India Has Increased Its Imports of Gold From Latin America
At the end of October 2024, the Reserve Bank of India (RBI) gold reserves stood at 854.73 metric tons. According to reports, the gold reserves have increased by 236.73 tons compared to 618 tons in 2019. This represents a significant increase in the domestic gold reserves, which have risen to 60% of the total reserves, from 40.8 tons to 51.046 tons since the end of March.
On May 31st, 2021, the RBI returned 100 tons of gold to their premises from the United Kingdom, the first time since 1991 that precious metal has been returned to Indian vaults. This move demonstrates the commitment of the government to maintaining a strong gold reserve and ensuring the stability of the Indian economy.
India, as one of the world's largest consumers of gold, produces virtually none of its own and meets most of its demand for this precious metal through imports. At the end of the first half of 2024, the country imported nearly 305 tons of gold worth $19.1 billion in physical terms. Volume increased by 5% and value increased by 17% compared to the same period last year. Gold imports in August 2024 doubled those of August 2018 and tripled those of July 2020. According to Indian media reports, this represents an all-time high.
Additionally, it has been reported that exports from Peru to India will increase by 36% year-on-year to a record $3 billion due to growing demand from New Delhi. The Peruvian ambassador to India, Javier Manuel Paulinich Velarde, stated that imports of precious metals from Peru rose 81% year-over-year during the first six months of 2022 to $1.5 billion. Additionally, India has become a significant purchaser of Argentinian gold.
Argentina's mining exports increased by 33.8% year-on-year in September and are up 7.7% since the start of the year, representing a 15.1% increase compared to the average for the period 2010-2023. During the first nine months of 2024, shipments of metals accounted for 82% of total exports, with the remaining 18% going to Canada, Belgium, South Korea, Chile, and Germany. In August 2024, India purchased gold worth $3.13 billion from Bolivia, bringing its total gold imports over the past seven months to $22.234 billion, a 12% increase compared to last year.
India's demand for gold is expected to grow in the future, thanks to a reduction in custom duties on gold that took effect on July 1, 2022. These duties were lowered from 15% to 6% for regular gold and 14.35% to 5.35% for gold dore, marking a historic low. These rates have not been lower than 10% in nearly 11 years.
India, as one of the world's largest consumers of gold, produces virtually none of its own and meets most of its demand for this precious metal through imports. At the end of the first half of 2024, the country imported nearly 305 tons of gold worth $19.1 billion in physical terms. Volume increased by 5% and value increased by 17% compared to the same period last year. Gold imports in August 2024 doubled those of August 2018 and tripled those of July 2020. According to Indian media reports, this represents an all-time high.
Additionally, it has been reported that exports from Peru to India will increase by 36% year-on-year to a record $3 billion due to growing demand from New Delhi. The Peruvian ambassador to India, Javier Manuel Paulinich Velarde, stated that imports of precious metals from Peru rose 81% year-over-year during the first six months of 2022 to $1.5 billion. Additionally, India has become a significant purchaser of Argentinian gold.
Argentina's mining exports increased by 33.8% year-on-year in September and are up 7.7% since the start of the year, representing a 15.1% increase compared to the average for the period 2010-2023. During the first nine months of 2024, shipments of metals accounted for 82% of total exports, with the remaining 18% going to Canada, Belgium, South Korea, Chile, and Germany. In August 2024, India purchased gold worth $3.13 billion from Bolivia, bringing its total gold imports over the past seven months to $22.234 billion, a 12% increase compared to last year.
India's demand for gold is expected to grow in the future, thanks to a reduction in custom duties on gold that took effect on July 1, 2022. These duties were lowered from 15% to 6% for regular gold and 14.35% to 5.35% for gold dore, marking a historic low. These rates have not been lower than 10% in nearly 11 years.
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