9 months ago
India Aims to Influence Global Gold Prices
India wants to become a big player in the gold market.
Right now, it buys gold from other countries and has to accept their prices.
But in the next 10 years, India plans to mine more gold at home, which will be about 20% of what the country needs.
This will help India have more say in setting gold prices worldwide.
Experts also think India could become a major center for making jewelry in the next few years.
Right now, Indian people own a lot more gold than the government does, which is different from other countries like Switzerland.
Making more gold at home and having better systems for buying and selling gold will help India become more important in the global gold market.
India aims to become a price-maker in the global gold market within the next decade.
Domestic gold mining is expected to meet 20% of India's gold demand in 10 years.
India currently relies on imported gold and is dependent on London's benchmark prices.
India's Reserve Bank (RBI) and evolving gold banking system will help influence global prices.
India is projected to emerge as a global jewellery hub within 2-3 years.
- Who
- India, World Gold Council, Aditya Birla Group
- What
- India's transition to a price-maker in global gold market
- Where
- India, with influence on global gold prices
- When
- Over the next decade, with immediate plans in progress
- Why
- To reduce dependence on imports and increase domestic mining and gold banking
Key facts
- Current Gold Demand Source
- Imported
- Projected Domestic Mining Contribution
- 20% in 10 years
- Current Gold Holding Ratio (Consumer:Government)
- 50:1
- Swiss Gold Holding Ratio (Consumer:Government)
- 1:5
- Expected Timeline for Global Jewellery Hub
- 2-3 years
- Key Event
- Gems and Jewellery Conference by CCI
- Speakers
- Sachin Jain (WGC), Sandeep Kohli (Novel Jewels)
Quotes
Sachin Jain
Regional CEO for India at the World Gold Council
“Over the next decade about 20 per cent of the demand of gold will be furnished by our own gold mined in India. There will be a sense about Indian gold, employment, and foreign investment coming to the mining sector.”
thehansindia.com
“With RBI and the evolution around the banking system, we will have influence on being a price-maker as well. Transparency and responsibility will not be optional but will be the basis of the system.”
thehansindia.com
Sandeep Kohli
CEO of Novel Jewels, Aditya Birla Group
“What I find absolutely astonishing is that consumer demand in India is not defining the price consumers pay, despite being amongst the largest consumers of gold.”
thehansindia.com
