In 1991-92 - India's forex reserve was at $2 billion level which was not enough to meet import obligation for next 3 weeks. That means the country was on the verge of defaulting on its foreign obligation.
To buy the $, then finance minister Manmohan Singh and PM Narsimha Rao to take the decision of giving up 67 tonne of gold to IMF and bring in the $s.
This devalued the Rs. against $ from 17 in 1991 to 45 in 1992.
In Nov - 2009 - When IMF is selling 403 tonnes of its Gold to raise funds to support other countries of the world, India steps in an buys 200 tonne i.e. half of the quantity put on table from our healthy forex reserve of $256 billion. This adds to the current holding of 358 tonnes of gold. With this 558 tonnes of gold, India is still ranked 10th in terms of gold reserve. Coincidently same Manmohan Singh is still involved in this decision as well.
But certainly a great investment in asset and wise decision to swap the green $ (which is turning Red on monthly chart) with glittering yellow metal.
RBI purchased this quantity in last 3 weeks at average price of $1045.. This news gave the jump to gold price yesterday by more then 2.5% and new high today as well when traders found that there are much bigger gold players (central banks) ready to buy gold at $1000. There were concern that this huge supply of gold from IMF will push the gold prices down. There were also rumour that China is ready to snap major chunk of it but India/ RBI gave the surprise here.
Maybe it is time that India Inc should get smarter and set-up India sovereign fund to buy assets all over the world. Today China controls approximately 25 to 30% of natural resources in the world. If we have to grow and lead the world economy in 21st centuries then we got to take new actions now. Accumulating Gold is certainly a nice move that I support.
Please share your views as well.
To the prosperity of our country.
To buy the $, then finance minister Manmohan Singh and PM Narsimha Rao to take the decision of giving up 67 tonne of gold to IMF and bring in the $s.
This devalued the Rs. against $ from 17 in 1991 to 45 in 1992.
In Nov - 2009 - When IMF is selling 403 tonnes of its Gold to raise funds to support other countries of the world, India steps in an buys 200 tonne i.e. half of the quantity put on table from our healthy forex reserve of $256 billion. This adds to the current holding of 358 tonnes of gold. With this 558 tonnes of gold, India is still ranked 10th in terms of gold reserve. Coincidently same Manmohan Singh is still involved in this decision as well.
But certainly a great investment in asset and wise decision to swap the green $ (which is turning Red on monthly chart) with glittering yellow metal.
RBI purchased this quantity in last 3 weeks at average price of $1045.. This news gave the jump to gold price yesterday by more then 2.5% and new high today as well when traders found that there are much bigger gold players (central banks) ready to buy gold at $1000. There were concern that this huge supply of gold from IMF will push the gold prices down. There were also rumour that China is ready to snap major chunk of it but India/ RBI gave the surprise here.
Maybe it is time that India Inc should get smarter and set-up India sovereign fund to buy assets all over the world. Today China controls approximately 25 to 30% of natural resources in the world. If we have to grow and lead the world economy in 21st centuries then we got to take new actions now. Accumulating Gold is certainly a nice move that I support.
Please share your views as well.
To the prosperity of our country.
