India Gold Reserve
India’s gold reserves have grown rapidly over the past few years. The major reason for this is the increased purchase of gold in recent times. The track record of buying gold is still good and there has been a large amount of gold buying in May as well.
Also read this: Purchase of 24 tonnes of gold in four months; Why is RBI buying so much gold?
India emerged as the world’s third largest buyer of gold in May, according to data from the World Gold Council. Last month, India bought gold worth Rs 722 crore. According to the quantity, this purchase is 45.9 tonnes. This shows that India is still taking an aggressive stance to increase gold reserves.
Which country bought more gold than India?
Only two countries were ahead of India in terms of gold purchases last month. Switzerland is on the first position by purchasing 312.4 tonnes of gold. The value of this purchase is Rs 2,461 crore. While the neighboring country China is in the second position by buying 86.8 tonnes of gold for Rs 2,109 crore.
While no one was watching, RBI has shifted 100 tonnes of its gold reserves back to India from UK. Most countries keep their gold in the vaults of the Bank of England or some such location (and pay a fee for the privilege). India will now hold most of its gold in its own vaults.…
— Sanjeev Sanyal (@sanjeevsanyal) May 31, 2024
How much has gold stock increased in five years?
India’s gold reserves have grown significantly over the past few years. India had gold reserves of 618.2 tonnes in March 2019. By March 2014, this stock had increased to 822.1 tonnes. That is, India’s gold reserves have increased by 33 percent in the last 5 years.
What was the reason given by the Governor of Reserve Bank?
RBI Governor Shaktikanta Das had recently said that more gold is being bought to stabilize the country’s foreign exchange reserves and diversify the portfolio. He had said that due to the volatility of the dollar, the Reserve Bank felt the need to increase its gold reserves.
Gold has been a favorite of investors since ancient times. Today, gold is considered as a safe investment in an uncertain environment. Due to this, whenever there is a geopolitical tension situation in the world, the demand for gold increases and its price starts to rise. The central banks of many other countries, including the Reserve Bank, are the largest buyers of gold.
Also read this:
• Gold prices at historic highs; Why are gold prices increasing? Is this the right time to invest?
