold blindly and that the hype has raised the price much higher than
the actual value is. The bubble could then burst when the financial situation calms down and the
interest rates go up. But of course if everybody believed that gold would be worth at least $2000
dollars an ounce, it would already be traded at that price in the stock markets, according to the
theory of perfect capital markets. [2]

30. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
 So in conclusion, is gold a good investment? Well it depends on your
investment strategy and the amount of risk you are willing to take. Gold is
clearly no longer a low risk investment with the increased price volatility and
the suspicions of a price bubble. So you may now want to have it as the risk
balancing investment in your portfolio and keep in mind that you also need to
diversify to some low risk investments as well. I personally think that it could
be a good idea to have some portion of your assets invested in gold since it is
very likely that there’s going to be more financial and political crises in the near
future and the gold price will continue going up. One thing is for certain
though; if you know that Greece or the U.S will default tomorrow and no one
else knows it, invest your money in gold today.