DYNAMICS OF GLOBAL COMMODITY

MARKETS-
PRECIOUS & INDUSTRIAL METALS
MEMBERS
ADITI MEHTA- 126
HARSH.A.MEHTA- 127
HARSH.T.MEHTA- 128
JINAL GAMI- 129
SHRENIK MEHTA- 130
VIRAL MEHTA- 131
INTRODUCTION
What is commodity markets?
A COMMODITY MARKET is a market that trades in primary rather
than manufactured products. Soft commodities are agricultural
products such as wheat, coffee , cocoa and sugar. Hard
commodities are mined, such as (gold, rubber and oil). Investors
access about 50 major commodity markets worldwide with purely
financial transactions increasingly outnumbering physical trades in
which goods are delivered. Futures contracts are the oldest way of
investing in commodities. Futures are secured by physical
assets. Commodity markets can include physical trading and
derivatives trading using spot prices, forwards, futures,
and options on futures. Farmers have used a simple form of
derivative trading in the commodity market for centuries for price risk
management Commodities markets allow global investors to make
or lose money by predicting the rise or fall of primary products like
soybeans, wheat, corn, oats, sugar, rough rice, cattle, pigs, precious
metals, industrial metals, currencies, electricity and others.

WHAT ARE METALS?
Metals possess many unique fundamental properties that
make them an ideal material for use in a diverse range of
applications. Structures ranging from bridges, silos and tractors
to gym lockers and lawn mowers all contain some form of
metal. Properties such as high tensile strength, high fracture
toughness , malleability and availability are just some of the
many advantages associated with metals.


PRECIOUS METALS
A precious metal is a rare, naturally
occurring metallic chemical element of
high economic value.
Historically, precious metals were important as
currency but are now regarded mainly as
investment and industrial commodities.
The best-known precious metals are gold and
silver
Other precious metals include the platinum
group metals ruthenium, rhodium, palladium
etc.
USES

ADVANTAGES
Precious Metals Can Hedge Against Inflation
Precious Metals Are Global Currency
There Are A Wide Variety Of Precious Metal Investment
Options Available
You Can Take Possession Of Your Investment
Precious Metal Investments Can Diversify Your Portfolio
Precious Metal Investments Are Very Liquid And Marketable
There Are A Number Of Precious Metals To Choose From
DISADVANTAGES
Low Profitability

Appreciation Cycles

Price Corrections

FEATURES
Precious metals rise on firming global trend

Precious metals recover on international trend

Precious metals ease on poor demand

Investing in precious metals can be tricky

Precious metals fare best as dollar dives




INDUSTRIAL METALS
Gold and silver may get all the glory, and look pretty,
but when you want to build an economy, it's the
industrial (or base) metals that steal the show. As such,
base metals have emerged as a key way for investors
to tap into the rapid development of emerging
economies like China. As China builds new apartment
buildings and factories, it needs iron for the trusses,
copper for the pipes and aluminum for the appliances.
For investors just getting started, here are the most
widely used base metals in the world, in order of global
consumption.

TYPES
Steel (Iron)
Aluminum
Copper
Zinc
Lead
Nickel
Tin
USES
Copper Alloys:
Used for applications with low friction requirement, brass is one of the popular metal alloys made by
mixing copper with zinc. Valves, locks, bearings and gears are some examples of these applications.
Moreover, brass is known for its recyclable nature. Another common copper alloy is bronze which
contains tin as another constituent metal.

Aluminum Alloys:
The aluminum alloys are the most popular materials that have great importance in many industrial uses.
Consisting of aluminum, nickel and cobalt, alnico is one of these alloys and is used in electric motors,
cow magnets, sensors and microphones. Duralumin is made of aluminum, copper, manganese and
magnesium and is an extremely popular alloy for aircraft structures.

Iron Alloys:
Iron needs no introduction for being a popular choice for many metal alloys like steel and stainless
steel. Steel is extremely admirable for its high rust resistance, tensile strength and welding ability. The
alloy is a useful material for the construction of railways, roads, bridges and skyscrapers. Stainless steel
is a famous variety of steel and is used in making surgical instruments, industrial equipments, bridges
and aircraft and automobile body parts.

Other Metal Alloys:
Tin is also used as the main constituent for many alloys like pewter and solder. While pewter is
mainly used as a decorative material, solder is a widely used material for joining (called soldering)
metals for many important industrial applications. Sterling silver is a well-known alloy of silver. It is
useful not only as a jewelry material, but also for making medical and musical instruments.Nichrome, an
alloy of nickel, is used in explosive industry for electric ignition systems. Resistance wires made of this
alloy too are popular.











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FEA

COMPARISON

CURRENT STATUS OF BOTH METALS

CONCLU

BIB

FINISH