We're almost at the half of the year, this is the time for most of the countries to implement the new years budget roadmap or evaluation oof the past fiscal year's economic performances. Which means it's time to look back at all of the wins and losses and make a new plan for the next year with a better way to make up for the losses of the last year. Making sure the govt. is financially stable and capable to achieve its main goals. And I was stucked by the news that India is bringing back 100 tons of gold to India, and it reminds me the other incidents of buying gold by the banks everywhere, selling massive dollars by China and many thoughts that I am going to talk about.
Traditional investments, such as stocks and valuable metals, have been leading the way as the best ways to store your money for a long time. In addition, new digital assets like Bitcoins and NFTs are becoming more popular. These assets are saved in the blockchain and are often easier to move and get cash for than the volatile market. Even though the end of the year looks good, there is still a lot of uncertainty everywhere! The top coin (BTC) has gained solid growth, the top metal (gold) is becoming more popular and China sold billions of their dollar to dump it as a process of de-dollarization.
As a good partners with Russia, China, India is also playing the game silently to avoid dollar dominanncy in trades which is increasing rapidly among these three countries with other countries are also coming forward. The Indian government brought back 100 metric tons of gold from England and brought it back. People in different parts of India are starting to wonder where this gold came from. Why did India's government keep this gold in another country? Besides that, it is said that India will get even more gold in the next few months. Whatever the resason, I am noticing that these countries are storing gold to their banks in recent years which is not a good sign for the existing economic system worldwide.
I think something will gonna be happend that will bring a massive changes in the world economy. Storing gold or de-dollarization is just a factor that will make the changes faster than later. This gold was taken from India when India had an economic problem in the 1990s, which is why this is the case to preserve it in the foreign countries. The Hindu says that current events in world politics are also thought to have an effect on getting gold back.
If I recall the history behind the story then the Fuel price was the reason for Indian government wanted to get dollars during 1990s. Iraq was attacked by US caused the price of oil to go up considerably and India has an oil problem that time because India used to get most of its oil from Iraq. To buy oil at a higher price, enough dollars were needed, but the Indian economy was shut down at that point.
For that reason, India had to borrow money from the World Bank and the International Monetary Fund (IMF). But if you want to borrow money from these two places, you have to agree to a set of a lot of unwanted terms. India then began looking for other ways to get there. It is planned to borrow gold by putting it up as collateral in foreign banks. It was hard to keep the gold in any other foreign bank without drawing US attention to it, though. India puts gold in the Bank of England and the Bank of Japan. In turn, he got dollars. The Indian government tried to keep this a secret, but some media got the word out.
The central bank of India The Indian Reserve Bank now has 822 metric tons of gold. It has bought 203.9 metric tons of gold in the last five years, and some of it is kept at the RBI. It is known that these gold bars are stored in nine large vaults below the Bank of England. In that room are not only Indian gold coins, but also coins from other countries.
India has very good relation with USA and made significant developments in the economy in recent years. Because of the India-USA relation, the Indian market has transformed from the tight one to the open one. India's economic growth rate was very low because of these things. India finally went to the IMF after the crisis and India was able to make economic success by following their rules and regulations.
People are talking about why India decided to bring back gold. A lot of countries, including the US and UK, are thought to have put bans on Russia during the war between Russia and Ukraine. Russia's gold savings in banks outside of Russia have been taken away. A lot of countries are thinking about what they can do instead right now. Some people are worried that India has also started to think about the future.
So, every countries are very conscious about the world economy nowadays and they are acting accordingly. So, what do you think of these incidents like buying golds, storing in the own country and selling dollars to dump. Give your thoughts in the comments for mutual knowledge sharing.
Thank you very much for your time and attention, I wish to catch you at the next.
Have a nice day.
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