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Banks Have Reduced Supply Of Gold In India: Reports

World Bank President, David Malpass said that, the way India has provided help to the poor and needy people during the covid 19 pandemic crisis is extraordinary

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As per some media reports, gold supplying banks have reduced the supply of gold in the country just before the festive season. In this situation, there is less supply than the demand for gold and there is an apprehension that customers buying gold during the festive season may have to buy gold at a premium. 

According to media sources, this year, less gold is kept in the chests of major banks such as ICBC Standard Bank, JP Morgan and Standard Chartered, which supply gold to the country. Usually, these banks used to increase the quantity of gold in their vaults before the festive season, although this year banks are increasing the supply of gold in those countries where they are getting more profits. Due to this the supply of gold in India has decreased.

If the demand in the market during the festive season is more than last year, then customers will have to pay more money than before. According to official sources, at the beginning of the festive season, a few tonne of gold used to remain in the safes of the banks. This year this quantity is only in a few kilos. That is, if someone wants gold, they will have to pay a higher price.

China and Turkey are the main reasons for the decrease in the supply of banks. Actually, the demand of these countries has increased due to their domestic conditions. Along with this, the premium received on gold has also increased. 

According to the report, gold in India currently has a premium of USD 1 to 2 an ounce, which is less than last year's premium of USD 4 an ounce. At the same time, with the boom in demand after the pandemic in China, the premium has increased to USD 20 to 45 per ounce. In Turkey it is up to USD 80 per ounce. There is a sharp jump in the inflation rate in Turkey and there is a lot of pressure in the economy, due to which the investment demand for gold in Turkey is very high. Due to such high premium in other countries as compared to India, banks are diverting their supplies to other countries, which may see pressure on prices at domestic levels.

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gold bank gold supply