ANALYSIS OF COMMODITY MARKET (GOLD & SILVER)

Submitted in partial fulfilment of the requirements for
Post Graduate Diploma in Management (PGDM)

By
SNEHA GUPTA

ERA BUISSNESS SCHOOL
Dwarka sector-9

July 2013

Acknowledgement

I owe many thanks to all those people who helped and supported me during the process & completion of this project.

I would thank my Institution for giving me an opportunity to undertake this project.

My deepest thank to Mr. Vinay Pratap Singh (Sr. Manager online), Mr. B.Sanjeev Kumar my industry mentor, for guiding me throughout the project completion process with attention and care. He displayed all the patience required to go through the project and make necessary correction as and when needed.

My Summer Training at “SMC Global Securities Ltd.” is an ardent, unforgettable and fruitful experience. I’m overwhelmed with the friendly & co-operative attitude, and the enlightened advice and information extended to me by everyone.

I thank Prof. Hemant Indurkar – my faculty mentor for supporting and monitoring my work since the beginning of the project.

I am grateful to all the fellow employees of “SMC Global Securities Ltd” for their help, support and amiability throughout the internship.
Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for their blessings, my friends for their help and wishes for the successful completion of this project.

Mukesh Kumar Mishra Signature--------------------------- Date --------------------------------

Certificate of Originality

I --------------------------------------------------- Roll No -------------- Class of 2013, a full time bonefide student of first year of Post Graduate Diploma in Management (PGDM) Programme of Bharatiya Vidya Bhavan’s Usha and Lakshmi Mittal Institute of Management, New Delhi hereby certify that this project work carried out by me at
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ and the report submitted in partial fulfillment of the requirements of the programme is an original work of mine under the guidance of the industry mentor -----------------------------------------------------------------------------------------------------------------------------------------------------------and faculty mentor------------------------------------------------------------------------------, and is not based or reproduced from any existing work of any other person or on any earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else at any time

(Mukesh Kumar Mishra) Date: ……………………..

(Prof. Hemant Indurkar)
Date: …………………………

EXECUTIVE SUMMARY

History says that India was known as The Golden Sparrow and gold is religion in India. So true if we consider the trends of gold in India. Conforming to its name, India is one of the largest consumers of gold in the world. Considering that India hardly has any gold mining activity today, it needs to import most of its gold.
Whole commodity market is divided into two broad categories those are agriculture commodities and non agriculture commodities. Agriculture commodities include wheat, rice, pulses, cereals, edible oils, ground nut etc. Non- agriculture commodities includes crude oil, non ferrous metals like gold, silver, nickel, copper etc.
My basic study of bullion and specifically of gold & silver led me to the fact that though India is the largest consumer of gold & silver. India largely has unorganized gold market. The government policies regarding the same have also changed considerably over the years. From being a restrictive trade, now it has been opened up after the recommendation of the Tarapore Committee. Gold itself has a mass appeal in all the countries of the world and thus its prices are always under notice.
Whole commodity market is divided into two broad categories those are agriculture commodities and non agriculture commodities. Agriculture commodities include wheat, rice, pulses, cereals, edible oils, ground nut etc. Non- agriculture commodities includes crude oil, non ferrous metals like gold, silver, nickel, copper etc.
I have mainly focused upon the commodity gold & silver. What are the essential features of gold & silver as a precious metal and as a commodity?
This session would broadly deal with Gold & Silver as a commodity, its Production, Demand & Supply, fluctuation in price and its significance as a commodity traded in exchange.