...venture. Explain a new business venture that you intend to undertake. Your strategic plan should cover the following considerations: * Nature of business venture * Analysis of the internal/external environment * SWOT analysis in relative comparison to current competitors * Your intended business strategy * Justification to support your intended strategy Sound and Solid Investment MOHAMMAD HATTA & PARTNERS INVESTMENT SERVICES (SAMPLE) ------------------------------------------------- SAMPLE Disclaimer: This is a sample business plan which is prepared as part of the assignment for Strategic Management Class. The reference is made to Public Gold. Some data are fictitious in order to capture the main purpose of this class that is to apply Strategic Management in business - Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives. CONTENTS 1. BACKGROUND OF BUSINESS VENTURE 2. EXECUTIVE SUMMARY 3. GENERAL COMPANY DESCRIPTION 4.1. COMPANY OVERVIEW 4.2. MISSION AND VISION 4.3. STRENGTHS AND CORE COMPETENCIES 4.4. CHALLENGES 4. INDUSTRY ANALYSIS Question...
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...Gold bonds right solution to reduce gold imports 7 Feb, 2013, 0325 hrs IST Also, traditionally, gold jewellery is seen not as an investment tool, but more as a symbol of social status, fashion accessory and family possession. By: Jignesh Shah It is common knowledge that by tapping Indian household gold through gold bonds, the country can reduce imports of the yellow metal significantly. However, gold bonds have so far failed to fetch good response. And there are many reasons for this. Indians have a passion for holding jewellery. They do not wish to part with their ornaments. Also, traditionally, gold jewellery is seen not as an investment tool, but more as a symbol of social status, fashion accessory and family possession. Ornaments have aesthetic value too. People pay up to 10% making charges for ornaments. Even if gold is returned to a depositor redeeming her deposit certificate, she will not get ornaments in their original shape. She will only get a gold bar or coin instead of ornaments surrendered by her. If the government offers higher rate of interest, there is a chance of interest-rate arbitrage between international gold leasing rate and the interest on gold bond. Today, gold lease rate moves around 1-1.5% per annum in the international market. If the government offers an interest of 4-5% per annum on gold bonds, bullion importers may import large quantities from international suppliers on lease basis and convert the same into gold bonds. If the government...
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...an overview of why gold is a good investment choice. I will give an analysis of gold’s current and historical prices, why an investor should invest in gold, and the wide range of options that are available to an investor that chooses to invest in gold. Gold is recognized worldwide as a true form of currency. It has a universal store of value; it can function as a hedge against inflation, protection against the declining value of the dollar and is a good option to sustain wealth in the declining financial market. Gold is a currency that option and is desired by many people, easy dividable, scarce, and durable. Gold had an intrinsic value before it became money and that is the foundation of its worth. Gold has increased in price over the last decade by 500%. In the increase in price is attributed to the drop in the value of the dollar and the expectation that inflation will rise to above average levels. Gold was valued at $900 an ounce in April 2008, $1,888.70 in August 2011 and as of July 25, 2012 it was valued at $1,608 an ounce. Through March 2012 the spot price of gold returned of 18.5 percent, while the S&P 500 has had a return of only 4.11 percent. The chart below shows the increase in gold prices for the last ten years and gold’s performance price for the last 30 days, six months, one year, and the last five years. 10 year gold price history in US Dollars per ounce. http://goldprice.org/gold-price-history.html http://goldprice.org/gold-price-history-html ...
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...PAPER ON “Gold ETF’s – An Investment Option” By Pawan Walecha (M.B.A.-Finance) pavan_walecha@rediffmail.com 9595532810; 9819420664 Gold ETF’s – An Investment Option Abstract Financial investment is putting money into something with the expectation of gain that upon thorough analysis has a high degree of security for the principal amount, as well as security of return, within an expected period of time. Gold has been used as a store of value and form of currency since ancient times. Gold has always been a symbol of stability and wealth. People tend to think about buying gold more as a saving than vehicle for as an investment but it does not need to be so. Gold has the same features as every other asset worth investing in, whether stock, bonds, mutual funds, or even commodities like corn, tobacco, crude oil or other precious metals. The present paper aims at discovering and analyzing risk in the emerging security in the stock market i.e Gold ETFs. The basic aim of the study is to study the financial performance of Gold etfs and to check its suitability for inclusion of gold etfs, rating of selected Gold etfs is also done based on funds performance. Keywords: Gold Exchange Traded Funds, Beta, Performance evaluation, NSE. Introduction The idea of Gold ETF was first conceptualized by Benchmark Asset Management Company Private Ltd. in India, when they filed a proposal with the SEBI in May 2002. However, there was no regulatory approval then and later it was launched in March...
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...International Journal of Applied Business and Economic Research, Vol. 9, No. 2, (2011): 145-165 STUDY ON DYNAMIC RELATIONSHIP AMONG GOLD PRICE, OIL PRICE, EXCHANGE RATE AND STOCK MARKET RETURNS K. S. Sujit1 and B. Rajesh Kumar2 Abstract: The dynamic and complex relationship among economic variables has attracted the researchers, policy makers and business people alike. This study is an attempt to test the dynamic relationship among gold price, stock returns, exchange rate and oil price. All these variables have witnessed significant changes over time and hence, it is absolutely necessary to validate the relationship periodically. This study takes daily data from 2nd January 1998 to 5th June 2011, constituting 3485 observations. Using techniques of time series the study tried to capture dynamic and stable relationship among these variables using vector autoregressive and cointegration technique. The results show that exchange rate is highly affected by changes in other variables. However, stock market has fewer roles in affecting the exchange rate. In this study we tested two models and one model suggests that there is weak long term relationship among variables. JEL classification: C22; E3; Keywords: Unit root tests; granger causality test, Cointegration; Vector auto regression (VAR) INTRODUCTION Gold was one of the first metals humans excavated. Gold as an asset has a hybrid nature: it is a commodity used in many industries but also it has maintained throughout history a unique...
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...Mounting Demand in Indian Gold Market Speak of a Paradox? This case study was written by Hepsi S warna under the direction of Akshaya Kumar Jena, IBS CDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was written from published sources. License to use for IB S M umbai S em-I, C lass of 2014 Ó 2009, IB S C ase Dev elopment C enter. A ll rights reserv ed. To order copies, call +91-08417-236667 or w rite to IB S C ase Dev elopment C enter (IB S C DC ), IFH E C ampus, Donthanapally , S ankarapally Road, H y derabad 501 504, A ndhra P radesh, India or email: info@ibscdc.org www.ibscdc.org Do Soaring Price and Mounting Demand in Indian Gold Market Speak of a Paradox? Demand for gold is a w ides pread obs ervable fac t ac ros s the w orld. How ever, the major demand for 115.249.252.231/casestudies/mumbai/ME0006.asp#_ftn1 1/4 7/13/12 IBS Case Studies Demand for gold is a w ides pread obs ervable fac t ac ros s the w orld. How ever, the major demand for gold c omes from five c ountries , namely India, Italy, T urkey, US and China. Among thes e c ountries , w hic h ac c ount for 55% of the total gold demand, India’s s hare alone c omes to around 25%. Cultural and religious traditions involving w earing of jew ellery play a major role in influenc ing Indian gold demand. Around 75% of the w orld demand for gold is jew ellery-bas ed and...
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...components of jewellery include not only traditional gold but also diamond, platinum accompanied by a variety of precious and semi-precious stones. The Indian gems and jewellery sector is expected to grow at a CAGR of around 13 per cent during 2011 – 2013, on the back of increasing government efforts and incentives coupled with private sector initiatives, according to a report ‘Indian Gems and Jewellery Market Forecast to 2013’, by RNCOS. As per the credit rating agency Crisil, the diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand. Gems and jewellery exports from India is expected to grow by 30-35 per cent in 2010-11, according to the Gem and Jewellery Export Promotion Council (GJEPC), on the back of revival in demand in the international markets. Industry Structure Although, the market is highly dominated by the unorganised players, with increase in consumer income and economic prosperity, the future of organised retail in India is very bright. In its bid to enhance the market strategy, a gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ 441.1 million is being planned to be set up by Gold Souk, the jewellery mall developer. The company plans to have residential apartments named Gold Souk City, apart from having gems and jewellery manufacturers from Thailand and Dubai who will open their units in India. Gold India is one of the largest bullion markets...
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...Gold Fundamental Report February 2012 Disclaimer This report has been prepared by the Knowledge Management Department of NCDEX Limited for the purpose of information dissemination. The facts are reported from publications and have not been checked for authenticity. NCDEX and its employees will not be responsible for any decision taken by the reader based on this report and are adv advised to take independent advise on the commodity(is) dealt in this report . For more information contact Ashwin Dilip Vidhate Knowledge Management Group NCDEX Ltd. ashwin.vidhate@ncdex.com +91 022 6640 6836 2 Table of Contents 1. Introduction ....................................................................................................................................................................................... 4 2. Gold supply ........................................................................................................................................................................................ 5 Gold supply: Indian scenario............................................................................................................................................................ 14 3. Gold demand ..................................................................................................................................................................................... 15 Gold demand: Indian scenario ..................................................
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...the bank. It has been established that Gold and Silver retailers, who are among ARB corporate clientele, usually buy USD from ARB and use the funds to acquire their precious metals from ANCB. Hence, herein lies the market basis of the proposed offering for the precious metals. Currently, ANCB is the only organization in the financial trade market that deals in the trade of precious metals and ARB envisions it to be its only competitor. ARB will limit itself to the corporate clients, who buy on a continuous and regular. Seasonal request to buy either gold or silver by private and affluent clients will not be accommodated. 2 – EXECUTIVE SUMMARY 3 – INTRODUCTION Precious metals have been traded for eons. Fairly common are gold and silver which apart from their ornamental value, they have a variety of industrial and commercial uses. Among these precious metals, gold has been chosen as a special interest metal. Gold is a precious metal that a whole industry has developed and evolves into a multibillion-dollar industry led by huge corporations. The gold industry is stratified with many major and minor players working together. Key among these relevant stakeholders includes the mining companies, the gold processing companies, gold traders, and consumers. Gold mining is one of the most intensive, which is carried out extensively around the world. The World Gold Council (WGC), a market development organization, puts the production of gold globally to be in the region of 3,000 Metric...
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...Angela Santacruz Shopify: History: * Online store created to sell snowboard equipment directly to those who loved the sport. (Shopyfi, 2015) * The company wanted to own their own brand and build relationships with their customers, along with selling their products. But they realize that a lot of others companies were in need of an online shopping facility so they created Shopify. (Shopyfi, 2015) * Their main focus of creating a platform to manage every aspect of their business: from products to orders to customers, selling online, in retail stores and on the go. (Shopyfi, 2015) * From a team of 5 working employees, to a team of over 500 employees in 4 offices across Canada, they encourage everyone to experiment, take risk and push the envelope to the next level. (Shopyfi, 2015) Services at Shopyfi: 1. Use shopyfi to create your online store: these services give customers the opportunity to design their own web page and promote their products around the world. Customers have control over the look and feel of the website, from its domain name to its layout, colors and content. But if they don’t have the skills to create it they can choose from over 100 professional store templates. (Shopyfi, 2015) 2. Sell in person: These kind of services allowed customers to sell their products online, in-stores, or in their own phones, the inventory is automatically updated in real time. Using a cart does the payment and they can email the receipt. (Shopyfi...
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...various investment alternatives: * 78% of the respondents had saved a 10-30% of their income for investment. * 71.50% & 63.50% of the respondents had invested in gold and fixed deposits respectively. * 55% & 52% of the respondents are influenced by high returns and tax benefits respectively with low risk coming next at 47.50%. * From the study, it is clear that the respondents had a varying opinion about the various investment alternatives with 55% selection for real estate as the best for high returns and 80% selected stock market as the most risky of the alternatives. * 52.50% of the respondents found it easy to access fixed deposit for investing and real estate was found to be the difficult one to invest in by 27.50%. * The study also showed that 63.50% of the respondents were more interested to invest in private sector, which means that the investors have more priority to returns rather than safety. b. About investment in gold: * The study also revealed that 69.50% & 81% of the respondents were aware of the Gold deposit scheme and Bullion bars, respectively, for investment but the awareness about Gold ETF and Mutual Funds was up to 56% and 44% respectively. * Similar to the awareness, even investment in Gold was limited to Deposit scheme and Bullion bars, with 49% and 35% opting for them. Whereas Gold ETF and Mutual funds were opted by only 23% & 20% of the investors, respectively. * Even the ratings given to gold investment...
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...Tanishq – The Turnaround Story "When we started out we didn't think that we could achieve this, but now being jewellers to the nation doesn't seem so distant." - Tanishq COO, Vasant Nangia, in March 2000. The Unsuccessful Launch In 1995, Titan Industries, India's leading manufacturer of watches, launched the Tanishq range of gold watches and jewellery. Till then, the Indian jewellery market was to a large extent unorganized, with a few recognized names such as Tribhovandas Bhimji Jhaveri and Mehrason's. Tanishq, an entirely new concept in the Indian market, thus had to struggle hard to be accepted by the customers. Industry watchers were extremely skeptical of Tanishq and doubts were being cast over its prospects. Tanishq began by offering jewellery in the 18-carat gold range, with designs borrowed heavily from contemporary European brands. The company justified its decision saying that it wanted to be 'different' from the traditional Indian offerings. Tanishq performed very badly in the next three years, posting a huge loss in 1997-98, proving its detractors right. Jacob Kurian, Tanishq's chief operating officer admitted, "Tanishq, as a concept, was far too ahead of its times." Even if one agreed with Kurian, it could not be denied that Tanishq did commit mistakes. Analysts decreed that the company's strategies were wary. At this point, Tanishq took various steps to correct the mistakes it had committed and very soon, posted its first ever operating profit in 1999. In...
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...Of Management Lucknow August 2013 A MICROECONOMIC STUDY ON GOLD Submitted to Professor Sanjay K Singh By Section E, Group J Aman Doharey (PGP30244) Mahesh Raja R (ABM11045) Prerna Pal (PGP30265) Rohit Mandappalli (PGP29341) Shradhha MeryllinePanna (PGP30280) Swagata Das Chowdhury (PGP30419) Tanuj Kumar Lodhi (PGP30420) Table of Contents Introduction Background Protection Requirement Elasticity Of Gold Gold Consumption Scenario in India Need and Objective Of Study Research Methodology Tools and Techniques Hypotheses Data Analysis 1. US Dollar 2. Crude Oil 3. Silver 4. Inflation 5. Sensex Values Findings and Conclusions INTRODUCTION This report emphasizes on studying, interpreting and illustrating the various economic factors affecting the consumption and price of the precious metal Gold. We examine the impact of factors that maybe reason for such distortion and also see how the change in gold price impacts other commodities in the open market. Background Used as a sovereign since ages, gold has always been a sought after commodity. The price variation has almost always been upwards and has had a steep rise in this trend. A few pointers about Gold can be inferred as below. Production Gold is majorly obtained through mining, other sources may include recycling, trading etc. Through these sources gold enters the market. Requirement Gold is an essential commodity in any country’s economic state. It is...
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...Gold is a chemical element with the symbol Au and atomic number 79. It is a dense, soft, malleable, and ductile metal with an attractive, bright yellow color and luster that is maintained without tarnishing in air or water. Chemically, gold is a transition metal and a group 11 element. It is one of the least reactive chemical elements, solid under standard conditions. The metal therefore occurs often in free elemental (native) form, as nuggets or grains in rocks, in veins and in alluvial deposits. Less commonly, it occurs in minerals as gold compounds, such as with tellurium as calaverite, sylvanite and krennerite. Gold resists attacks by individual acids, but it can be dissolved by aqua regia (nitro-hydrochloric acid), so named because it dissolves gold. Gold also dissolves in alkaline solutions of cyanide, which have been used in mining. It dissolves in mercury, forming amalgam alloys; is insoluble in nitric acid, which dissolves silver and base metals, a property that has long been used to confirm the presence of gold in items, giving rise to the term acid test. This metal has been a valuable and highly sought-after precious metal for coinage, jewelry, and other arts since long before the beginning of recorded history. Gold standards have sometimes been monetary policies, but were widely supplanted by fiat currency starting in the 1930s. The last gold certificate and gold coin currencies were issued in the U.S. in 1932. In Europe, most countries left the gold standard with...
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...New Earth Mining Inc. (“New Earth”) has substantial investments in the precious metals industry, specifically gold, but is facing volatile gold prices that may not be sustainable in the future. In response to this threat, New Earth should consider opportunities to diversify its business through exploration activities for other minerals. Attractive Investment for New Earth New Earth should take the opportunity to invest in the iron ore deposits in South Africa due to the following reasons: 1) It is a stable investment with long-term prospects of 15 years and a floor price of $80 per metric ton, and 2) The NPV of the project is $181.75 million, thus providing enough cash flows to cover debt and provide dividends to shareholders. Stable Iron Ore Investment The iron ore investment satisfies New Earth’s desire to diversify its business from precious metals with this potential investment life of 15 years. Prices are expected to stay over $80 per ton, with ore prices having reached a high of over $100 per metric ton in 2012. Production costs are expected to be low due to the easy access to ports from the mine location, reducing the need for infrastructure investment to support the development of the mine. Crude steel production in three Asian countries (i.e. China, South Korea, and Japan) are also expected to grow more than 35% in the next decade, with demand expected to exceed supply until at least 2016. This is an opportunity to improve the sustainability of New Earth by investing...
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