“World Gold Outlook 2020” has been released by World Gold Council in which it placed Reserve Bank of India on 6th position in the largest buyer of sovereign gold abroad. RBI currently holds 625.2 tonnes of gold which is 6.6% of the country’s foreign exchange.
The other 5 countries that have bought more gold than India include China, Russia, Kazakhstan, Turkey and Poland. Higher taxes have exacerbated the local gold price consumption. The recently introduces new hallmarking reforms are expected to increase consumer trust, remove inefficiencies, promote growth and improve confidence.