In the earliest days of chemistry, there were those who tried to turn base metals into gold. Could there be a skilled alchemist today, using those magical secrets of long ago to control the amount of gold bullion in India today?
India has had a long association with this precious metal – it is still used in traditional ceremonies and rituals which form an essential part of all Indian religions. And today, anyone trading in gold must monitor gold rates very closely, as sooner or later; most of the religions in India will have need of the gold trader’s services. Therefore, keeping an eye on gold rates is critical for him.
There are visible examples of the importance of gold in Indian religion today – the Golden Temple in Amritsar, (a “gurdwara” which is a Sikh place of worship) has a dome which is covered in gold. In weddings of South India, the women are covered with gold from head to toe and the bride wears twice as much gold as the others. Gold is treated with the utmost reverence in the ancient Scriptures, which has a continual effect on the gold rates.
If you are Indian, living within India, you will need to know about gold rates. At some point in your life you will buy gold and an awareness of the gold rates becomes essential. And of course, if you are a gold trader or invest in the bullion market, the gold rates are particularly important to you.
In India, gold is the option of choice when it comes to gift-giving, proving again that knowledge of the gold ratesis a necessary requirement. A gold sovereign – a solid gold coin, weighing about two grams is considered an appropriate gift for a birthday or an anniversary because the recipient can have it made into anything he or she desires. As we have seen, Indian wedding guests traditionally wear gold jewellery pieces such as anklets, necklaces or bracelets and these are the gifts of choice for the wedded couple. Therefore, knowledge of the gold rates is required for almost everyone, as at some point, they will be purchasing gold.
Considering the above, you would think that gold is plentiful in India and anyone can buy it. But the laws of the country do not permit large quantities of gold to be imported, thus creating an enormous demand for it. Prices do not fall, making it one of the safest long-term investment options. Therefore, daily updates on gold rates benefit everyone.
Of course, gold rates is determined by buyers, sellers and investors all over the country and as gold is a valuable commodity, people (particularly Hindus) are reluctant to sell it, keeping the gold rates high. People in India always want to buy gold; gold prices indicate the constant demand for the metal. You may ask that if the demand is so high, why the Indian Government limits the import of gold into the country.
A closer look will show you that it is the Reserve Bank of India which is responsible. It regulates the money inflow and is the issuer of banknotes in the country, making it responsible for the stability of the Indian economy. As in all countries, the Regulatory body controls the spending habits of the nation’s citizens by offering incentives to those who deposit into fixed financial vehicles in times when inflation threatens the economy – and encourages spending by lowering the interest rate on loans in times of recession.
And this same non-profit organization also restricts the gold imports into the country to maintain economic stability. Since 1997, the Reserve Bank of India has authorized thirteen banks to import gold. Currently, about 600 tonnes per year are imported but reliable estimates indicate that the annual demand for the metal is about 800 tonnes.
So, just what is the Reserve Bank of India? Established on April 1, 1942, it was nationalized on New Year’s Day, 1949. Originally owned by private shareholders, its nationalization resulted in the total acquisition of the shares and the original shareholders were appropriately compensated. The Reserve Bank of India is the Government’s Bank and is the bank to all the country’s banks, with a reputation for being the strongest and most responsible organization in India.
