Gold Mining Industry
Gold Mining Industry research paper due and no idea how to lay it out? We suggest beginning by discussing relationship between the gold price and performance of gold-mining stocks. There are many things that can be covered in your research on the gold mining industry. Below are a few examples of how you should set up your research paper and the topics that are important to the gold mining industry. If this doesn't help, have Paper Masters write your industry analysis and get a professional assessment with an academic focus.
Instructions for Gold Mining Industry Research Paper:
Part 1: Introduction to Gold Mining Industry Research Paper
- Background on gold as a commodity.
- History of the gold market - discuss the enormous fluctuations in the gold price in the past fifty years.
- Background on the metals and mining sector.
- And the importance of gold in America, and globally. Key definitions.
- What factors influence the spot price of gold?
- What conditions make the price of gold rise? (look at: current-account, trade, government debt, valuation of equities, international politics) Historic returns and price fluctuations.
Background of the Gold Mining Industry
- Background on the gold mining industry.
- Who are the big players?
- Where are they located?
- Who are the consumers?
- How do gold mining companies make money?
- What are the costs of production?
- Do the costs vary from country to country?
- What influences the price of gold mining stocks?
- Since gold is denominated in US Dollars, discuss the impact and risks (such as currency risk) on the performance of foreign gold-mining stocks vs. domestic ones (USA).
- Describe the status quo of how companies that (foolishly) did not choose to hedge against spot price/currency risk are suffering poor stock price performance, even though the price of gold is rising. For example: South African gold mining stocks.
Part 5: Investing in gold:
- What are the vehicles for investing in the gold industry/market (pros and cons of each) ?
- Metals and mining stocks
- Purchasing actual gold
- Derivatives, ie. Futures.
- Discuss gold as a commodity, as well as a currency
- Describe gold as a great "inflation hedge" for investors. What does that mean?
- Discuss how if the rate of inflation is greater than the Fed Funds rate, then we have a situation where it doesn't't pay to own US government T-bills, so people invest in gold, even though there are risks involved. (Include current figures - gold has gone up around 50% in the past couple years - that's a great return on investment!)
- Give examples
The Price of Gold
Part 6: Relationship between the spot gold price and performance of gold-mining stocks
- Discuss past research
- What has history shown? Give examples
- Empirical Research - correlations?
Part 7: How do the prices of gold-mining stocks move with changes in the spot price of gold? Do they correlate at all?
- Discuss the price of gold as an issue, as well as the importance of management (executive decisions, mangers etc) of gold-mining stocks: hedging decisions and foreign exchange risk.
- Give examples
Part 8: Conclusion(s)