Gold in India

As per the annual gold survey it comes out that 171,300 -200,000 metric tons of gold on the earth

World’s largest gold holding country is USA holds 8, 1335 metric tons of gold

USA is the country having largest gold in forex reserves i.e.; 79.1%

India’s gold holding is 653.01 tons here (1 tons =410 cr)

Despite  of Indians are  in loved with the gold still our gold reserves Are very less  actually one of the reason is there is no investment in gold in India.

Gold

According to the World Gold Council (WGC). “We conducted a study two years ago and found the Indian household stocks of gold around 23,000-24,000 tonnes.

Apart from Indian household Indian temples are not least behind, almost 4000tonne gold is held by Indian temples sounds too strange but it is:

Padmanabhaswamy temple in kerela – 1300tonne

Sheri venkateshwara Pune – 1.2tonne /year (inflow)

Vaishno Devi – 1.2 tonne

Siddhi vinayanka -160kg   and so on.

The Hon’ble  Prime Minister said there is no reason for a country with so much gold lying idle to remain poor. With some efforts and right policies India can get rid of this tag (of a poor nation)

In order to eradicate from the poverty and bad holding government introduce the gold related scheme to increase the Indian general reserves

In 2015 prime minister has launched three Gold related schemes namely:

Gold monetization scheme works like an saving account in which bank will keep the customer gold against the payment of specified interest i.e., 2.5% on the basis of weight of gold deposited it is an option for the customer at the time of maturity to redeem either in physical god or in cash

Despite of earning on our idle gold unfortunately this scheme was unsuccessful

Gold sovereign bonds scheme in which a government securities bonds denominated in gold issued by the RBI on behalf of government of India on maturity bonds will be redeemed on the current gold price and investors will be able to earn 2.75% interest per annum by buying paper gold

Indian gold coin scheme in which gold coin is issued by the government imaged with Asoka chakra and Mahatma Gandhi with 24k of purity in order to mobilize the gold coin.

Despite of earning on our idle gold unfortunately this scheme was unsuccessful

In simple Due to this scheme Indian gold reserves would be incline and the more will be the gold reserves the more currency to be print , it would be used in our International trade and government can use at the time of crisis by selling it .

India is the largest gold importer country afterward china, India annually consumes around 800 -850 million kg of gold. At present, gold attracts an import duty of 10 per cent and GST of 3 per cent, which means the total tax incidence, is 13 per cent.

And in India at the time of sale capital gain attracts on gold 20% +surcharge if any +cess of 4% with indexation benefits and GST at the time of buying normally 3% on the value of gold plus making charges all these factors tends to lead up the price of gold .

India’s gold is one of the purest gold in the world; in India 22k gold is mostly used to make the jewelries it contains 91.67% pure gold and the rest of the alloys

One of the reasons of high gold prices

Dubai is the country having cheapest gold rates due their relaxation in taxes   and there are also few of the country like china, Switzerland with cheapest gold prices.

 A gold price of a country actually reveals the true state of an economy health, when gold price arise it indicate economy is in good condition and vice versa

Author Bio

Qualification: Student - CA/CS/CMA
Company: N/A
Location: New delhi, New Delhi, IN
Member Since: 15 May 2020 | Total Posts: 3

My Published Posts

More Under Fema / RBI

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031