India overtakes gold reserve position from Saudi Arabia and UK as per WGC List

by Psu Connect
Date: 19-01-24

The recent released World Gold Council Report, has listed the United States to be the largest gold reserves sustaining country, while India is placed at ninth place ahead of Saudi Arabia and United Kingdom.

India overtakes gold reserve position from Saudi Arabia and UK as per WGC List

The gold reserves for the United States are estimated at around 8,133.46 tonnes as per the released list, valued to be approximately, $489,133 million. As per the Forbes report, Germany is in the second spot with estimated gold reserves of 3,352 tonnes whereas, Italy, France, and Russia have occupied third, fourth, and fifth spots respectively.

India has emerged as the country having the ninth-largest gold reserves with the total estimation measuring 2,191.53 tonnes, valued at $131,795 million. There is an inverse relationship between gold prices and the US dollar, where the dollar depreciates and gold prices tend to rise, allowing central banks to safeguard reserves amid market volatility.

It is mandatory for countries to hold gold reserves to meet unforeseen consequences and insufficient financial balance, facilitating currency’s worth. In addition to that, countries maintain their gold reserves to diversify their portfolios, mitigating risks linked to other asset value fluctuations. Some countries use gold to settle trade imbalances and/or as collateral during economic turmoil as its value typically increases and act as an aid in times of crisis.

In terms of domestic production, Karnataka is the largest producer of gold in India. Karnataka produces 80% of the gold in India while, it is known as the Land of Gold, and Kolar Gold Fields is the largest gold mine in the country and is located in Kolar.