What are India’s precious metals?
RYDEX : India’s largest gold producer is expected to be a big beneficiary of the new government’s policies on gold.
The government plans to increase the supply of gold to around 6.5 tonnes from 4.1 tonnes, a decision that is likely to boost its gold demand.
The country’s gold reserves are currently at about 2,300 tonnes.
It is expected that gold production will be boosted by the decision.
Indias gold production has been declining for years.
Last year, the government said it would raise the gold standard and increase the minimum supply of the precious metal by one troy ounce.
The gold price has fallen to less than $1,300 an ounce, which has led to a sharp drop in demand.
India’s government says the drop is due to domestic production issues and a reduction in demand due to the new gold standard.
The government has also announced plans to sell the remaining reserves of the country’s silver mines.