Gold-10 interesting facts which you may not know.

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Below are the few interesting findings about gold which I think will surprise you or make you knowledgeable about gold related facts.

1) Southern states of India (Karnataka, Tamil Nadu, Andhra Pradesh and Kerala) constitutes around 40% of India’s gold demand. Western states constitutes around 25% to 30% , northern states around 20% to 25% and Eastern states around 10% to 15%.

2) 7%  of Indian household saving is in the form of Gold (RBI data 2009-10). But CMIE (Center for Monitoring Indian Economy) suggests around 36%.

3) 90% of the consumed gold in India is imported.

4) Gold and Jewellery constitutes around 30% to 50% of total marriage expenses.

5) Hence weddings generate around 50% of Indian gold demand. Gift range varies from 5 gram from poor families to 4-5 KG from affluent.

6) Despite this high demand, Indian gold jewellery consumption on per capita base is  (0.4 gram) below countries like USA and Italy (2009).

7) RBI’s 7% of total reserve is in the form of gold. Whereas USA have 72% and Europe have around 58% of gold as their reserve in their respective central banks (June 2010).

8) Currently India & China together account for approximately 25% of annual gold demand. But Indian above the ground gold stock is around 11% of global stock.

9) 40% to 50% of gold price movements since 2002 were dollar related.

10) Higher Real interest rate (Central Bank’s lending rate-Inflation) leads to lower demand in gold and lower Real Interest rate leads to higher demand in Gold. Equation suggests that a 100 basis points fall in real interest rate will result in an initial 1.5% rise in the price of gold.

More To Explore

Leave a Reply

Your email address will not be published. Required fields are marked *

Looking for Unbiased, Simple and Conflict-Free Financial Planning Service?

We neither SELL any product nor represent any Insurance or Mutual Fund Companies.

We offer you an unbiased Fee-Only Financial Planning Service.