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  • Fri. Dec 2nd, 2022

Golden channel

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how much gold do indian households have插图

25,000 tonnes

How big are Indian households’gold holdings?

Indian households may have accumulated up to 25,000 tonnes of gold, thereby retaining the tag of the world’s largest holders of the metal, according to the World Gold Council (WGC). We conducted a study two years ago and found the household stocks at around 23,000-24,000 tonnes.

How big is India’s role in the gold market?

India is the second-biggest consumer of gold in the world, buying anywhere between 800 and 1,000 tons of the luminous metal every year, according to the World Gold Council. India has a huge impact on the global gold price, said Somasundaram PR, managing director of the World Gold Council in India.

How big is India’s gold pile?

Households in India may have piled up around 24,000-25,000 tonnes of gold, remaining the world’s largest holders of the precious metal, Somasundaram PR, managing director (India) of the London-headquartered World Gold Council (WGC), has told FE.

Is India’s household gold reserves worth 40% of GDP?

In gold we trust: India’s household gold reserves valued at over 40% of GDP. By: Banikinkar Pattanayak |. Updated: May 20, 2019 6:51:19 AM. Indian gold demand rose 5.2% from January to March, against a marginal fall in the previous quarter, but it still trailed a 7% rise globally, showed the latest World Gold Council (WGC) data.

How much gold is needed in India in 2019?

WGC predicts 2019 Indian demand for gold at 750-850 tonnes, against 760 tonnes in 2018. "The strengthening of the rupee and the fall in local gold prices towards the latter part of the quarter triggered a rise in India’s gold demand by 5% in Q1 [January to March] of 2019 to 159 tonne," Somasundaram told the daily.

Is there a demand for gold in June quarter?

Nonetheless, domestic demand is expected to further improve in the June quarter owing to traditional wedding season buying and the Akshaya Tritiya festival. Expectations of a normal monsoon this year also augurs well for the rural economy and gold demand.

Is gold monetisation taxed?

Even its gold monetisation scheme (GMS), designed for those who have gold lying in lockers and cupboards, has failed to really take off. This is despite the interest rates in the range of 0.5-2.5% that one can earn, which is exempt from capital gains tax. The capital gains on value appreciation are also exempt from wealth tax and income tax.

Is jewellery a driver of Indian demand?

Jewellery is reportedly likely to be main driver of Indian demand but the consumption of bars and coins is expected to be higher in 2019 than in the previous year. Although the government has experimented with multiple ways to reduce the domestic demand for physical gold, be it ETFs, SGBs, gold mining funds, gold fund of funds (FoF) or digital gold, the preference for physical gold does not wane.

How much of Indian savings is done by households?

Some 75% of Indian saving is done by households. Some 66% of that is into real estate and gold – and we would very much prefer that, for the health of the macroeconomy, much more of it was into financial instruments like shares, bonds and even just plain old bank accounts. Because savings into gold is just dead money while saving …

Is India still unbanked?

It’s actually remarkable how much of India is still unbanked - this is one of the major holdups in reducing the inefficient system of providing welfare in goods and replacing it with welfare in the form of cash.

Does M-PESA help?

We’ve also got interesting evidence from Africa that this really does help. M-PESA for example, the initial shock to those running the system wasn’t that people wanted to use it, nor the use as a transactions mechanism, but the vast number of people who wanted to use it as a savings mechanism.

Is gold jewelry good for saving?

Thus gold, or gold jewelry, is a useful form of saving. So, just as a result of historical development, the use of gold in household savings works for those households. However, it doesn’t work for the economy as a whole. Some 75% of Indian saving is done by households. Some 66% of that is into real estate and gold – and we would very much prefer …

Is gold jewelry liquid?

That market in physical gold is extremely liquid as so many people use it. It is entirely possible to pawn or sell a small piece of gold in order to purchase food if the need should arise. In a manner in which gold jewelry isn’t as liquid in richer countries (you can always sell it but the buy sell spread is much higher).

Does gold work in household savings?

So, just as a result of historical development, the use of gold in household savings works for those households. However, it doesn’t work for the economy as a whole.

Is Forbes opinion their own?

Opinions expressed by Forbes Contributors are their own.

How much will Indian jewellery exports be in 2020?

Similarly, Indian jewellery exports could touch $40 billion mark by 2020, from the current $8.6 billion. He said the introduction of the GST, mandatory hallmarking and a massive push by organised jewellers to promote non-cash payments will make gold trade more transparent, the WGC said.

Is gold monetisation a success?

This means the gold monetisation scheme can be a success if the government makes it lucrative . The country’s gold demand has been shaken a tad after demonetisation, as some customers feared a crackdown on gold holding as well, but long-term prospects remain bright with demand expected to average at 850-950 per annum by 2020, the WGC said. …

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What do Indian brides wear?

Indian brides take jewelery to an extravagant new level, dripping in spectacular hair accessories, nose rings, earrings, necklaces and amulets – “sometimes to the point where you’ll see more gold than their face,” says Somasundaram PR, managing director of the World Gold Council in India.

How many weddings are there in India?

There are up to 20 million weddings a year in India, and while no two relationships are the same, all will have one thing in common. Gold – and lots of it. So much of the precious metal in fact, that it can influence the price of gold around the world.

Which country is the second biggest consumer of gold?

India is the second-biggest consumer of gold in the world (slightly behind China), buying anywhere between 800 and 1,000 tons of the luminous metal every year, according to the World Gold Council.