InvestorQ : How big is the gold market in India?
swati Bakhda made post

How big is the gold market in India?

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Dia Deshpande answered.
1 year ago

To begin with, India is the second largest market for gold after China. Within India, Kerala continues to be the biggest market for gold and accounts for a large chunk of all India demand each year. In fact, Gold per capita consumption in Kerala is 6 times the size of the second largest consuming state of Goa. India annually consumes nearly 800 to 900 tonnes of gold. Indians are great collectors of gold. It is estimated that Indian households own nearly 22,500 tonnes of gold and has a value of nearly $1 trillion.

As a precious metal, gold is literally as old as man. In fact, every ounce of gold that has been mined since the beginning of history is still in existence in some form or the other. That is, perhaps what makes gold one of the most sought after metals in the world! Some of the world’s largest central banks hold a good chunk of their forex reserves in the form of gold. For many years, at least till the gold standard was formally abandoned in 1971 by Richard Nixon of the US, gold was used as a backing to issue currency. But above all, gold is the metal of choice for the massive jewellery demand across the world and India and China remain two of the world’s largest consumers of gold. Such an interesting commodity with a rich lineage is also available to trade on the commodity exchanges…