RBI becomes the largest buyer of gold by central banks – News Couple
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RBI becomes the largest buyer of gold by central banks


RBI becomes the largest buyer of gold by central banks

Jewelery orders 60 per cent increase in Post Covid recovery

by K Raveendran

Interesting trends appear in the performance of gold as an asset
As India recovers from the impact of the Covid pandemic.
Although some basic fault lines continue to grumble, there is a file
Concrete pick-up on demand, like a flagship
industry, with pent-up demand translating into big numbers in
Sales terms.

The Reserve Bank of India was the largest buyer of gold among all
Central banks in the third quarter of 2021. India’s gold reserves have grown
By 41 tons to 745 tons during this period. It also represents a slight sign
Increased pace of purchase by the Reserve Bank of India. In fact, the central bank
Demand in general was one of the highlights of the gold market
this year. India’s gold purchases helped stem the slowdown in
Acquisitions by other central banks. The direction is seen set to
Continue in the coming quarters. According to 2021 estimates look
Set to see biggest annual increase in official gold in India
reserves since 2009.

A similar trend is observed in domestic investment demand in
Terms of bars and coins. Third Quarter Bar and Investing in Coins
It increased 27 percent year-on-year to 43 tonnes on pent-up demand and
The price of gold fell. Match with consumers of jewelry, bars and coins
Investors responded to the sharp drop in prices, the average drop
Quarterly price, by adding to their holdings. price effect was
Increased by releasing pent-up demand as closing restrictions
loosen up. Although investors are tempted by the power of the stock market,
The Sensex touched an all-time high, be wary of the possible
Corrections amid the high ratings. Encourage this investment in
Gold for diversification purposes.

According to the World Gold Council, the demand for jewelry in India is in
The third quarter increased nearly 60 percent on a quarterly basis
And on an annual basis due to strong pent-up demand, economic recovery
activity and lower gold prices. After being closed in a lot of
The second quarter to deal with the second severe wave of Covid,
Demand for jewelry rebounded sharply in the third quarter. that
The acceleration of the vaccination program and a strong end to
The monsoon season boosted consumer confidence.

Buying occasion-related gifts has seen a strong comeback and strong demand
It was thriving two weeks ago an inauspicious shrap period that
It fell at the end of September. Retailers anticipate strong demand
During the fourth quarter of the wedding and holiday season held
In preparation amid reports that a quarter already
I got off to a quick start. The season that contains the largest number of
Auspicious wedding days bode well for demand for jewelry
The rest of the year, especially because a good monsoon is expected
to support rural income. The only knight is the possibility for more
Covid waves and lockdowns, which seem to have receded so far
Significantly.

An interesting trend in gold jewelry demand was new
regional transformation. Regionally, North India has outperformed
South Some southern states, notably Kerala, were also affected by higher
Covid cases and store opening times restrictions. But this is
The situation is expected to change in the coming weeks
It is constantly improving in the affected countries.

The government introduced mandatory marking, which
The industry is seamlessly adapting to it. This is to be expected in the end
Improving transparency and giving consumers greater confidence in
The purity of the gold they buy. Another important development is
Launching digital platforms, unlocking more channels for gold
investors. Digital gold platforms launched by retailers such as
Titan, Kalyan and Senco Gold provide investors with a convenient way
To make regular investments in gold for Rs 100.

Another notable industry development is the continuation of politics
Reforms related to domestic and international gold exchange
Bullion exchange. During the third quarter, the stock and
The Exchange Board of India (SEBI) approved the local framework
Instant exchange. Meanwhile, international financial service centers
The International Bullion Exchange (IFSCA) launched the India International Bullion Exchange
(IIBX) on October 1, 2021. These exchanges aim to empower bullion
Banking and the establishment of India as a major trading center for bullion, perhaps too
Assist in the successful implementation of gold monetization
Blueprint and development of gold-backed products. (IPA service)



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