“Demand is the relationship between price and quantity demanded for a particular goods and services in a particular circumstances . For each price the demand relationship tells the quantity the buyers wants to buy at that corresponding price . The quantity the buyer wants to buy at a particular price is called the Quantity Demanded.”

“supply is the directly proportion of price when the price of the commodity is increased then the supply of that product also increase or visa- versa.”

ON THE BASIS OF GOLD COMMODITY:-

In the relation of gold the demand cannot affected or doesn’t matter of price, demand and supply because it is luxurious product and they always usable for functions and many of areas. The price of gold is increases demand then the demand and supply also occur in positive range.

The term can be movable as follows:-

When the price is increases then the demand and supply can movable in upward direction.

When the price is decrease then then the demand and supply can change because the demand is high and supply will be decreases in range.

The main concept is started from here to analyze the demand and supply of gold in India. The price is the main factors which can be changing whole style of product sale in the market but gold is a luxurious product and the price does not matter there they r directly based on the willingness to buy the products.

This is analyze on the basis of previous data when the price is 17000 rs. In india and what about the demand and supply of the gold in market this will shown as follows:-

It schedule is rougly showing to how the relation between price , demand and supply that will be arises on same direction this is only for gold product not for other . It is the concept demand curve is always downward slope and the supply curve move on upward . it means when the price of commodity is increase then demand is decrease and the supply is also increases but in that condition the demand and supply moved in same proportion .

THE MAIN OBJECTIVE OF GOLD DEMAND AND SUPPLY ARE AS FOLLOWS:-

When the price is automatically increased in year 2005 then the consumers are simultaneously struggling.

In present time the market price of gold is 19,171 Rs. Per 10 gram , after hitting a record high of 19,257 rs. Earlier in next week.

In the time of festiwal the price is increase then the consumer is struggling to buy but in small range capacity.

Basically in the seassion of dhanteras , diwali the demand of gold is high and the consumer can buy without any price problem.

BRIEF DISCRIPTION ABOUT HIGH PRICE CUT DEMAND:-

This condition doesen’t seen in the gold market because when gold was a “barbarious relic” the gold price stood at just 12000 rs. In that condition the various changes are coming in the gold and silver market according to as follows:-

A CHANGE IN THE NATURE OF THE GOLD INVESTORS

JEWELRY

At the turn of the century , the jwelery and industrial gold buyers , alongside rural , agicultural Indian demand, dominated the gold price. In a developed country the gold was not bought for itself and its importance. That condition the major role basically in jwelery, often the cheaper part of piece of jwelery. in that time the prices cannot rises in that much, in that condition the gold price is high .it means when the price of gold is high then the buyers are low. The buyers are still there, but they want in small volume or range due to high price of that commodity. In that condition the market are focuses in middle class person to increase the capability power and creat high growth

INDIAN DEMAND

When they targeted to middle class family to increase the demand in that level of customer mind to focuses in that level of customer. The market wants to increase the efficiency and they also aware that gold is traditionally valuable in india and they aeare that customer can easily brought due to the need and knows the condition of market.

After that marketers can expect that the price of gold is higher then doesn’t affect in that market strategy because it is the investment terms which is basically effort by Indian customers. They always analyse that when the price is high then it affect in supply terms.

WESTERN JEWELRY , COIN AND BAR DEMAND

According to the analyser to analyse that in tradition the gold market cheap jewelry basically invested in to coins and small bars is and they analyse to investing in that areas of Indian market.the Demand ofr gold is always protect the wealth andprotect the mony market loss to maintain and equal balance generated. The marketers also seen the quantity and quality of demand dropped initially, as jewellery demand always decline or down faced in the market but is now gathering pace and actually increasing on both fronts, especially if the marketer add the small coin and bar demand to it then the gold moves up the ladder of exclusively and expensive decorative items again higher quality gold jwelery demand (accepting high prices) is growing again. At the last the marketer seen that the demand of jwelery is always increases. And generated high efficiency in the market.