The Yellow metal is just going up like a sky rocket as if nothing is there to stop the current prices with the gold prices. You might have heard that India had bought a 200 tonnes of gold from the IMF (International Monetary Fund) for $6.7 billion. But would be the idea behind such a move? any ideas for that? With this move India’s gold earnings will be the tenth largest among the world central banks. This deal has triggered many analyst with their own versions of the deal, since RBI is silent with the deal stating it as foreign exchange reserve management.
This move would lift the share of gold holdings from 4% to 6% which is must less than when compared to most of the developed world. India’s foreign exchange reserves held at the central bank totalled $285.5 billion on Oct. 23, of which gold comprised just over $10 billion. India held 357.8 tonnes of gold reserves as of March 31, 2009, according to the latest data. Some also feel that for India to have a larger share in the voting with the IMF, India had done that. India should have a larger voice in the world because its a rapidly growing economy of 1.2$ trillion. There is also another point that India had tried to liquidate some of the dollar reserves to gold. Whatever may be the case the gold prices are still shining and glowing. It has really become a burden for many marriage functions, Indian’s does have a larger love for this metal than any others. Will the shine continue?