Gold imports have risen sharply to $40.5 bn in the April-January of FY22 which is the highest ever for the country in the past comparable periods
India imported 1,050 tn gold worth ($55.7 bn) in 2021, more than double of 2020. Last year's gold import surpassed the high recorded in 2011. Find out what is behind India's renewed rush for gold?
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But those seeking greater safety should stick to SGBs or gold ETFs
Bullion is viewed as a hedge against the inflation and currency debasement likely from widespread stimulus
Spot gold XAU= was up 0.4% at $1,792.42 per ounce by 0636 GMT, after hitting its highest since Aug. 6 at $1,795.25 in the previous session
Demand for gold in India jumped 19.2 per cent in the April - June 2021 quarter to 76.1 tonnes, suggests the latest report from World Gold Council (WGC)
If global growth improves with price rise in check, that would be negative for the yellow metal
Rising inflation, low real yield, and equity market volatility are positives for the yellow metal
Easing of lockdown restrictions, festive period and the ensuing wedding season, however, revived demand hope and drew in jewellery demand worth 137.3 tonnes in the December 2020 quarter
As global economies passed through one of their worst phases because of Covid, investors sought refuge in safe-haven assets, such as gold
Policies that support the yellow metal will remain in place in the foreseeable future
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Experts recommend buying gold as the fundamentals supporting a gold rally have not changed.
The move is seen as a game changer for India's bullion industry, and is expected to put India in a position to set its own price of gold
Those keen on buying gold as investment will be better off with sovereign gold bonds or ETFs
In the July SGB issue, bonds equivalent to gold worth 4.13 tonnes were sold, according to the official data
Gold exchange-traded funds saw hefty net inflows of over Rs 3,500 crore in the first six months of this year as investors continued to hedge their exposure to riskier assets amid the Covid-19 crisis
Currently, transaction in paper gold is available in the form of exchange-traded fund
Indian households supposedly hold 25,000 tonnes of gold valued at Rs.121.5 trillion, or almost 60 per cent of India's GDP.