The Indian Gold Market - An Infographic from BullionStar

BullionStar's picture

The Indian gold market is one of the world’s largest and most extensive gold markets, with an estimated 23,000 tonnes of privately held gold within India’s borders. In India, gold is revered and held as a traditional form of savings and wealth preservation, particularly in the form of gold jewellery. With minimal gold mining production, Indian gold demand is predominantly met by gold imports, both official and unofficial (smuggling).

Unlike China, where the Chinese government actively encourages its citizens to invest in physical gold, in India the government wages a constant War on Physical Gold. Despite this war, Indian citizens largely ignore their government and continue to purchase physical gold in large quantities.

This infographic guides you through the following characteristics of the Indian Gold Market:

  • Gold held in India versus other major gold holding countries
  • Gold Price Quotation standards in India
  • Sources of Gold Imports into India, both fine gold and doré gold bar imports
  • Gold Smuggling into India
  • The Drivers of Indian Gold Demand
  • Gold Trading Volumes on India’s commodity exchanges, the MCX and NCDEX
  • The Indian Government’s constant War on Gold

Further information about the Indian Gold Market can also be found in BullionStar's Gold University gold market profiles.


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Treason Season's picture

I've bought gold in a couple countries but never India. Sorry but with all due respect the thought of trusting a jewler in India imo is difficult. Does anyone have a first hand experience? Who to trust? What to look out for?  Namaste and dhanyabad

SubjectivObject's picture

What's the private ownership tonnage for the US?

Latitude25's picture

In a normal world centuries of excess production of goods converted into hard money (gold) and distributed among a country's population would be defined as an account surplus.  Whore bankers have redifined reality and called it an account deficit so they can loot human productivity.  The Indians figured out this scam centuries ago.

bluskyes's picture

I think that "current account deficits"  need to be called "continual account deficits"

brooklinite8's picture

That is Suresh Raina getting married. Nice picture. He used to be really good finisher. Not so much anymore. Family, Money and Age change lots of people in lots of different ways. 

lalit's picture

The private gold reserves mentioned in the report are way 2 low. The state where I live would have over 15000 tonnes of reserves. India has been consuming Gold since 1000s of years. We been through it all.  Actual private gold reserves in India would be near 50000 tonnes

Latitude25's picture

How well is the government controlling gold consumption now?  Have they reduced it a lot or do they have very little influence over demand?

East Indian's picture

Government controlling is slowly becoming effective. Mainly in two ways: MCX paper 'gold' contracts, and propaganda. Due to porpaganda, urban youth do not consider gold as a saving option. Till about 2014, banks used to sell gold; now that is stopped. In my estimate, govt efforts have reduced the gold imports by 10%.


jfb's picture


Do you have some sources that I could use to check your estimations?

I never visited India but so far I got the impression that the Indians almost never sell their gold, even if they face economic hardship, so they would be huge savers in a certain sense

Stuck on Zero's picture

India has had a major love affair for gold for centuries partly because of their divorce laws. The wife can walk away from a marriage with whatever she has on her back.  Naturally, gold jewelry becomes an insurance against having your husband run away with another woman.