India’s Reserve Bank of India is buying gold in huge volumes

India’s total foreign exchange reserves were $690 billion as of May 9, with $86 billion in gold, accounting for 12.46% of the country’s total forex reserves. The share of gold maintained by the Reserve Bank of India in its foreign exchange reserves has almost doubled since 2021.

Gold, one of the rarest elements found in the Earth’s crust, has stood the test of time over thousands of years. Gold, a versatile element, is used in various industrial applications beyond its wearable status. However, what distinguishes it from all other asset classes is its reputation as the ‘bedrock’ of safe-haven wealth. It’s not just people, but even institutions hold a portion of their savings in gold. India’s central bank, the Reserve Bank of India (RBI), has a significant amount of gold holdings. What’s more, the RBI has been aggressively buying gold over the past few years.