A Statistical Study of Price of Gold

Abstract

Gold has long been considered one of the most precious metals, and its value has been used as the standard for many currencies (known as the gold standard) in history. Ancient India accumulated gold through trade of Indian spices with Roman Empire and by gold mining operations, predominantly in the regions of Hatti and Kolar of modern-day Karnataka. 1. There has been drastic increase in the prices of gold since 2001. Gold prices have been increased by 90% during last 10 years. 2. The Bank of India has one of the largest stores of gold in the world. India is the second largest consumer of gold in the world and is one of the most reliable drivers of global demand. Gold accounts for nearly 5.5% of the total foreign reserve holdings of India. India’s festival and wedding season, which runs from October to December, has historically been a huge boon to gold trade. 3. Gold has always been used as a monetary standard. Gold has a profound impact on the value of world currencies. Even though the gold standard has been abandoned, gold as a commodity can act as a substitute for fiat currencies and be used as an effective hedge against inflation. There is no doubt that gold will continue to play an integral role in the foreign exchange markets. Gold consumption observed a sharp acceleration during the 1990s amidst liberalization of gold import policy, strong economic growth and favourable movements in gold prices. Gold is now being used as an alternative for dollar since its collapse. Monetary and Non- Monetary demand for gold is steeply rising. It has been demanded by individual buyer, institutional buyer as well as he Countries too.