ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Finance and goldstock

Updated on January 17, 2013

India purchases gold

The economic powers in the world were amazed last week when India purchased 200 tonnes of gold from International monetary fund(IMF).This purchase needed an investment of Rs.35,000 crores.India also announced that it is ready to purchase still more gold, if need arises.With this purchase, India reached 10th place among the top stockers of gold, in the world. It has now 557.5 tonnes of gold in its foreign exchange reserve stock.It makes 6% of its total foreign exchange stock.It could save that much forex exchange in international currency trading business.

Name of the country -Gold Stock in tonnes -% of gold in its Forex.currency reserve

1.U.S.A. 8133.5 77.4 %

2 Germany 3408.3 69.2 %

3 Italy 2451.8 66.6%

4 France 2445.1 70.6 %

5. China 1054.1 1.9%

6 Switzerland 1040. 29.1 %

7 Japan 765.2 2.3 %

8 Holland 612.5 59.6 %

9 Russia 568 .4 4.3 %

10 India 557 .7 6 %


  ImF head quarters -Washington
ImF head quarters -Washington
 Enterence and logo of IMF
Enterence and logo of IMF

Top ten countries in Forex reserve are the following:

1.China-with Rs.113 lakh crores($1=Es.50/-)2.Euro zone - Rs.50.9 lakhs crores

3. Russia- Rs.26.5 lakhs crores 4.Taiwan Rs.16 lakh crores

5. India Rs. 14.2 lakh crores 6 South Korea Rs Rs. 12.7 lakh crores

7 HongKong Rs. 11.65 lac crores 8 Brazil Rs.11.6 lac crore

9 Germany Rs. 9.2 lac crores 10 Singapore Rs. 9.1 lac crores


In the world, 108 countries have a total stock of 41,000/- tones of gold in their central banks. .Apart from this, private and institutional investors have 1,750 tonnes of gold.

Gold stock helps to store Forex and world currency exchange stock at the use of a country, at need. it is considered as best foreign exchange

Till 2006, 1,58,000/- tonnes of gold was extracted from gold mines.As one tonne gold costs about $30 crore, the approximate gold price of this extraction would be $47.4 lakh crore.


It IMF as at present has 3,217 tonnes of gold.The market value could be easily calaculated on the basis of value given above.

But the value of gold at IMF is not valued at market rate.There are various hurdles in its constitution to calculate it that way.Presently, the value is calculated at 1976 rate.


once upon a time, in 1990s, India had only Forex reserve enough for just 3 weeks. Then, having no other way,India had to mortgage its gold, to pay off its loan installments.It pledged it with Bank of England, and faced bitter criticism from opposite parties in the country..

But no Now, the situation is entirely changed.It s having so much reserve and so much gold stock. From any angle, India is now a strong economic power.

Rise in Gold price in India

Rise in gold price in the world is amazing.In the paet 9 years,gold price has increased by 400%. It was Rs.4000/-per 10grams(1$=45.5 rupees as on 17-5-2010).But now it has reached Rs.18,000/per 10 grams.It is expected that,the price will cross Rs.20,000/ mark.

Gold market in India is pushing stock market to the background.No company's stocks have raised at this speed.Price of other commodities is also rising but that of gold is up beating all expectations.

Banks selling gold

As in other countries,In India also, some government banks are selling gold in coin form and also in electronic form.People purchase it from banks also, as they have better reliability.

Still rising price

Now,one year after first publishing this hub, gold rate is still rising all over the world. Convincing point is that, stock market is also slowly rising since mid- January.We cannot say when the rising trend of gold stops. Perhaps, there will not be greater fall in the rate in future. Present rate level is almost permanent.

Raising tax on gold

By the end of 2012,gold price in India crossed Rs.30,000/-per 10 grams with 24 carrot purity.Indian Government is thinking of bringing down this craze for gold under control.So, it is also planning to take some measures to make Indians reduce this craze of theirs for gold. One such measure is-to raise the excise duty on the import of gold.

But that may not do great difference. Prior to 1977, there was tax on import of gold and more restrictions were there. Then Gold smuggling was much in practice. In order to get rid of that bad practice, Janata party government that ruled at center then,removed the control on import.

Increase in tax only further increases the price; nothing more can be achieved.



    0 of 8192 characters used
    Post Comment
    • profile image

      Stock Market 

      8 years ago

      very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand

      thank you for sharing this.


      Stock Market

    • profile image


      10 years ago

      Keep bringing us information, thankyou for this it has been very useful for what i needed it for

    • ratnaveera profile image


      10 years ago from Cumbum

      Dear Jain, Thanks for sharing this amazing information about Gold!


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)