to the latest report by the World Gold Council (WGC), India, which is the
world’s largest consumer of gold, has the 11th largest gold reserve, with the
current holding pegged at 607 tonnes.
- India’s overall position in terms of
total gold holding would have been tenth had the list included only countries.
- International Monetary Fund (IMF) is
included and is third on the list with total gold reserves of 2,814 tonnes.
- The U.S. tops the list with gold
reserves of 8,133.5 tonnes, followed by Germany with 3,369.7 tonnes.
- Among Asian countries, China and Japan
have more reserves when compared to India.
- The demand for gold was concentrated
among emerging market central banks, with diversification the key driver in the
face of ongoing geopolitical and economic uncertainty.
World Gold Council (WGC) is a nonprofit association of the world’s leading
in London, the WGC covers the markets which comprise about three-quarters
of the world’s annual gold consumption.
is a market development organization for the gold industry which includes
25 members and many gold mining companies as well.
WGC was established to promote the use of and demand for gold through
marketing, research and lobbying.
Currency: Gold was used as the world
reserve currency up through most of the 20th century. The United States used
the gold standard until 1971.
paper money had to be backed up by equal amount of gold in their reserves.
the gold standard has been discontinued, some economists feel that we should
return to it due to the volatility of the U.S. dollar and other currencies.
a hedge against inflation: The demand for gold
increases during inflationary times due to its inherent value and limited
supply. As it cannot be diluted, gold is able to retain value much better
than other forms of currency.
of Currency: When a country imports more
than it exports, the value of its currency will decline. On the other
hand, the value of its currency will increase when a country is a net
exporter. Thus, a country that exports gold or has access to gold reserves
will see an increase in the strength of its currency when gold prices
increase, since this increases the value of the country’s total exports.
the central banks rely on printing more money to buy gold, they create an
excess supply of the currency. This increases the supply and thereby reduces
the value of the currency used to purchase it.