Gold Reserves

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ABSTRACT
Gold acts as a catalyst in boosting the economy of any country and maintaining and stabilizing the exchange rate. Gold as being a risky asset, of which governments hold large stocks, it is vital to know the co-integration between countries. The research is done to study whether or not the Gold reserves of the world are co-integrated means that the gold reserves of the world co-move with each other. Data is extracted from the World Gold Council of past 62 years having a sample size of 32 countries. Conceptual framework model is developed comprising of 32 variables. Johenson Co-integration test is applied to analyze the data. Co-integration is present in the continent of Africa in recent years as the Trace statistic value is greater than the critical value (T>C.V) so there is co-integration between the countries regarding the Gold reserves in the continent of Africa. Countries in Asia show that co-integration is present. It is observed that co-integration is present in Europe from recent years. No co-integration is observed in North American continent found at any level of time because it is noted that the trace statistic values are less than the critical value. Co-integration present in South America.

TABLE OF CONTENT
S.NO.DESCRIPTIONPAGE NO.
1.ACKNOWLEDGEMENTS..................................................ii 2.ABSTRACT.........................................................................iii 3.LIST OF TABLES...............................................................v 4.LIST OF FIGURES.............................................................vi 5.CHAPTER 1: INTRODUCTION........................................ 1.1Overview........................................................................ 1.2Problem Statement.......................................................... 1.3Hypotheses..................................................................... 1.4Outline of the...
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