Friday, December 18, 2009

World's Largest Gold Reserves - Article

On September 18, 2009, the IMF's executive board approved gold sales strictly limited to 403.3 metric tonnes, representing one eighth of its total holdings, in a bid to increase the (Washington-based) financial institution's capacity to lend to poor nations.
The International Monetary Fund has sold 200 metric tonnes of gold to the Reserve Bank of India for about $6.7 billion. This new purchase puts India gold reserves in the 11th spot among the world's leading gold owners.
Subsequently IMF sold 10 tonnes to Srilanka and 2 tonnes to Mauritius.
Worlds Largest Gold Reserves:
1. US – 8133.5 tonnes
2. Germany – 3408.3 tonnes
3. IMF – 3005.3 tonnes
4. Italy – 2451.8 tonnes
5. France – 2445 tonnes
6. China – 1054 tonnes
7. Switzerland – 1040 tonnes
8. Japan – 765.2 tonnes
9. Russia – 639.8 tonnes
10. Netherlands – 612.5 tonnes
11. India – 557.7 tonnes
Most countries including India and China—the two largest gold consuming nations in the world—have US dollar as most part of their foreign exchange reserves kitty. Now, China, India and other countries want to move away from dollar to gold, for all perceive gold as a stable currency than a hot commodity.
Top Buyers of Gold:
1. India
2. China
3. US
Top Producers of Gold:
1. China
2. Australia
3. US
Difference between India and China:
The most aggressive player in the gold reserves game these days is, of course, China. Though China is not keen to buy gold from IMF at the high price that gold is ruling these days, the People’s Bank of China is stepping up efforts to build up gold reserves by buying the yellow metal from the market and taking various initiatives to increase gold mining across the country. China has targeted to mop up a whopping 10,000 tonnes of gold reserves by 2020.
At the recent Elections in India (April-May 2009) you have Noticed/heard the lines saying that “China Buys Gold, India Buys Votes”.
The Indian politicians spent an estimated Rs 10,000 crore to buy the votes. China, meanwhile, has just announced that it has bought gold of 454 tonnes.
China is tired of owning US government debt which may be worthless pieces of paper. So China is busy buying all kinds of real, hard assets. They are buying iron ore mines; copper mines; and rumour has it they are keen to buy agricultural land, but not so that they can bribe someone and have it converted to build an SEZ(Special Economic Zones were started/founded in China in early 1980’s and the most successful SEZ in China is ‘Shenzhen’ has developed from a small village into a city with a population over 10 million within 20 years). And China is buying more military equipment, too.And now they are gobbling up gold. 
India is the “Land for Rising SON’s” that means…Take for an example our Indian Prime Ministers…Jawaharlal Nehru, Indira Gandhi, Rajiv Gandhi and Now Rahul Gandhi. Indian Politicians( major) thinking will be on who will become the next Prime Minister and when the next elections will be held and to tie-up which party during elections and more over politicians contesting in elections for their self benefit.
In India, only 44% villages have power. On the other hand, 99% of China’s villages are powered.
Examples where India is lagging:
Olympics in 2008:
China got 51 gold medals 21 Silver and 28 Bronze medals. Whereas India got 1Gold Medal and 2 bronze Medals and No Silver Medal. If India had spended (money) atleast 10% - 15% in Sports what they have used during elections India have won many medals.
Black Money:
Is India is Poor? Who says go and ask/verify Swiss Bank personal accounts. Indian Black Money in Swiss Banks currently/approximately holds $1456 billion or $1.4 trillion (converting into Indian Rupees = 7200000000000/- in words 72 lakh Crores when 1$=50 Rs) as on Swiss Banking Association Report 2006(Now it has crossed even more.) an amount 13 times larger than the country's foreign debt. With this amount 45 crore poor people in India can get Rs 1,00,000 each. 
Next place goes to Russia - $470 billion, UK - $390 billion, Ukraine - $100 billion, and China - $96 billion.
India recently asked the Swiss Government to reveal the Indian Accounts held in Swiss Banks. But the Swiss Government has snubbed India by throwing its weight behind the practice of 'protecting the privacy of clients' at its banks. 
Coming to Defence:
Active Military Troops in China: 2,225,000 Active Military Troops in India: 1,414,000.
Military Spending by country in 2008-09:
1. US - $607 billions
2. China – $85 billions
10. India - $30 billion
I am not comparing with US. Because US is already a developed country. But both China & India are developing countries. But China is growing more fast than India that it may surpass Japan to become the second largest economy in the world in the coming few (2 or 3) years according to financial experts whereas India will become third largest economy by 2050. Still 40 years to go. China already 3rd largest economy in the world(2009).
We have got Independence before China. India got Independence in Aug 15th, 1947. China got in Oct 1st, 1949.
Don’t think that I am against/blaming India. I am also an Indian. But need my Country to improve a lot. No Doubt India is the Worlds Largest Democracy in the world when compared to no other country in the world until China leaves Communism.
Note: If you like this article please spread this and let to know your friends/colleagues/etc. If you don’t like please ignore it.


dibyajit bordoloi said...

It is true Varun that "China Buys Gold, India Buys Votes". though both are developing countries, still china is much ahead of India. They mainly aims at the countries progress, but in India they focus on Who will be next PM (obviously from Gandhi parivar), im sentimental in this regards so i wana FCKU these polticians, dont mind i use slang. But truely i wana ....????? poor people are suffering a lot and become poorer and poorer in the other hand rich became richer, they r much worry about the reimbursement of their family trip to foreign how disgusting...

Anonymous said...

Its really true and so nice. Me too striving for a better India. Thank u for ur thoughts.