India’s Gold Investments Surge by 60% to Rs 1.5 Lakh Crore in 2024: World Gold Council Report

India’s Gold Investments Surge by 60% to Rs 1.5 Lakh Crore in 2024: World Gold Council Report

According to a recent report, investments in gold in India have surged by 60%, reaching Rs 1.5 lakh crore in 2024. The report highlights that increased gold investments in India and China helped offset the downturn in Europe and the U.S.

Key Highlights of the Report

• Global Demand: Grew by 25%, with investment demand rising by 29% in 2023.
• Global Supply: Increased by 1%, primarily due to mine production and recycling.
• Outlook for 2025: Central banks and Gold Exchange-Traded Funds (ETFs) are expected to drive demand.
• India: The Reserve Bank of India (RBI) added 73 tonnes of gold to its foreign exchange reserves, increasing gold’s share to a record 11%.

Reasons for Increased Gold Demand in India

• Symbol of Wealth and Status: Gold holds cultural significance, especially in Hindu and Jain traditions, and is central to various rituals and celebrations.
• Investment and Security: Gold is valued for its portability, particularly in rural areas.
• Weddings: Around 50% of India's annual gold demand comes from marriage-related purchases.

Gold Resources Status

• India: The largest gold ore reserves (primary) are located in Bihar (44%), followed by Rajasthan (25%), Karnataka (21%), West Bengal and Andhra Pradesh (3% each), and Jharkhand (2%) (Ministry of Mines, 2022).
• Global: The major holders of gold reserves include the USA, Germany, Italy, France, China, Switzerland, India, and Japan.
• Top Exporters: Germany, the European Union, Switzerland, the United States, and Japan (World Integrated Trade Solution, 2023).

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