News India Live, Digital Desk: The inclination of major countries around the world, including India, is moving towards gold rapidly. In FY 2024-25 (FY25), the Reserve Bank of India (RBI) procured 57.5 tonnes of gold, which is the second largest annual purchase in seven years. Earlier, in FY22, RBI bought a record 66 tonnes of gold.
Why is investing in gold?
There are many major reasons for investment in gold globally:
- Safe investment: Gold is considered a safe option in the era of economic instability and inflation.
- Dollar volatility: The importance of gold increases further during US dollar fluctuations.
- Decline in American bonds: Due to low attraction of US Treasury Bond, central banks are now becoming more dependent on gold.
How much did India have a gold reserve?
By March 2025, the total gold reserves with RBI have increased to 879.6 tonnes, compared to 822.1 tonnes last year. RBI has been continuously increasing gold reserve due to geopolitical tension, dollar fluctuations and global economic instability over the years.
Trump’s victory increased demand
After Donald Trump was elected US President in November 2024, there was a huge instability in the dollar, increasing the demand for gold rapidly. According to experts, the central bank is investing in gold due to a decrease in American Treasury Bonds.
Gold stake in foreign exchange reserves
Gold stake in India’s foreign exchange reserves has increased to 11.8% by April 2025, which is a significant increase compared to the previous year. During this time, gold prices have seen a rise of more than 30%. RBI is now one of the world’s top 10 largest gold reserved banks.
Gold protects against dollar volatility
According to the RBI report, the aim of the gold reserve management is to ensure safety, liquidity and maximum returns. Gold proves to be a stable property in an era of economic uncertainty, inflation and currency fluctuations.
Recently decreased RBI’s gold purchase
According to recent reports, RBI’s gold procurement of RBI was stalled between December 2024 to February 2025, while the purchase in January and March 2025 was below the last monthly average. This reveals the vigilant approach of RBI.
Globally procurement of gold
In the year 2024, the world’s central banks bought a total of 1,045 tonnes of gold. Poland was the largest buyer with 89.54 tonnes, while India finished second with 72.6 tonnes. The US still tops the gold reserve with 8,133.46 tonnes. India’s emphasis is now on keeping its gold reserves safe within the country.
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The Post World Gold Council Report: Countries around the world increased the attraction towards gold, RBI bought 57.5 tonnes of gold first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
