Thread: Indian Gold Market

GOld is becoming quite expensive day by day. The price of the gold is rising high along with silver and it is out of the reach of the common man. Indian domestic gold market is estimated to be greater than US $15 billion, and is even assumed to increase significantly in following years. From April 2008-February 2009 gems, jewelries costing US $17.79 billion were exported from India. Gem & Jewelry Industry accounts for greater than 10% of entire Indian commodities exports.

In India there are large number of people who long for gold. Especially in south India one can find families purchasing loads of gold during several occasions. This is not the case in any other country. Therefore the indian gold markets are facing a high tide due to high demands in the jewelery products.

Indian gold market is soaring high. Gold has become not reachable from the reach of the common man. The rates of gold has just become 4 times high in these 10 years. Gold is the costlier metal that is liked by every woman but now buying a piece of gold would be very difficult for everyone due to the increase in the rates of gold. Silver is also soaring high just like gold.

And what about China ? The same case like India ? OK, let's see...

Even as Gold prices continue to rise, there is mounting speculation among traders in China that the Chinese government is going to accumulate the yellow metal in the coming months. Recently, there have been comments from China Gold Investment Research Institute that the People’s Bank of China is stepping up plans to buy gold to increase its foreign exchange reserves in the yellow metal.

Currently, China holds only minor proportion of its official foreign exchange reserves in gold--just 1.6%. But traders say if China is going to accumulate gold, it is going to do it in complete secrecy that no one would know about it in the next few years that the People’s Bank of China had actually added up the gold reserves. The first time China officially reported its gold reserves was in 2003. It then reported the existence of 600 tons of gold reserves. Then for the next five years, there was no word on China adding up its gold reserves. Suddenly, in 2008, China sprang a surprise by announcing that the People’s Bank of China had doubled its gold reserves in the past five years to 1054 tons.

Indian gold market is one of the best in the world. And due to festive seasons one can find the rates of gold reaching sky high due to high demand. However it is believed that China is going to beat India in gold market by becoming the largest gold market by importing 190 tonnes of gold in comparison to India's 173 tonnes.