...Journal of Advanced Management Science Vol. 2, No. 1, March 2014 The Determinants of Gold Prices in Malaysia Siti Nurulhuda Ibrahim, Nurul Izzat Kamaruddin, and Rahayu Hasan Universiti Teknologi MARA, Bandaraya Melaka, Malaysia Email: {Sitinur304, nrl_izzat, rahayuhasan} @bdrmelaka.uitm.edu.my Abstract—This paper analysed factors that affecting the prices of gold in Malaysia. The study used Multiple Linear Regression Model to determined significant relationship between dependent and independent variables, covering data for 10 years period which are from 2003 until 2012. The researcher used three independent variables that affect the prices of gold which are crude oil prices, inflation rates and exchange rates. The empirical results have found there is negatively significant relationship between inflation rates and exchange rates on gold prices, while a crude oil price is positively significant. The results of the study are valuable for both academic and investor. Index Terms—determinant, gold prices, crude oil prices, inflation rates, exchange rates price and sell it at high price later on. Thus, this is why the factors that affect the gold price must be determined so that people may estimate the timing to buy, hold or sell the gold. This study is made to seek the proofs for the possible factors that affect the gold price in Malaysia. From this research, the most important or most influence factor can also be determined. Simply put, the findings for this research will bring benefit...
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...in the price of gold. They used monthly gold price data January 1976 to December 1999 and applied Error Correction Model. If set of conditions have satisfied, the price of gold will rise over time at the general rate of inflation. Ranson (2005) tried to find out role of gold and oil as predictor of inflation. He found that gold price is more reliable barometer of the inflation than oil price because the effect on official inflation statistics, is reliably indicated by how far policy actions have allowed the price of gold to rise. Worthington and Pahlavani (2006) tested for the presence of a stable long-run relationship between the monthly price of gold and inflation in the United states from 1945 to 2006 and from 1973 to 2006. By applying unit root and modified cointegration test, they provided strong evidence of a cointegrating relationship between inflation and gold. This is in line with the view that gold can serve as an effective inflationary hedge. Levin and Wright (2006) tried to find out short-run and long-run determinants of the price of gold for the period January 1976 to August 2005. By using cointegration techniques they confirmed that the long-run price of gold moves only to the US price level, while short-run movements in the gold price were related to exchange rate, gold lease rate , gold’s beta, US inflation , US inflation volatility, credit risk and political uncertainty. Tully & Lucey (2007) investigated the relationship between gold prices and exchange...
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...and Applied Scientific Research www.textroad.com Factors Affecting the Price of Gold in Malaysia Hanif Zakaria, Nabilah Abdul Shukur, Salwani Affandi, Wan Mansor Wan Mahmood Faculty of Business Management Universiti Teknologi MARA, Dungun, Terengganu, Malaysia Received: March 9, 2015 Accepted: June 16, 2015 ABSTRACT Gold is a precious metal which serves as both financial and real assets. The value of gold in the society goes more than just economic, as it is also treasured as a storage and display of mammon and culture.Of late, the price of gold is not stable in which it tends to oscillatecontingent on the economic condition. In the long-run, its prices keep increasing due to high demand and inadequate supply worldwide. However, in the short-run, its price seems to be volatile due to various potential reasons. Therefore, this study was conducted to determine the factors influencing gold prices in Malaysia. In order to achieve the objective, Stata software was used to assess the prospective relationships between the gold prices as the dependent variable and the inflation rate, interest rate and exchange rate as independent variablesby using Pooled Ordinary Least Squares (POLS) methodology. The monthly data employed in this study spans across a 14 years period from year 2000 until 2013. The results revealed that the rates of inflation, exchange and interest were significantly related with gold prices in Malaysia in different magnitude and direction.It is...
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...Michael Hill International Limited (MHI) | Individual Case Report: External Analysis | Table of Contents Report Purpose 3 Company Overview 3 Background of Michael Hill International Limited 3 Environmental factors affecting the Jewellery Industry & Michael Hill International Ltd 4 Industry Analysis 10 Strategic issues and problems for the Jewellery industry 10 Future of the industry 12 Company Analysis 12 Competitor analysis 14 Conclusion 14 References 18 Report Purpose To conduct an external analysis on Michael Hill International limited (MHI) to establish whether the firm is in a favourable industry and ultimately their position among their rivals. It will consist of industry analysis including; key industrial driving forces, potential emerging trends affecting the macro-environment of the industry that might transfer onto Michael Hill International Ltd as well as, their competitors in the industry. The main strategic issues for the industry will be identified and their implications on Michael Hill International Ltd will be outlined/described. Company Overview Background of Michael Hill International Limited In 1979, Michael Hill opened his first signature jewellery store (Michael Hill Jewellery) in Whangarei and entered into the New Zealand jewellery industry. Fast-forward 33 years, Michael Hill International Limited together with its 13 subsidiaries, has become one of the largest manufacturers, wholesalers and retailers...
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...| XOM | $86.67 | 3/5/2012 | 1:29pm | GOOG | $614.70 | 3/5/2012 | 1:28pm | F | $12.48 | 3/5/2012 | 1:29pm | JNJ | $64.67 | 3/5/2012 | 1:28pm | The table below now shows the results of how the stock performed from 3/5/12 to 3/16/12: We will discuss some stock analysis and the gain/loss later in this report. | Current | Date | Time | AMZN | 185.05 | 3/16/2012 | 1:28pm | XOM | 86.44 | 3/16/2012 | 1:29pm | GOOG | 625.4 | 3/16/2012 | 1:28pm | F | $12.51 | 3/16/2012 | 1:29pm | JNJ | $65.12 | 3/16/2012 | 1:28pm | Other than having five stocks, we have a put option for Procter & Gamble and a futures contract of Gold. b) Analyzing the futures contract of gold we bought at the beginning, March 2, 2012, it closed at $1,698 which meant our initial value was at $10,125 with a margin call at $7500. If it drops below that price then we would have to borrow money to bring it back up to the initial margin. On March 3, 2012, gold closed at $1702 resulting in a profit of 4 dollars per share increasing our profit by $400 and the resulting value of our gold became $10,525 On March 4, 2012, gold jumped another $3 resulting in a profit of $300 and an overall value of $10,825. On March 5, 2012, Gold raised $7 resulting in a profit of $700 and the value became $11,525. On March 6, the value dropped $5 dollars...
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... Arpit Dhiman (14109006) Dhruva Gupta (14109010) Branch-Production Contents Pg 3…………………………………………………………….Abstract Pg 4……………………………………………………………..What is inflation? Pg 4 – 6………………………………………………………….Types of inflation Pg 6 -7 ………………………………………………………….Causes of inflation Pg 8………………………………Measurement of inflation and issues encountered Pg 10-11……………………………………………………………Factors affecting demand Pg12 - 13……………………………………………………………..Factors affecting supply Pg 14-15………………………………………How Can Government Control Inflation? Pg 16-19…………………………………………………Effect of inflation on various sectors Pg20-21…………………………………………………………..Literature review Pg22-23………………………………………………Needs, Objectives and Methodology Pg24……………………………………………………………..Data Analysis Pg24-25………………………………………………Advantages/Disadvantages of inflation Pg25-26………………………………………………………….Elasticity of Demand Pg27-28……………………………Classification of goods on basis of Wants...
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...COLLEGE ECONOMICS DEPARTMENT MS BUSINESS ECONOMICS ECONOMETRICS PROJECT REGRESSION ANALYSIS: FACTORS AFFECTING TIME DEPOSITS IN TURKEY ILYAS DOGAN NEW YORK DECEMBER-2010 Abstract This paper examines the factors that impact the time deposits in Turkey by using the linear regression analysis. There are lots of elements which affect the time deposits. In my regression model, I used some of them such as; exchange rate, interest rate, consumer price index, wholesale price index and gold prices. These are my independent variables whereas time deposit is my dependent variable. I also adjusted the US Dollar/ Turkish Lira exchange rate because Turkey started using The New Turkish Lira by dropping 6 zeros from the currency Turkish Lira on 01.01.2005. The reference of all variables is http://evds.tcmb.gov.tr/ Meanings of the variables as follows; Time Deposit( TD): Annually equivalent of monthly time deposits traded in banks. Exchange Rate (ET): New Turkish Lira equivalent of the average dollar exchange rate during the year. Interest Rate (IT): Annually equivalent of weighted 12-month term deposits interest rate. Wholesale Price Index (WPI): Annually percentage changes in wholesale price index. Consumer Price Index (CPI ) : : Annually percentage changes in consumer price index. Gold Price (GP) : New Turkish Lira equivalent of the average gold price during the year. Variables are monthly data which contains 60 months from January...
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... | | |15-06-‘11 | | | | | | |17-06-‘11 | | |Partial And General Equilibrium | | | | | | | Three Economic Problems | | | | | | |Demand & Supply Analysis...
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...3: PRICE TRENDS 12 2005-2009: An overview 14 2010-11: The Highs 15 2012-13: The Lows 16 The Future 17 Conclusion 18 Bibliography 19 Books 19 Articles 19 Websites 19 INTRODUCTION Silver is one of the most versatile metals available. In historical times it was used as a currency. Used as both an industrial metal and a hard asset, it plays double duty in the commodities market. It has also become an investment vehicle which provides a safe haven from the unpredictable stocks and bonds. Trading it and predicting its price is a careful balancing act between what consumers need and what the currency market demands. The objective of the paper is to study the demand and supply mechanism for the silver market. Due to the dynamic nature of the market, the demand and supply forces keep changing due to various reasons; the author has tried to find the same. The author has further tried to study the implications of the demand and supply on the price trends. The research and analysis primarily gives a broad description of the current trends in the market for silver. The paper examines only the spot prices and the study does not include future market. The paper tries to examine how India is a part of the global market. After establishing a link between international and domestic silver market, the paper looks at the price trends beginning from 2005. The paper examines the reason for rise and fall of the prices and analyses the trends to predict how the prices can...
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...feel free to contact us at bat@bloomberginstitute.com. Table of Contents Introduction Test Overview Sample Questions Scoring Test Overview The BAT aids employers in identifying and screening students who wish to pursue a career in business and finance. Test takers should have a general understanding of and familiarity with current events in business, finance, and economics. However, we are not assessing knowledge: we are assessing a person’s aptitude to be successful in these fields, regardless of background. 2 Hours 8 Sections 100 Questions Chart and Graph Analysis 12% News Analysis 12% Global Markets 14% Economics 12% Investment Banking 12% Math 14% Financial Statements Analysis 12% Analytical Reasoning 12% The following pages outline the different sections of the BAT and the types of questions you can expect to see. Test Overview Exam Sections News Analysis (12 questions) This section of the BAT is designed to assess your ability to use information from news...
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...Executive Summary ___________________________________________________________________________ The foreign exchange market does not have a physical market place called the foreign exchange market. It is a mechanism through which one country's currency can be exchange i.e. bought or sold for the currency of another country. The foreign exchange market does not have any geographic location. The market comprises of all foreign exchange traders who are connected to each other through out the world. They deal with each other through telephones, telexes and electronic systems. The foreign exchange market operates twenty four hours a day during the business week; the only time it is silent is after the New York market closes on Friday afternoon and before the Sydney market opens on Monday morning (which would be Sunday evening New York time). In the aftermath of the Asian crisis, which curbed and restricted offshore trading in regional currencies, most derivatives markets in Asia are still in their infancy. Financial institutions trying to introduce or transplant products from mature markets to those that are lesser developed are meeting with limited success. The RBI has ushered rupee derivatives trading into the country: it has formally allowed banks and corporate to hedge against interest rate risks through the use of interest rate swaps (IRS) and forward rate agreement (FRA). According to the guidelines issued by RBI there will be no restriction on the tenure and size of the...
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... In examining the demand and supply of the said product, statistics were researched to gain a better understanding of the reasoning behind such behaviour, and the opportunity cost attached. Information attained by Apple showed that the iphone 5 demands outstrips supply, as pre-orders shattered previous records, and some customers having to wait over a month to acquire the device. More than 2 million phones were bought in the first 24hours after apple took pre-orders. Customers lined up at the 356 retail stores across the US for days in advance. Why then, even after the fact that the phone is readily available across the US, would consumers behave in such a manner? It would seem that the actual supply of the iphone was limited, hence affecting the demand for the product. The features of the phone were advertised to be not significantly different from the phones previous model. The significant interest of the product was as a result of pent up demand, as some customers had been holding off their purchases for months before the release date. In-store checks indicated a very strong demand for the product, as apple experienced strong up-grade activity. Apple has relied on customer adoption in order to stay ahead of rivals such as Google, Samsung and Nokia. We must also consider the opportunity cost. The basic economic problem facing consumers and economies on a whole is that of limited...
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.../ Forex / Crude Oil on Gold Vikram K. Joshi A b s t r a c t Gold which traditionally viewed as a safe haven in uncertain times, hit record highs in post-2000. The current bull-run in gold has lasted for a decade from ` 4473.60 per 10 gms in 2000-01 to record highs of ` 14,578.08 per 10 gms in 2009-10. B e f o r e 2 0 0 0 , t h e d e m a n d f o r g o l d w a s e l a s t i c . H o w e v e r, n o w t h e gold market seems entirely inelastic, as the appetite for the metal is high even a s t h e p r i c e s m o v e h i g h e r. I n t h i s p a p e r t h e e f f o r t s a r e m a d e t o a n a l y z e t h e reasons for rising gold demand and prices in Indian market and its relationship w i t h t h e f o r e x m a r k e t , t h e f l u c t u a t i o n s i n t h e s t o c k m a r k e t and t h e s o a r i n g crude oil price in the international market. Key words: Stock Market, BSE SENSEX, Gold prices, FOREX Market, Crude oil prices. dwells on the rise in price of the yellow metal. I Dr. Vikram K. Joshi, Asst Professor, Dr. Ambedkar Institute of Management Studies and Research Deekshabhoomi, Nagpur. Email: vikramkjoshi@gmail.com n India, gold standard was treated as one of the most important measures or instruments of monetary system. The gold standard ceased to function a long time back but gold bullion still retains some of its old halo. Gold bullion still figures in the discussions of the monetary system. Gold bullion is prized even...
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...Competitive Organization and Product in Organization ECO/365 Market Analysis and Recommendations Team B is a strategic planning group assigned to complete a competitive market analysis of the smart phone industry in preparation for our company’s potential new smart phone product. This paper is intended to summarize the research findings on the current leading competitor in the market, the iPhone s5 and our recommendations on how to successfully compete and maximize profit in the smart phone market. History of Apple Apple Computers was founded in April 1976 by Steven Jobs and Steven Wozniak. The company built computers and operating systems that were revolutionary for the industry. The company has had some competition, and therefore has had some ups and downs financially. Top management in the company has changed over the years and the company had difficulty competing with other computer companies. However, in the late 90s and early 00s the company had an increase in profits because of innovative products. In 2001, the company introduced the iPod. This little device was just a small music player. It played and stored music files that the customer could download on the Internet. Apple Inc. dropped the “computer” out of its name in 2007; the same year it introduced the iPhone (Sanford, 2013). The first phone made by the company was a success. In the following years the company continued to improve its product; introducing the iPhone 3g, iPhone 3gs, then the iPhone4, iPhone4s...
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...|10-11 | |4.0 Problem Definition |12-13 | |5.0 Data Analysis |14-29 | |6.0 Findings |30 | |7.0 Advantage & Limitations of MR |31-32 | |8.0 Conclusion |33-34 | |9.0 References |35 | 1.0 Executive Summary 1.1 Subject matter This report is to investigate the factors that will affect the choice making of purchasing Magnum ice cream in Tunku Abdu Rahman Tarc College. 1.2 Key findings Our primary objective, we are going to make a test to 30 students to bring prominence of which factors that will affect Tarc College students in choosing the ice cream. Our secondary...
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