Why India’s central bank is increasing gold reserves amid record gold prices

Rave News

As of the end of September, the Reserve Bank of India had a total of 855 tons of gold, of which 510.5 tons were safely stored in India.

Gold prices surged by Rs 1,000 in Delhi on Wednesday, crossing the Rs 82,000 per 10 gram mark for the first time on strong buying by jewelers ahead of Diwali. But since it is Diwali, people are even buying it at a high price.

Today, the price of 10 grams of gold is Rs 79,621. If someone wants to buy 1 kg of gold, he/she will need to spend around Rs 80 lakh. The price of gold has increased by more than 200% in the past 10 years. The Reserve Bank of India said on the occasion of Dhanteras that the Bank of England has transported 102 tonnes of gold to India through a secret mission. Since September 2022, a total of 214 tons of gold have been brought into India.

Now why was this done and why was so much gold brought into the country? The reason behind this is the wars that have been going on around the world in the past few years. Therefore, it is not safe to store gold abroad, which is why the Reserve Bank of India brings back gold stored in foreign banks.

In 2015, the price of 10 grams of gold was Rs 25,380. In 2019, it became about 40,000 rupees. In 2020, when the COVID-19 pandemic hit, gold remained expensive and the price crossed Rs 52,000. In 2022, the price rose above Rs 51,000 and crossed Rs 61,000 in 2023. This year, it touched a record of nearly Rs 80,000.

In other words, after 10 years, gold worth 25,000 rupees becomes 80,000 rupees. Gold is also a better investment option and buying gold during festivals in India is also considered auspicious. So whether gold is cheap or expensive, demand for gold still exists.

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