South Korean media: Indians have become rich due to the sharp rise in gold prices!
On October 12, South Korean media "Herald Economic" published an article stating that the recent sharp rise in gold prices has reached a new historical high. An analysis shows that the value of gold held by Indian families is currently about $3.8 trillion. The analysis indicates that due to the unique gold culture, the gold holdings accumulated over generations have surged, creating a "wealth effect" on the financial situation of ordinary Indian families.
Recently, a report from Morgan Stanley analyzed that Indian families hold approximately 34,600 tons of gold. This is nearly three times the amount held by Chinese families. As of 2023, China's private gold holdings are approximately 12,349 tons. Compared to the gold reserves held by central banks, the scale of India's household gold reserves is at least four times larger. According to Trading Economics statistics, the ranking of countries with the most gold holdings based on central bank holdings is as follows: the United States (8,133 tons), Germany (3,350 tons), Italy (2,452 tons), France (2,437 tons), Russia (2,330 tons), and China (2,299 tons). The Indian central bank holds 880 tons, while the gold held by Indian households is about 39 times that amount.
Morgan Stanley stated that due to the recent sharp increase in gold prices, the value of gold assets held by Indian households has reached approximately $3.8 trillion. Morgan Stanley said, "With the trend of rising gold prices, Indian households holding large amounts of gold are generating a positive wealth effect on their balance sheets."
In India, gold is not just a simple investment asset; it is deeply rooted in the entire culture, religion, and society. Families use gold as long-term savings and a financial safety net for emergencies, while also gifting it during weddings and celebrations as a means of intergenerational wealth transfer.
This year, gold prices have risen by more than 50%, reaching a historical high of over $4,000 per ounce, the largest increase since 1979. Large-scale purchases by central banks, heightened geopolitical tensions, and the Federal Reserve's interest rate cuts have driven up gold prices. Most of India's gold is also imported, so local prices reflect world market conditions accurately.
Since 2024, the Indian central bank has also added about 75 tons of gold, increasing its total holdings to 880 tons, accounting for about 14% of India's foreign exchange reserves. Morgan Stanley analyzed that the wealth effect brought by the rise in gold prices coincides with the Indian central bank's interest rate cut cycle and the government's reduction of consumption tax, further expanding it.
Original: www.toutiao.com/article/1845776365614090/
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