Products

Major Characteristics

  • Gold (Chemical Symbol-AU) is primarily a monetary asset and partly a commodity.
  • Gold is the world's oldest international currency.
  • Gold is an important element of global monetary reserves.
  • With regards to investment value, more than two-thirds of gold's total accumulated holdings is with central banks' reserves, private players, and held in the form of high-karat jewellery.
  • Less than one-third of gold's total accumulated holdings are used as 'commodity" for jewellery in the western markets and industry.
gold

Demand and Supply Scenario

  • Global gold demand was impressive in 2011 with the volume growing to 4574 MT.
  • Investment was the main driver of growth, although jewellery and technology were resilient in the face of higher gold prices.
  • Record mine production was offset by lower recycling activity and significant central bank purchases.
  • Demand for gold bars and coins accelerated as a result of concern over the financial health of the Eurozone, high inflation in some countries, positive price expectations, and relative poor performance of a range of alternative investments.
  • In 2011, gold mine production increased by 83 MT to 2822 MT; a third year of growth and a second successive all-time high.

Global Scenario

  • London is the world's biggest clearing house.
  • Mumbai is under India's liberalised gold regime.
  • New York is the home of gold futures trading.
  • Zurich is a physical turntable.
  • Istanbul, Dubai, Singapore, and Hong Kong are doorways to important consuming regions.
  • Tokyo, where TOCOM sets the mood of Japan.

Indian Scenario

  • India is the largest market for gold jewellery in the world and a key driver of the global gold demand.
  • The domestic drivers of gold demand are largely independent of outside forces. Indian households hold the largest stock of gold in the world. Two thirds of the Indian demand for gold comes from the rural parts of the country.
  • In 2011, gold’s role as an inflation hedge bolstered its appeal in India.
  • The nation witnessed jewellery and investment demand of 933.4 MT.
  • The nation was by far the largest single investment market in 2011 and accounted for 25% of the total bar and coin demand. India imported a record 969 MT of gold in 2011.

Factors Influencing the Market

  • Above ground supply of gold from central bank's sale, reclaimed scrap, and official gold loans.
  • Hedging interest of producers/miners.
  • World macroeconomic factors such as the US Dollar and interest rate, and economic events.
  • Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices.
  • In India, gold demand is also determined to a large extent by its price level and volatility.

Measurement

Weight Conversion Table

To convert fromToMultiply by
Troy ounces Grams 31.1035
Million ounces Tonnes 31.1035
Grams Troy ounces 0.0321507
Kilograms Troy ounces 32.1507
Tonnes Troy ounces 32,150.70
Kilograms Tolas 85.755
Kilograms Tolas 26.7172
Kilograms Bahts 68.41
Troy ounces Grains 480.00
Troy ounces Avoirdupois ounces 1.09714
Troy ounces Penny weights 20.00
Avoirdupois ounces Troy ounces 0.911458
Short tonne Metric tonne 0.9072

Purity

Gold purity is measured in terms of karat and fineness :

Karat : pure gold is defined as 24 karat

Fineness : parts per thousand

Thus, 18 karat = 18/24 of 1, 000 parts = 750 fineness

Gold Guinea :

January 2013 Contract Onwards

Gold M :

January 2013 Contract Onwards

May 2013 Contract Onwards