15961806 Commodity Market Report

8/2/2019 15961806 Commodity Market Report

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APROJECTREPORTONCOMMODITYMARKET

ProjectSubmittedinpartialfulfillmentofPostGraduateDiplomainManagement

Submittedby:PANKAJKUMARRollNo.528Batch2007-2009

Undertheguidanceof:Dr.ShashidharanKutty-Dy.Director(Banking,Finance&Insurance)

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S.No.123456789101112131415161718192021222324252627282930

INDEXIntroductionCommodityCommodityMarketStructureofCommodityMarketDifferentTypesofCommodityTradedTurnoverofIndianCommodityExchangeMarketShareofCommodityExchangesinIndiaDifferentSegmentsinCommoditiesMarketLeadingCommodityMarketsofWorldRegulatorsLeadingCommodityMarketsofIndiaVolumesincommodityDerivativesWorldwideCommodityFuturesTradinginIndiaIntroductionBenefitstoIndustryFromFuturesTradingBenefitstoExchangeMemberWhyCommodityFutures?Whatmakescommoditytradingattractive?NCDEXsTradingSystemGoldIntroductionWhatmakesGoldspecialMarketcharacteristicsDemand&SupplyndianGoldJewelleryMarketMCXcontractspecificationsofgoldFAQonGoldGoldTerminologyConclusionBibliography

PageNo.4678910101112131414151516161718202222222223242532353637

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IndiaCommodityMarketWearemovingfromaworldinwhichthebigeatthesmalltooneinwhichthefasteattheslow.-KlausSchwab,2000(founderoftheWorldEconomicForum)

Astrongandvibrantcashmarketisapre-conditionforasuccessfulandtransparentfuturesmarket.INTRODUCTIONThevastgeographicalextentofIndiaandherhugepopulationisaptlycomplementedbythesizeofhermarket.ThebroadestclassificationoftheIndianMarketcanbemadeintermsofthecommoditymarketandthebondmarket.ThecommoditymarketinIndiacomprisesofallpalpablemarketsthatwecomeacrossinourdailylives.Suchmarketsaresocialinstitutionsthatfacilitateexchangeofgoodsformoney.Thecostofgoodsisestimatedintermsofdomesticcurrency.IndiaCommodityMarketcanbesubdividedintothefollowingtwocategories:WholesaleMarketRetailMarket

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ThetraditionalwholesalemarketinIndiadealtwithwholesellerswhoboughtgoodsfromthefarmersandmanufacturersandthensoldthemtotheretailersaftermakingaprofitintheprocess.Itwastheretailerswhofinallysoldthegoodstotheconsumers.Withthepassageoftimetheimportanceofwholesellersbegantofadeoutforthefollowingreasons:Thewholesellersinmostsituations,actedasmereparasiteswhodidnotaddanyvaluetotheproductbutraiseditspricewhichwaseventuallyfacedbytheconsumers.Theimprovementintransportfacilitiesmadetheretailersdirectlyinteractwiththeproducersandhencetheneedforwholesellerswasnotfelt.Inrecentyears,theextentoftheretailmarket(bothorganizedandunorganized)hasevolvedinleapsandbounds.Infact,thesuccessstoriesofthecommoditymarketofIndiainrecentyearshasmainlycenteredonthegrowthgeneratedbytheRetailSector.Almosteverycommodityunderthesunbothagriculturalandindustrialisnowbeingprovidedatwelldistributedretailoutletsthroughoutthecountry.Moreover,theretailoutletsbelongtoboththeorganizedaswellastheunorganizedsector.Theunorganizedretailoutletsoftheyesteryearsconsistofsmallshopownerswhoarepricetakerswhereconsumersfaceahighlycompetitivepricestructure.TheorganizedsectorontheotherhandareownedbyvariousbusinesshouseslikePantaloons,Reliance,Tataandothers.Suchmarketsareusuallysellingawiderangeofarticlesbothagriculturalandmanufactured,edibleandinedible,perishableanddurable.Modernmarketingstrategiesandothertechniquesofsalespromotionenablesuchmarketsto5


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drawcustomersfromeverysectionofthesociety.Howeverthegrowthofsuchmarketshasstillcenteredontheurbanareasprimarilyduetoinfrastructurallimitations.Consideringthepresentgrowthrate,thetotalvaluationoftheIndianRetailMarketisestimatedtocrossRs.10,000billionbytheyear2010.Demandforcommoditiesislikelytobecomefourtimesby2010thanwhatitpresentlyis.

COMMODITYAcommoditymaybedefinedasanarticle,aproductormaterialthatisboughtandsold.Itcanbeclassifiedaseverykindofmovableproperty,exceptActionableClaims,Money&Securities.Commoditiesactuallyofferimmensepotentialtobecomeaseparateassetclassformarket-savvyinvestors,arbitrageursandspeculators.Retailinvestors,whoclaimtounderstandtheequitymarkets,mayfindcommoditiesanunfathomablemarket.Butcommoditiesareeasytounderstandasfarasfundamentalsofdemandandsupplyareconcerned.Retailinvestorsshouldunderstandtherisksandadvantagesoftradingincommoditiesfuturesbeforetakingaleap.Historically,pricingincommoditiesfutureshasbeenlessvolatilecomparedwithequityandbonds,thusprovidinganefficientportfoliodiversificationoption.Infact,thesizeofthecommoditiesmarketsinIndiaisalsoquitesignificant.Ofthecountry'sGDPofRs13,20,730crore(Rs13,207.3billion),commoditiesrelated(anddependent)industriesconstituteabout58percent.

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Currently,thevariouscommoditiesacrossthecountryclockanannualturnoverofRs1,40,000crore(Rs1,400billion).Withtheintroductionoffuturestrading,thesizeofthecommoditiesmarketgrowsmanyfoldshereon.COMMODITYMARKETCommoditymarketisanimportantconstituentofthefinancialmarketsofanycountry.Itisthemarketwhereawiderangeofproducts,viz.,preciousmetals,basemetals,crudeoil,energyandsoftcommoditieslikepalmoil,coffeeetc.aretraded.Itisimportanttodevelopavibrant,activeandliquidcommoditymarket.Thiswouldhelpinvestorshedgetheircommodityrisk,takespeculativepositionsincommoditiesandexploitarbitrageopportunitiesinthemarket.TurnoverinFinancialMarketsandCommodityMarket(RsinCrores)SNo.123IMarketsegmentsGovernmentSecuritiesMarketForexMarketNationalStockExchange(a+b)a)Cashb)DerivativesIIBombayStockExchange(a+b)a)Cashb)Derivatives4CommoditiesMarket2002-032003-042004-05(E)(91)

1,544,376(63)2,518,322(91.2)2,827,872658,035(27)2,318,531(84)

3,867,936(124.4)4,160,702(133.8)3,641,672(117.1)1,147,0272,494,645

TotalStockMarketTurnover(I+II)1,374,405(56)3,745,507(136)1,057,854(43)3,230,002(117)617,989439,865314,0732,478NA1,099,5342,130,468(18.7)503,05312,452130,215(4.7)

316,551(13)515,505

519,030499,50319,527500,000

(16.7)

(16.1)

Note:Fig.inbracketrepresentspercentagetoGDPatmarketpricesSource:Sebibulletin

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STRUCTUREOFCOMMODITYMARKETMinistryofConsumerAffairs

FMC(ForwardsMarketCommission)

CommodityExchange

NationalExchange

RegionalExchange

NCDEX

MCX

NMCE

NBOT

20otherregionalexchanges

Warehouses

QualityCertificationAgencies

Hedger(Exporters/MillersIndustry)

ClearingBank

CommoditiesEcosystemMCX

Producers(Farmers/Cooperatives/Institutional)

Transporters/supportagenciesConsumers(Retail/Institutio-nal)

Traders(speculators)arbi-trageurs/client)

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DIFFERENTTYPESOFCOMMODITIESTRADEDWorld-overonewillfindthatamarketexitsforalmostallthecommoditiesknowntous.Thesecommoditiescanbebroadlyclassifiedintothefollowing:

METAL

Aluminium,Copper,Lead,Nickel,SpongeIron,SteelLong(Bhavnagar),SteelLong(Govindgarh),SteelFlat,Tin,Zinc

BULLIONFIBER

Gold,GoldHNI,GoldM,i-gold,Silver,SilverHNI,SilverMCottonLStaple,CottonMStaple,CottonSStaple,CottonYarn,Kapas

ENERGY

BrentCrudeOil,CrudeOil,FurnaceOil,NaturalGas,M.E.SourCrudeOil

SPICESPLANTATIONSPULSES

Cardamom,Jeera,Pepper,RedChilliArecanut,CashewKernel,Coffee(Robusta),RubberChana,Masur,YellowPeas

PETROCHEMICALSHDPE,Polypropylene(PP),PVCOIL&OILSEEDSCastorOil,CastorS

eeds,CoconutCake,CoconutOil,CottonSeed,CrudePalmOil,GroundnutOil,KapasiaKhalli,MustardOil,MustardSeed(Jaipur),MustardSeed(Sirsa),RBDPalmolein,RefinedSoyOil,RefinedSunflowerOil,RiceBranDOC,RiceBranRefinedOil,SesameSeed,Soymeal,SoyBean,SoySeedsCEREALSOTHERSMaizeGuargum,GuarSeed,Gurchaku,MenthaOil,Potato(Agra),Potato(Tarkeshwar),SugarM-30,SugarS-30

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TURNOVEROFINDIANCOMMODITYEXCHANGESIndianCommodityFuturesMarket(RsCrores)ExchangesMultiCommodityExchange(MCX)NCDEXNMCE(Ahmadabad)NBOT(Indore)OthersAllExchanges2004165147266,33813,98858,46367,8232005961,6331,066,68618,38553,68354,73520061,621,803944,066101,73157,14914,5912,739,34020072,505,206733,47924,07274,58237,9973,375,336

571,7592,155,122

TurnoveronCommodityFuturesMarkets(Rs.InCrores)ExchangeNCDEXNBOTMCXNMCEALLEXCHANGES2003-041490530142456238421293642004-05FIRSTHalf5401151038306957943170720

MARKETSHAREOFCOMMODITYEXCHANGESININDIA

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DIFFERENTSEGMENTSINCOMMODITIESMARKETThecommoditiesmarketexitsintwodistinctformsnamelytheOvertheCounter(OTC)marketandtheExchangebasedmarket.Also,asinequities,thereexiststhespotandthederivativessegment.Thespotmarketsareessentiallyoverthecountermarketsandtheparticipationisrestrictedtopeoplewhoareinvolvedwiththatcommoditysaythefarmer,processor,wholesaleretc.Derivativetradingtakesplacethroughexchange-basedmarketswithstandardizedcontracts,settlementsetc.

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LEADINGCOMMODITYMARKETSOFWORLDSomeoftheleadingexchangesoftheworldare:S.No.123456789101112131415GlobalCommodityExchangesNewYorkMercantileExchange(NYMEX)LondonMetalExchange(LME)ChicagoBoardofTrade(CBOT)NewYorkBoardofTrade(NYBOT)KansasBoardofTradeWinnipegCommodityExchange,ManitobaDalianCommodityExchange,ChinaBursaMalaysiaDerivativesexchangeSingaporeCommodityExchange(SICOM)ChicagoMercantileExchange(CME),USLondonMetalExchangeTokyoCommodityExchange(TOCOM)ShanghaiFuturesExchangeSydneyFuturesExchangeLondonInternationalFinancialFuturesandOptionsExchange(LIFFE)1617181920NationalMulti-CommodityExchangeinIndia(NMCE),IndiaNationalCommodityandDerivativesExchange(NCDEX),IndiaMultiCommodityExchangeofIndiaLimited(MCX),IndiaDubaiGold&CommodityExchange(DGCX)DubaiMercantileExchange(DME),(jointventurebetweenDubaiholdingandtheNewYorkMercantileExchange(NYMEX))

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RegulatorsEachexchangeisnormallyregulatedbyanationalgovernmental(orsemigovernmental)regulatoryagency:CountryAustraliaChinesemainlandHongKongIndiaPakistanSingaporeUKUSAMalaysiaRegulatoryagencyAustralianSecuritiesandInvestmentsCommissionChinaSecuritiesRegulatoryCommissionSecuritiesandFuturesCommissionSecuritiesandExchangeBoardofIndiaandForwardMarketsCommission(FMC)SecuritiesandExchangeCommissionofPakistanMonetaryAuthorityofSingaporeFinancialServicesAuthorityCommodityFuturesTradingCommissionSecuritiesCommission

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LEADINGCOMMODITYMARKETSOFINDIAThegovernmenthasnowallowednationalcommodityexchanges,similartotheBSE&NSE,tocomeupandletthemdealincommodityderivativesinanelectronictradingenvironment.Theseexchangesareexpectedtoofferanation-wideanonymous,orderdriven,screenbasedtradingsystemfortrading.TheForwardMarketsCommission(FMC)willregulatethese

exchanges.Consequentlyfourcommodityexchangeshavebeenapprovedtocommencebusinessinthisregard.Theyare:S.NO.12CommodityMarketinIndiaMultiCommodityExchange(MCX),MumbaiNationalCommodityandDerivativesExchangeLtd(NCDEX),Mumbai34NationalBoardofTrade(NBOT),IndoreNationalMultiCommodityExchange(NMCE),Ahmadabad

VOLUMESINCOMMODITYDERIVATIVESWORLDWIDE

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Source:FMCCommodityFuturesTradinginIndiaINTRODUCTIONDerivativesasatoolformanagingriskfirstoriginatedintheCommoditiesmarkets.Theywerethenfoundusefulasahedgingtoolinfinancialmarketsaswell.Thebasicconceptofaderivativecontractremainsthesamewhethertheunderlyinghappenstobeacommodityorafinancialasset.Howevertherearesomefeatures,whichareverypeculiartocommodityderivativemarkets.Inthecaseoffinancialderivatives,mostofthesecontractsarecashsettled.Eveninthecaseofphysicalsettlement,financialassetsarenotbulkyanddonotneedspecialfacilityforstorage.Duetothebulkynatureoftheunderlyingassets,physicalsettlementincommodityderivativescreatestheneedforwarehousing.Similarly,theconceptofvaryingqualityofassetdoesnotreally

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existasfarasfinancialunderlyingsareconcerned.Howeverinthecaseofcommodities,thequalityoftheassetunderlyingacontractcanvarylargely.Thisbecomesanimportantissuetobemanaged.BENEFITSTOINDUSTRYFROMFUTURESTRADINGHedgingthepriceriskassociatedwithfuturescontractual

commitments.Spacedoutpurchasespossibleratherthanlargecashpurchasesanditsstorage.Efficientpricediscoverypreventsseasonalpricevolatility.Greaterflexibility,certaintyandtransparencyinprocuringcommoditieswouldaidbanklending.Facilitateinformedlending.Hedgedpositionsofproducersandprocessorswouldreducetheriskofdefaultfacedbybanks.*Lendingforagriculturalsectorwouldgoupwithgreatertransparencyinpricingandstorage.CommodityExchangestoactasdistributionnetworktoretailagrifinancefromBankstoruralhouseholds.ProvidetradinglimitfinancetoTradersincommoditiesExchanges.

BENEFITSTOEXCHANGEMEMBERAccesstoahugepotentialmarketmuchgreaterthanthesecuritiesandcashmarketincommodities.Robust,scalable,state-of-arttechnologydeployment.Membercantradeinmultiplecommoditiesfromasinglepoint,onrealtimebasis.

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TraderswouldbetrainedtobeRuralAdvisorsandCommoditySpecialistsandthroughthemmultipleruralneedswouldbemet,likebankcredit,informationdissemination,etc.

WHYCOMMODITYFUTURES?Oneanswerthatisheardinthefinancialsectoris"weneedcommodityfuturesmarketssothatwewillhavevolumes,brokeragefees,andsomethingtotrade''.Wehavetolookatfuturesmarketinabiggerperspective--whatistheroleforcommodityfuturesinIndia'seconomy?InIndiaagriculturehastraditionallybeenanareawithheavygovernmentintervention.Governmentintervenesbytryingtomaintainbufferstocks,theytrytofixprices,andtheyhaveimport-exportrestrictionsandahostofotherinterventions.Manyeconomiststhinkthatwecouldhavemajorbenefitsfromliberalizationoftheagriculturalsector.Inthiscase,thequestionarisesaboutwhowillmaintainthebufferstock,howwillwesmoothenthepricefluctuations,howwillfarmersnotbevulnerablethattomorrowthepricewillcrashwhenthecropcomesout,howwillfarmersgetsignalsthatinthefuturetherewillbeagreatneedforwheatorrice.Inalltheseaspectsthefuturesmarkethasaverybigroletoplay.Ifwethinktherewillbeashortageofwheattomorrow,thefuturespriceswillgouptoday,anditwillcarrysignalsbacktothefarmermakingsowingdecisionstoday.Inthisfashion,asystemoffuturesmarketswillimprovecroppingpatterns.Next,ifIamgrowingwheatandamworriedthatbythetimetheharvestcomesoutpriceswillgodown,thenIcansellmywheatonthefutures17


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market.Icansellmywheatataprice,whichisfixedtoday,whicheliminatesmyriskfrompricefluctuations.Thesedays,agriculturerequiresinvestments-farmersspendmoneyonfertilizers,highyieldingvarieties,etc.Theyareworriedwhenmakingtheseinvestmentsthatbythetimethecropcomesoutpricesmighthavedropped,resultinginlosses.Thusafarmerwouldliketolockinhisfuturepriceandnotbeexposedtofluctuationsinprices.Thethirdistheroleaboutstorage.TodaywehavetheFoodCorporationofIndia,whichisdoingahugejobofstorage,anditisasystem,which--inmyopinion--doesnotwork.Futuresmarketwillproducetheirownkindofsmoothingbetweenthepresentandthefuture.Ifthefuturepriceishighandthepresentpriceislow,anarbitragerwillbuytodayandsellinthefuture.Theconverseisalsotrue,thusifthefuturepriceislowthearbitrageurwillbuyinthefuturesmarket.Theseactivitiesproducetheirown"optimal"bufferstocks,smoothprices.Theyalsoworkveryeffectivelywhenthereistradeinagriculturalcommodities;arbitrageursonthefuturesmarketwilluseimportsandexportstosmoothIndianpricesusingforeignspotmarkets.Intotality,commodityfuturesmarketsareapartandparcelofaprogramforagriculturalliberalization.Manyagricultureeconomistsunderstandtheneedofliberalizationinthesector.Futuresmarketsareaninstrumentforachievingthatliberalization.WHATMAKESCOMMODITYTRADINGATTRACTIVE?

Agoodlow-riskportfoliodiversifierAhighlyliquidassetclass,actingasacounterweighttostocks,bondsandrealestate.

Lessvolatile,comparedwith,equitiesandbonds.18


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Investorscanleveragetheirinvestmentsandmultiplypotentialearnings.

Betterrisk-adjustedreturns.AgoodhedgeagainstanydownturninequitiesorbondsasthereisLittlecorrelationwithequityandbondmarkets.Highco-relationwithchangesininflation.Nosecuritiestransactiontaxlevied.

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TheNCDEXSystemEverymarkettransactionconsistsofthreecomponentsi.e.trading,clearingandsettlement.AbriefoverviewofhowtransactionshappenontheNCDEXsmarket.TRADINGThetradingsystemontheNCDEXprovidesafullyautomatedscreenbasedtradingforfuturesoncommoditiesonanationwidebasisaswellasonlinemonitoringandsurveillancemechanism.Itsupportsanorderdrivenmarketandprovidescompletetransparencyoftradingoperations.Ordermatchingisessentialonthebasisofcommodity,itsprice,timeandquantity.Allquantityfieldsareinunitsandpriceinrupees.Theexchangespecifiestheunitoftradingandthedeliveryunitforfuturescontractsonvariouscommodities.Theexchangenotifiestheregularlotsizeandticksizeforeachofthecontractstradedfromtimetotime.Whenanyorderentersthetradingsystem,itisanactiveorder.Ittriestofindsamatchontheothersideofthebook.Ifitfindsamatch,atradeisgenerated.Ifitdoesnotfindamatch,theorderbecomespassiveandgetsqueuedintherespectiveoutstandingorderbookinthesystem.Timestampingisdoneforeachtradeandprovidesthepossibilityforacompleteaudittrailifrequired.NCDEXtradescommodityfuturescontractshavingonemonth,twomonthandthreemonthexpirycycles.Allcontractsexpireonthe20thoftheexpirymonth.ThusaJanuaryexpirationcontractwouldexpireonthe20thofJanuaryandaFebruaryexpirycontractwouldceasetradingonthe20thofFebruary.Ifthe20thoftheexpirymonthisatradingholiday,thecontractsshallexpireontheprevioustrading

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day.Newcontractswillbeintroducedonthetradingdayfollowingtheexpiryofthenearmonthcontract.CLEARINGNationalSecuritiesClearingCorporationLimited(NSCCL)undertakesclearingoftradesexecutedontheNCDEX.ThesettlementguaranteefundismaintainedandmanagedbyNCDEX.Onlyclearingmembersincludingprofessionalclearingmembers(PCMs)onlyareentitledtoclearandsettlecontractsthroughtheclearinghouse.AtNCDEX,afterthetradinghoursontheexpirydate,basedontheavailableinformation,thematchingfordeliveriestakesplacefirstly,onthebasisoflocationsandthenrandomly,keepinginviewthefactorssuchasavailablecapacityofthevault/warehouse,commoditiesalreadydepositedanddematerializedandofferedfordeliveryetc.Matchingdonebythisprocessisbindingontheclearingmembers.Aftercompletionofthematchingprocess,clearingmembersareinformedofthedeliverable/receivablepositionsandtheunmatchedpositions.Unmatchedpositionshavetobesettledincash.Thecashsettlementisonlyfortheincrementalgain/lossasdeterminedonthebasisoffinalsettlementprice.SETTLEMENTFuturescontractshavetwotypesofsettlements,theMTMsettlementwhichhappensonacontinuousbasisattheendofeachday,andthefinalsettlementwhichhappensonthelasttradingdayofthefuturescontract.OntheNCDEX,dailyMTMsettlementandthefinalMTMsettlementinrespectofadmitteddealsinfuturescontractsarecashsettledbydebiting/creditingtheclearingaccountsofCMswiththerespectiveclearingbank.21


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AllpositionsofaCM,broughtforward,createdduringthedayorclosedoutduringtheday,aremarkettomarketatthedailysettlementpriceorthefinalsettlementpriceatthecloseoftradinghoursonaday.Onthedateofexpiry,thefinalsettlementpriceisthespotpriceontheexpiryday.Theresponsibilityofsettlementisonatradingcumclearingmemberforalltradesdoneonhisownaccountandhisclientstrades.Aprofessionalclearingmemberisresponsibleforsettlingalltheparticipantstrades,whichhehasconfirmedtotheexchange.Ontheexpirydateofafuturescontract,memberssubmitdeliveryinformationthroughdeliveryrequestwindowonthetrader

workstationsprovidedbyNCDEXforallopenpositionsforacommodityforallconstituentsindividually.NCDEXonreceiptofsuchinformationmatchestheinformationandarrivesatdeliverypositionforamemberforacommodity.Thesellerintendingtomakedeliverytakesthecommoditiestothedesignatedwarehouse.Thesecommoditieshavetobeassayedbytheexchangespecifiedassayer.Thecommoditieshavetomeetthecontractspecificationswithallowedvariances.Ifthecommoditiesmeetthespecifications,thewarehouseacceptsthem.Warehousethenensuresthatthereceiptsgetupdatedinthedepositorysystemgivingacreditinthedepositorselectronicaccount.Thesellerthegivestheinvoicetohisclearingmember,whowouldcourierthesametothebuyersclearingmember.Onanappointeddate,thebuyergoestothewarehouseandtakesphysicalpossessionofthecommodities.

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GoldIntroductionGoldisauniqueassetbasedonfewbasiccharacteristics.First,itisprimarilyamonetaryasset,andpartlyacommodity.Asmuchastwothirdsofgoldstotalaccumulatedholdingsrelatetostoreofvalueconsiderations.Holdingsinthiscategoryincludethecentralbankreserves,privateinvestments,andhighcaratagejewelleryboughtprimarilyindevelopingcountriesasavehicleforsavings.Thus,goldisprimarilyamonetaryasset.Lessthanonethirdofgoldstotalaccumulatedholdingscanbeconsideredacommodity,thejewelleryboughtinWesternmarketsforadornment,andgoldusedinindustry.Thedistinctionbetweengoldandcommoditiesisimportant.Goldhasmaintaineditsvalueinafter-inflationtermsoverthelongrun,whilecommoditieshavedeclined.Someanalystsliketothinkofgoldasacurrencywithoutacountry.Itisaninternationallyrecognizedassetthatisnotdependentuponanygovernmentspromisetopay.ThisisanimportantfeaturewhencomparinggoldtoconventionaldiversifierslikeT-billsorbonds,whichunlikegold,dohavecounter-partyrisk.Whatmakesgoldspecial?TimelessandVeryTimelyInvestmentGoldisaneffectivediversifieroldistheidealgiftGoldishighlyliquid23


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Goldrespondswhenyouneeditmost

MarketCharacteristicsThegoldmarketishighlyliquid.Goldheldbycentralbanks,othermajorinstitutions,andretailjewelleryisreinvestedinmarket.Duetolargestockofgold,againstitsdemand,itisarguedthatthecoredriveroftherealpriceofgoldisstockequilibriumratherthanflowequilibrium.Effectiveportfoliodiversifier:ThisphrasesummarizestheusefulnessofgoldintermsofModernPortfolioTheory,astrategyusedbymanyinvestmentmanagerstoday.Usingthisapproach,goldcanbeusedasaportfoliodiversifiertoimproveinvestmentperformance.Effectivediversificationduringstressperiods:Traditionalmethodofportfoliodiversificationoftenfailswhentheyaremostneeded,thatisduringfinancialstress(instability).Ontheseoccasions,thecorrelationsandvolatilitiesofreturnformostassetclass(includingtraditionaldiversifiers,suchasbondandalternativeassets)increase,thusreducingtheintendedcushioningeffectofthediversifiedportfolio.DemandandsupplyChinaproduced276metrictonsofgoldlastyear,equaltoabout9.7millionounces,saidLondonpreciousmetalsconsultancyGFMSLtd.That'sup12%fromtheyear-agoandrepresentedjustoverone-tenthoftheworld'ssupply.TherankingpushesSouthAfricaintosecondplace,thefirsttimethegoldgianthaslostitstoprankingsince1905.SouthAfrica,whoselate24


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19thcenturygoldrushledtothefoundingofminingheavyweightAngloAmericanPlcandishometoglobalproducersGoldFieldsLtdandAngloGoldAshantiLtd,sawitsproductiondecline8%to272metrictons.Indiaisworldlargestgoldconsumerwithanannualdemandof800tonnes.DemandandSupplyofGoldinIndia(intonnes)SupplyMineProductionNetProducerHedgingTotalminesupplyOfficialsectorsalesOldgoldScrapTotalSupplyDemandFabricationJewelleryIndustrial&DentalSubtotalofabovefabricationBar&coinretailinvestmentOtherretailinvestmentETFsandsimilarTotalDemandInferredInvestmentSource:GFMSLtd.

2006573-1404309330382651911163089-3113829-3

2007580-12945195262808568112680116-536827-19

%change152-13291831-680-

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IndianGoldJewelleryMarketPlain22caratjewelleryisthecoreofconsumptionespeciallyintheruralareas,wheregoldissoimportantinjudgingafamily'sstatusatamarriage.Abasicmarriagesetforabrideistwoearrings,onenosepin,onering,onenecklaceandtwobangles,allin22caratgoldandweighingupto200grams(6.2oz).Studded(i.e.gem-set)18caratjewelleryisincreasinglypopularinthecitiesandisestimatedtohaveused31tonnes(1millionoz)in2001.Medallions,charmsandsmallgiftitemsaccountforuptohalfofwhatislooselycalledjewellery.Theseitemsarepopularasgiftsatweddingsandotherfamilyevents.Goldthread,knownasJariusedinhighqualitysariswornatweddingsandspecialoccasionsrequiressomewhereintheregionof20tonnes(0.6moz)annually.Themarketishighlyfragmentedwithanestimated100,000workshopssupplyingover300,000retailers,mostlyfamily-owned,singleshopoperations.Theindustryisbeginningtobemodernisedwithlargefactories,installingthelatestequipment,incentressuchasMumbai,AhmadabadandBangalore.HallmarkingdoesnotexistinIndiaandunder-caratageis

commonplace.TheBureauofIndianStandardshasintroducedavoluntaryschemewhich,althoughnotyetwidelyused,isbecomingmorepopular.Theminimumlegalcaratageis9carat.Thenumberofretailjewelleryoutletshasincreasedgreatlysincetheabolitionofgoldcontrol,ashasthenumberofIndianspossessinggoldjewellery.26


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MCXContractSpecificationsofGold:GOLDNameofCommodityTickerSymbolTradingSystemTradingPeriodTradingSessionTRADINGTradingUnitPriceQuoteGoldGLDPURMUMKMCXTradingSystemMondaytoSaturdayMondaytoFriday:10:00a.m.to11:30p.m.Saturday:10:00a.m.to2:00p.m.1kgRs.Per10g,ex-Ahmedabad(inclusiveofalltaxesandleviesrelatingtoimportandcustomduty,butexcludingsalestax/VAT,anyotheradditionaltaxorsurchargeonsalestax,localtaxesandoctroi)10kgRe.1per10g(minimumpricemovement)3%4%Incaseofinitialvolatility,aspecialmarginatsuchpercentage(asdeemedfit),willbeimposedimmediatelyonbothbuyandsellsideinrespectofalloutstandingpositions,whichwillremaininforcefornext2days,afterwhichthespecialmarginwillberelaxed.Forindividualclient:2MTFormemberscollectivelyforallclients:6MTor15%ofthemarketposition,whicheverishigh1kg25%ofthevalueoftheopenpositionduringthedeliveryperiodAtdesignatedclearinghousefacilitiesofGroup4SecuritasatthesecentersandatadditionaldeliverycentersatChennai,NewDelhiandHyderabad.Compulsory1stto6thdayofthecontractexpirymonth.1stto6thdayofthecontractexpirymonth.Onanytenderdaysby6.00p.m.exceptSaturdays,SundaysandTradingHolidays.Markingofdeliverywillbedoneonthetenderdaysbasedontheintentionsreceivedfromthesellersafterthetradinghours.Onexpiryalltheopenpositionsshallbemarkedfordelivery.Deliverypay-inwillbeonE+1basis.By11.00a.m.onTenderday+1basisBy05.00p.m.onTenderday+1basis.

MaximumordersizeTickSizeDailypricelimitInitialMarginSpecialMargin

MaximumAllowableDELIVERYDeliveryunitDeliveryperiodmarginDeliverycenter(s)

DeliveryLogicSETTLEMENTPERIODTenderPeriodDeliveryPeriodPay-inofcommodities(deliverybysellermember)

Pay-inoffundsPay-outoffundsandcommodities(deliveryto

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buyermember)INFORMATIONRELATEDTODELIVERYDeliveryLogicCompulsoryDelivery.Anysellerhavingopenpositionontheexpirydatefailstodeliverthenthepenaltyasperthepenalprovisionwillbeimposedtothedefaultingseller.ModeofCommunicationFaxorCourierTenderPeriodMargin5%incrementalmarginforlast5daysonalloutstandingpositions.Suchmarginwillbeadditiontoinitial,additionalandspecialmarginasapplicable.Marginduringdelivery25%onthemarkedquantity.periodExemptionfrommarginMarginisexemptedonreceiptofdocumentaryduringtenderanddeliveryevidence(viz.,WarehouseReceiptandQualityperiodCertificate)oftenderingdeliverywiththeExchangeduringtenderdays.Deliveryorderrate(DOR)Settlement/closingpriceontherespectivetenderdaysexceptonexpirydate.OnexpirydatethedeliveryorderrateshallbetheDueDateRate(DDR)andnottheclosingprice.PenalProvisionApenaltyof2.5%ofDORwillbeimposedondefaultingbuyer/selleroutofwhich2%willbecreditedtoIPFand0.5%willbecreditedtothecounterparty.Additionally,4%ofDORasareplacementcostwillbechargedfromdefaultingbuyer/selleroutofwhich90%willbegiventothecounterpartyand10%willberetainedbytheExchangeasadministrativeexpenses.DeliveryCentersAhmedabadandMumbaiatdesignatedClearingHousefacilitiesofGroup4SecuritasatthesecentersandatadditionaldeliverycentersatChennai,NewDelhiandHyderabadDeliverablegradeofThesellingmemberstenderingdeliverywillhaveunderlyingcommoditytheoptionofdeliveringsuchgradesasperthecontractspecifications.ThebuyerhasnooptiontoselectaparticulargradeandthedeliveryofferedbythesellerandallocationbytheExchangeshallbebindingonhim.VerificationbytheBuyerAtthetimeoftakingdelivery,thebuyercanatthetimeofreleaseofcheck

hisdeliveryinfrontofGroup4personnel.deliveryIfheissatisfiedwiththequantity,weightandqualityofmaterial,thenhewillissuereceiptofthemetalsinstantly.Ifheisnotsatisfiedwiththemetal,hecaninsistforassayingbyanyoftheapprovedassayersavailableatthatcenter.Ifthebuyerchoosesforassaying,Group4personwillcarrythegoodstotheassayersfacilities,getitassayedandbringitbacktoGroup4facilitiesalongwithassayerscertificate.Iftheassayers28


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ValidationProcess

DeliveryProcess

certificatediffersfromthecertificatesubmittedbythesellerinrespectofqualityorweightmaterially,thenthebuyerandsellerhavetomutuallynegotiatethefinalsettlementproceedswithin1dayfromreceiptofassayersreport,howeveriftheydonotagreeonanymutuallyacceptableamountwithin1day,thentheExchangewillsendthegoodstoasecondassayerandinthatcase,thereportreceivedfromsuchassayerwillbefinalandbindingonbothbuyerandseller.ThecostoffirstassayingaswellascostoftransportationfromGroup4toassayersfacilitiestoandfrowillbebornbythebuyer,whilethecostofsecondassaying,ifany,willbeequallydividedbetweenthebuyerandseller.Thevaultchargesduringsuchperiodoffirstandsecondassaying,ifany,willbebornbyboththebuyersandsellersequally.Ifthebuyerdoesnotoptforassayingatthetimeofliftingdelivery,thenhewillnothaveanyfurtherrecoursetochallengethequantityorqualitysubsequentlyanditwillbeassumedthathehasreceivedthequantityandqualityasperthebillmadebytheseller.Onreceiptofdelivery,theGroup4personnelwilldothefollowingvalidations:a.whetherthepersoncarryingGoldisthedesignatedclearingagentofthemember.b.whetherthesellingmemberisthebonafiedmemberoftheExchange.c.whetherthequantitybeingdeliveredisfromExchangeapprovedrefineryd.whethertheserialnumbersofallthebarsismentionedinthepackinglistprovided.e.whethertheoriginalcertificatesareaccompaniedwiththeGoldBarsAnyothervalidation

checks,astheymaydesire.Incaseanyoftheabovevalidationfails,theGroup4SecuritaswillcontacttheExchangeofficeandtakeanyfurtheraction,onlyasperinstructionsreceivedfromtheExchangeinwriting.Ifallvalidationsarethrough,thentheGroup4SecuritaspersonnelwillputtheGoldinthevault.ThenthecustodianofGroup4willcutaseriallynumberedGroup4receipt(intriplicateconsistingofWhite,PinkandYellowslips),getthesignatureofthesellersclearingagentandsigningthesameforauthorization,handoverthePinksliptosellersclearingagent,sendbycourierthethirdcopy(YellowColourslip)whileretainingtheWhitefortherecordsofGroup4Securitas.Group4in29


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QualityAdjustment

ProcedureoftakingdeliveryfromtheVault

Taxes,duties,cessandlevies

Endorsementofdeliveryorder

frontofthesellingmembersclearingagentwilldepositthesaidmetalintotheirvault.Thepriceofgoldisonthebasisof995purity.Incaseasellerdelivers999purity,hewouldgetapremium.Insuchcase,thesaleproceedswillbecalculatedbywayofdeliveryorderrate*999/995Forthepurposeoftakingdeliveryofgoodsfullyorpartially,theMembershallsendtotheExchangeanAuthorityletteronhisletterhead,authorisingarepresentativeonhisbehalftotakethedelivery.TheAuthoritylettersentbytheMembershallconsistofthefollowingdetails:a.Nameoftheauthorisedrepresentative.b.NameoftheCommodityalongwithquantity.c.NameoftheVaultalongwiththelocation.d.Signatureoftheauthorisedrepresentative.e.ProofofIdentityviz.PANcard,drivinglicense,ElectionID.f.PhotoidentityproofdulyattestedbytheMember.Theabove-mentioneddetailsarerequiredtobesenttotheExchange.OncetheExchangereceivestheabove-mentioneddetails,theExchangewillsendDeliveryOrder(DO)totheVaultauthoritiesdirectly.BasedontheDeliveryOrderreceived,theVaultwillissuetherequestedquantitytotheauthorisedrepresentativewhohastopresenthimselfpersonallyattheVaultalongwiththerequisitephotoi

dentityproofinoriginal,thecopyofwhichwassent/communicatedtotheExchangebyitsMember.TheVaultofficialswill,uponfinalscrutiny/checkingoftheidentity,delivergoodstotherepresentativeoftheMember.TheVaultofficialsincaseofanydiscrepancyordoubtoranyotherreasonmayrefusetoissuethegoodstotherepresentativeundertheintimationtotheExchange.Thedeliverygiventotherepresentativeshallbefinal&bindingtotheMemberatalltimes.Ex-Ahmedabad.Inclusiveofallcharges/leviesrelatingtoimportduty,customstobebornebySeller.ButexcludingSalesTax/VAT,anyotheradditionaltaxorsurchargeonsalestax,localtaxesandoctroitobebornebytheBuyer.ThebuyermembercanendorsedeliveryordertoaclientoranythirdpartywithfulldisclosuregiventotheExchange.Responsibilityfor30


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contractualliabilitywouldbewiththeoriginalassignee.Vault,InsuranceandBornebythesellertillthedateofpay-outofTransportationchargesdeliveryandthebuyerafterthedateofpay-out.ExtensionofdeliveryAsperExchangedecisionduetoaforcemajeureperiodorotherwise.Duedaterate(DDR)DDRiscalculatedon5thdayofthecontractmonth.Thisiscalculatedbywayoftakingsimpleaverageoflast5daysofthespotmarketofAhmedabad.LegalobligationThememberswillprovideappropriatetaxformswhereverrequiredasperlawandascustomaryandneitheroftheparties(sellermemberandbuyermember)willunreasonablyrefusetodoso.ApplicabilityofBusinessThegeneralprovisionsofByelaws,rulesandRulesBusinessRulesoftheExchangeanddecisionstakenbyForwardMarketsCommission,BoardofDirectorsandExecutiveCommitteeoftheExchangeinrespectofmattersspecifiedabovewillformandintegralpartofthiscontract.TheExchangeorFMCasthecasemaybefurtherprescribeadditionalmeasuresrelatingtodeliveryprocedures,warehousing,qualitycertification,margining,riskmanagementfromtimetotime.(TheinterpretationorclarificationgivenbytheExchangeonanytermsofthiscontractshallbefinalandbindingonthemembersandothers.)STEPSTOBEFOLLOWEDFORDELIVERYIntentiontotakedeliveryOnanytenderdaysby6.00p.m.bybuyersDisseminationofTheExchangewillinformmembersthroughTWSinformationontenderedregardingtendernoticeanddeliveryintentionsofdeliveryandbuyersthesellersmembersandthebuyersrespectivelyinterestby7.00p.m.ontherespectivetenderdaysandonSaturdaysby1:00p.m.EvidenceofstocksinAtthetimeofissuingdeliveryorder,theMemberpossessionmustsatisfytheExchangethatheholdsstocksofthequantityandqualityspecifiedintheDeliveryOrderatthedeclareddeliverycenterby

producingwarehousereceipt.TendernoticebysellerThesellerwillissuetendernoticealongwithevidenceofdeliverytotheExchangeinaspecifiedformatby6:00p.m.andonSaturdaysby12:00noon.BuyersobligationThebuyershallnotrefusetakingdeliveryandsuchrefusalwillentertainpenaltyasperthepenalprovision.AllocationofdeliveryAspertheclosingpriceontherespectivetenderdays.

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Source:MCXGoldReport1

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FrequentlyAskedQuestionsonGoldQ1.WhatisGoldandwhyisitschemicalsymbolAu?Goldisararemetallicelementwithameltingpointof1064degreescentigradeandaboilingpointof2808degreescentigrade.Itschemicalsymbol,Au,isshortfortheLatinwordforgold,'Aurum',whichliterallymeans'GlowingDawn'.Ithasseveralpropertiesthathavemadeitveryusefultomankindovertheyears,notablyitsexcellentconductivepropertiesanditsinabilitytoreactwithwateroroxygen.Q2.WheredoesthewordGoldcomefrom?ThewordgoldappearstobederivedfromtheIndo-Europeanroot'yellow',reflectingoneofthemostobviouspropertiesofgold.Thisisreflectedinthesimilaritiesofthewordgoldinvariouslanguages:Gold(English),Gold(German),Guld(Danish),Gulden(Dutch),Goud(Afrikaans),Gull(Norwegian)andKulta(Finnish).Q3.Howmuchgoldisthereintheworld?Attheendof2001,itisestimatedthatallthegoldeverminedamountstoabout145,000tonnes.Q4.Whyisgoldmeasuredincarats?ThisstemsbacktoancienttimesintheMediterranean/MiddleEast,whenacaratbecameusedasameasureofthepurityofgoldalloys(seenextQuestion5).Thepurityofgoldisnowmeasuredalsointermsiffineness,i.e.partsperthousand.Thus18caratsis18/24thof1000parts=750fineness.Q5.WhatisaCarat?ACarat(KaratinUSA&Germany)wasoriginallyaunitofmass(weight)basedontheCarobseedorbeanusedbyancientmerchantsintheMiddleEast.TheCarobseedisfromtheCaroborlocustbeantree.Thecaratisstillusedassuchfortheweightofgemstones(1caratisabout200mg).Forgold,ithascometobeusedformeasuringthepurityofgoldwherepuregold33


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isdefinedas24carats.Howandwhenthischangeoccurredisnotclear.ItdoesinvolvetheRomanswhoalsousedthenameSiliquaGraeca(KerationinGreek,QiratinArabic,nowCaratinmoderntimes)forthebeanoftheCarobtree.TheRomansalsousedthenameSiliquaforasmallsilvercoin,whichwasone-twentyfourthofthegoldensolidusofConstantine.Thislatterhadamassofabout4.54grammes,sotheSiliquawasapproximatelyequivalentinvaluetothemassof1KerationorSiliquaGraecaofgold,i.ethevalueof1/24thofaSolidusisabout1Kerationofgold,i.e1carat.Q6.Whoownsmostgold?Ifwetakenationalgoldreserves,thenmostgoldisownedbytheUSAfollowedbyGermanyandtheIMF.Ifweincludejewelleryownership,thenIndiaisthelargestrepositoryofgoldintermsoftotalgoldwithinthenationalboundaries.Intermsofpersonalownership,itisnotknownwhoownsthemost,butispossiblyamemberofarulingroyalfamilyintheEast.Q7.Ifallthegoldwaslaidaroundtheworld,howfarwoulditstretch?Ifwemakeallthegoldeverproducedintoathinwireof5microns(millionthsofametre)diameterthefinestonecandrawagoldwire,thenallthegoldwouldstretcharoundthecircumferenceoftheworldanastounding72milliontimesapproximately!Q8.Howmuchnewgoldisproducedperyear?In2001,mineproductionamountedto2,604tonnesor67%oftotalgolddemandinthatyear.Goldproductionhasbeengrowingforyears,buttherealaccelerationtookplaceafterthelate1970s,whenoutputwasintheregionof1,500tpa.Thisyearoutputwillfallshortofproductionlevelsin2001.Thisispartlyforspecificoperationalreasonsatsomeofthelargermines(GrasbergandPorgera),alongwithlowergradesatsomeoftheoperationsinNevada.Thereductioninexplorationanddevelopmentexpenditureoverthepastfiveyearsisleadinganumber

ofanalyststosuggestthat,withotheroperationsnearingtheendoftheirlives,globalproductionislikelytodropslightlyoverthenexttwotothreeyearssubjectalwaysofcoursetoprice.

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Q9.Howmuchdoesitcosttorunagoldmine?Goldminingisverycapitalintensive,particularlyinthedeepminesofSouthAfricawhereminingiscarriedoutatdepthsof3000metersandproposalstomineevendeeperat4,500metersarebeingpursued.TypicalminingcostsareUS$238/troyouncegoldaveragebutthesecanvarywidelydependingonminingtypeandorequality.Richeroresminedatthesurface(opencastmining)isconsiderablycheapertominethanundergroundminingatdepth.Suchminingrequiresexpensivesinkingofshaftsdeepintotheground.Q10.Howdoesagoldminework?Thegold-containingorehastobedugfromthesurfaceorblastedfromtherockfaceunderground.Thisisthenhauledtothesurfaceandmilledtoreleasethegold.Thegoldisthenseparatedfromtherock(gangue)bytechniquessuchasflotation,smeltedtoagold-richdorandcastintobars.ThesearethenrefinedtogoldbarsbytheMillerchlorinationprocesstoapurityof99.5%.Ifhigherpurityisneededorplatinumgroupmetalcontaminantsarepresent,thisgoldisfurtherrefinedbytheWohlwillelectrolyticprocessto99.9%purity.Minetailingscontaininglowamountsofgoldmaybetreatedwithcyanidetodissolvethegoldandthisisthenextractedbythecarboninpulptechniquebeforesmeltingandrefining.Q12.Howbigisatonneofgold?GoldistraditionallyweighedinTroyOunces(31.1035grammes).Withthedensityofgoldat19.32g/cm3,atroyounceofgoldwouldhaveavolumeof1.64cm3.Atonneofgoldwouldthereforehaveavolumeof51,760cm3,whichwouldbeequivalenttoacubeofside37.27cm(Approx.1'3'').

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GoldTerminologyForthepurposeofthisstandard,thefollowingdefinitionsshallapply:Assaying:Themethodofaccuratedeterminationofthegoldcontentofthesampleexpressedinpartsperthousand(%).Carat:One-twentyfourthpartbymassofthemetallicelementgold.Fineness:Theratiobetweenthemassofgoldcontentandthetotalmassexpressedinpartsperthousand(%).FindGold:Itisgoldhavingfineness999partsperthousand(5)andabovewithoutanynegativetolerance.Gold:Themetallicelementgold,freefromanyotherelement.StandardGold:Goldhavingfineness995partsperthousand(%)andabovewithoutanynegativetolerance.Grain:Oneoftheearliestweightunitsusedformeasuringgold.Onegrainisequivalentto0.0648grams.Hallmark:Mark,ormarks,whichindicatetheproducerofagoldbaranditsnumber,fineness,etc.Karat:Unitoffineness,scaledfromoneto24.24karatgold(orpuregold)hasatleast999partspuregoldperthousand;18-karathas750,partspuregoldand250partsalloy,etc.KiloBar:Abarweighingonekilogramapproximately32.1507troyounces.LegalTender:Thecoinorcurrencywhichthenationalmonetaryauthoritydeclarestobeuniversallyacceptableasamediumofexchange;acceptableforinstanceinthedischargeofdebts.Liquidity:Thequalitypossessedbyafinancialinstrumentofbeingreadilyconvertibleintocashwithoutsignificantlossofvalue.TroyOunce:Aunitofweight,equaltoabout1.1avoirdupois(ordinary)ounces.Thewordouncewhenappliedtogoldreferstoatroyounce.1troyounceisequivalentto31.1034768grams.

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CONCLUSIONAfteralmosttwoyearsthatcommoditytradingisfindingfavourwithIndianinvestorsandisbeenseenasaseparateassetclasswithgoodgrowthopportunities.Fordiversificationofportfoliobeyondshares,fixeddeposits

andmutualfunds,commoditytradingoffersagoodoptionforlong-terminvestorsandarbitrageursandspeculators.And,now,withdailyglobal

volumesincommoditytradingtouchingthreetimesthatofequities,tradingincommoditiescannotbeignoredbyIndianinvestors.Onlinecommodityexchangesneedtorevampcertainlawsgoverningfuturesincommoditiestomakethemarketsmoreattractive.Thenationalmulti-

commodityexchangeshaveunitedlyproposedtothegovernmentthatinviewofthegrowthofthecommoditiesmarket,foreigninstitutionalinvestorsshouldbegiventhego-aheadtoinvestincommodityfuturesinIndia.willdeepenandbroadbasethecommodityfuturesmarket.Theirentry

Asamatterof

fact,derivativeinstruments,suchasfutures,canhelpIndiabecomeaglobaltradinghubforselectcommodities.CommoditytradinginIndiaispoisedforabigtake-offinIndiaonthebackoffactorslikeglobaleconomicrecoveryandincreasingdemandfromChinaforcommodities.ConsideringthehugevolatilitywitnessedintheequitymarketsrecentlywiththeSensextouching21000levelcommodit

iescouldaddtherequiredzingtoinvestors'portfolio.Therefore,itwon'tbelongbeforethe

marketseestheemergenceofacompletelyredefinedsetofretailinvestors.

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Bibliographywww.mcxindia.comwww.indiamba.comwww.commodityindia.comwww.business.mapsofindia.comwww.bseindia.comwww.ncdex.comwww.sebi.gov.in,SEBIBulletinwww.indiaexpress.comwww.nmce.comwww.nbotind.orgwww.gold.org

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