India is among one of the growing economies in the world, its growing fast as every day passes and now India is one of the top gold consumers in the world, Indian peoples love towards the precious metal make India one of the largest consumers.
India and gold have many relations people believe in gold in many ways whether it’s for financial security, financial statement, gift, donation and the most important is Indian weddings, weddings in India is responsible for the huge demand for gold so in many ways India is one of the best markets for gold too and the question arrives in mind is that how much gold India have? Indian culture and traditional attachment to the metal which dates back to over 2000 years.
India has physical possession of more above ground (mined) gold than any other country in the world and unverified sources claim that this could be up to 25% of the gold ever minded India, one of the world’s top gold consumer is in the 10th position among the top 10 countries that hold the most gold in their central banks the reserve bank of India holds 557.7 tons of the gold compared to number 9, the Netherlands.
According to economic times of Indian public holds 20000 tons of the gold in jewellery, coins and gold bars, the big amount of gold in India is available in Indian temples Since 1970 the Indian rupee has lost 88.7% of its purchasing power compared to the U.S. dollar.
But the people’s buying power has been maintained thanks to gold. Back in 1982, India only consumed 65 tons of gold. Imports were banned until around 1990 and, as a result, most of the gold consumed came via smuggling. The premium that was about 50% of the price of gold, well above today’s minimum 10% premium.
At that time, poor farmers accepted gold as currency and collateral to get them through tough times. Farmers also used gold as security to reacquire their land from local landlords.
The chart below shows the imports that India now regularly consumes. India’s demographics are also pouring the demand for gold. India has one of the world’s fastest rising populations. Its present population is 1.28 billion vs. China’s 1.4 billion. But India’s population is rising faster than China’s. While India’s population development rate is not that high when compared to a few, mostly African, countries, the fact that it is on such a high result in large numbers.
India is projected to be the world’s most crowded country by 2022. On Diwali, the precious metal is high on the buying list of every household. But that may not have been a smart investment decision, at least over the last five years Newlywed brides are given enough jeweller to break their necks.
Peasants store their pitiful savings in trinkets. Wise peoples sport rings like knuckle-dusters and tycoons with broken balance-sheets offer gold at temples in return for improvement.
Even as economists and officials beg them not to, Indians splurge on the shiny stuff—in 2011 India imported more gold than any other country—about 1,000 tones, or a fifth of global annual supply. That is the similar amount that sits in the central bank vaults of Switzerland