- In India, gold is widely used to make jewelry, worship to gods and be used in luxury weddings.
- The Indian Geological Survey said the amount of gold "is approximately 160 kg and not 3,350 tonnes as mentioned in the media."
- Last week, the price of gold in the U.S. futures market rose 0.4%, to close at $1,579.50 per ounce.
Indian government officials said on Saturday that India had discovered gold deposits with reserves of more than 3,000 tons in Uttar Pradesh, India’s most populous state. India is the world’s second-largest consumer of gold, withdrawing two to three tons of gold each year, and relying on expensive imports to meet almost all local demand. Over the past decade, India has averaged 843 tons per year.
In India, gold is widely used to make jewelry, worship to gods and be used in luxury weddings. India’s import cost last year exceeded $31 billion, making gold the second-largest importer of minerals after crude oil. Roshan Jacob, head of Uttar Pradesh’s mining department, said that after more than a decade of investigating the Sunbhadra area in the north, the state and state governments have found traces of gold in the area.
“The mineralized zone having an average grade of 3.03 grams per tonne of gold is tentative in nature and the total gold which can be extracted from the total resource of 52,806.25 tonnes of ore is approximately 160 kg and not 3,350 tonnes as mentioned in the media,” the director-general clarified. He said the area had a gold concentration of about three grams per ton of raw ore, and the state was working with the Indian Geological Survey to determine the amount of gold that could be extracted from the field.
India has repeatedly studied plans to revitalize a group of colony gold mines in southern Karnataka, but the project has not been exposed due to weak speculative production and high costs. According to the beliefs of most people, the Indian people consider themselves one of the most enthusiastic consumers of gold. It symbolizes kindness and blessing, and the best way to invest.
Gold exists in many religious and social settings because it is worshipped as a deity. It is also used in traditional weddings, which requires the bride to wear jewelry. The light of these jewels guarantees the future life of the wife, because gold symbolizes their social status, and spreads happiness and beauty to all people, especially women.
Every year an increase in gold demand proves the enthusiasm of Indians for gold. Gold demand increased to 850 tons last year, compared with 760 tons in the previous year. An individual holds an estimated 2,500 tons of gold, the highest ratio in the world, and its value accounts for 40% of the country’s GDP.
According to economists, government and social efforts have failed to convince people to change their habits that are rooted in excessive consumption and storage of gold. This explains its continued rise in market prices, which has allowed India to compete at the global gold market level.
Price of Gold in US Futures Rises 0.4%
Last week, the price of gold in the U.S. futures market rose 0.4%, to close at $1,579.50 per ounce. The price of gold in real-time trading reached $1,574.87 per ounce, a 0.4% increase from the price at the beginning of the trading session, the highest since last year.
Among other precious metals, palladium rose 1.3% to $2,346.20 per ounce, silver rose 0.7% to $17.80 per ounce, and platinum rose 0.3% to $961.92 per ounce.