Is buying Gold a good investment

1
Is buying Gold a good investment?

• Presented by Shaun Sohl, Sam Patel, Anthony
  Hughes and Steven Rowlands

2
WHAT IS GOLD?

• Atomic Number79
• Atomic Weight196.96655
• Melting Point1337.33 K (1064.18C or
  1947.52F)
• Boiling Point 3129 K (2856C or 5173F)
• Density 19.282 grams per cubic centimeter
• Phase at Room Temperature Solid Element
• Classification Metal

3
History of Gold

• Gold is an attractive and highly valued metal
  which has been known for at least 5500 years.
  Gold is sometimes found free in nature but it is
  usually found in conjunction with silver,
  calcite, lead, zinc or copper .

Gold is the most malleable and ductile of all
known metals. A single ounce of gold can be
beaten into a sheet measuring roughly 5 meters on
a side.
4
Top Gold producing countries

• Gold is a metal which can reach a staggering
  value, and is always in high demand whether it be
  wedding rings, bracelets, watches etc. The top 4
  Gold producing countries are South Africa,
  U.S.A, Australia and Canada. These are among the
  largest countries in the world and can finance
  such mining into the discovery of Gold.
• Although these countries are the top
  producers of Gold, it is mined in countries such
  as Peru (Pierina Mine) and also Indonesia
  (Grasberg Mine)

5
Why invest in Gold?

• The value of gold, in terms of real goods and
  services that it can buy, has remained remarkably
  stable. In contrast, the purchasing power of many
  currencies has generally declined. This is why
  gold is often bought to counter the effects of
  inflation and currency fluctuations.
• Gold has consistently reverted to its historic
  purchasing power parity
• Gold has proved to an effective preserver of
  wealth
• During periods of financial, economic and social
  turmoil, gold has been a safe refuge when the
  value of other assets was all but destroyed, due
  to it being a commodity, which means the value
  will usually stay around the same price or
  increase, it will very rarely decrease.

6
Risk Factors of Investing in Gold

• When investing in any sort of market, along
  with the advantages, there are also going to be
  some disadvantages which include risks involved.
  Risk factors include
• Price performance
• Liquidity
• Ease of Trading
• Central Banks Transactions
• When investing in Gold, the factors above
  need to be taken into consideration. The prices
  performance could suddenly drop, this meaning the
  value would then drop, meaning it would be harder
  to sell etc.

7
If you where to Invest in Gold

• If you where looking to invest in Gold, and
  make it profitable to yourself, you would need to
  analyse the following
• Do you want a real asset that you can have
  available at all times or do you simply want
  exposure to the gold price because you believe it
  is likely to rise?
• What costs are involved? These may include
  taxes, commissions, premiums, storage or
  insurance.
• Where would you store the Gold? Home, Safe etc.
• All the above need to be analysed carefully
  before investing in Gold, or it could prove to be
  a bad decision i.e. financially.

8
Gold Supply and Demand

• The following is in relation to the world
  Gold council, who investigated into the supply
  and demand of Gold, and found the following
  statistics (2005)
• 56 rise in investment demand in third quarter of
  2005
• Total gold demand up 7 in tonnes and 18 in
  dollar terms
• Seventh consecutive quarter of positive growth in
  total tonnage demand, and tenth consecutive
  quarter of double-digit growth in total value
• Year-on-year growth for gold jewellery in the
  first three quarters of 2005 up 12 in tonnage
  terms and 20 in dollar terms

9
(No Transcript)
10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
(No Transcript)
14
(No Transcript)
15
(No Transcript)
16
(No Transcript)