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Abstract

For ages gold has fascinated mankind. It has not only been an adornment but also used as a currency for centuries. Even today, it has continued to baffle economists, policymakers, and laymen alike. The demand for gold in many countries is driven by jewellery. Though gold has ceased to be a currency for a long time, most central banks continue to issue currencies backed by a certain percentage of gold. The lack of co-relation between gold and other economic indicators and currencies has made gold a safe avenue for investment in spite of its volatility. The case attempts to discuss the following points: (1) gold''s role as a monetary unit; (2) impact of the Washington Agreement on gold sales and the gold leasing market; (3) the gold market, its structure, working and constituents; (4) relation between gold and currencies; (5) relation between gold and economic indicators like gross domestic product (GDP), inflation, interest rates, etc; and (6) gold as an investment tool.
Location:
Industry:
Other setting(s):
2004-2005

About

Abstract

For ages gold has fascinated mankind. It has not only been an adornment but also used as a currency for centuries. Even today, it has continued to baffle economists, policymakers, and laymen alike. The demand for gold in many countries is driven by jewellery. Though gold has ceased to be a currency for a long time, most central banks continue to issue currencies backed by a certain percentage of gold. The lack of co-relation between gold and other economic indicators and currencies has made gold a safe avenue for investment in spite of its volatility. The case attempts to discuss the following points: (1) gold''s role as a monetary unit; (2) impact of the Washington Agreement on gold sales and the gold leasing market; (3) the gold market, its structure, working and constituents; (4) relation between gold and currencies; (5) relation between gold and economic indicators like gross domestic product (GDP), inflation, interest rates, etc; and (6) gold as an investment tool.

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Location:
Industry:
Other setting(s):
2004-2005

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