00:00See all gold which comes of the market is imported. In this country the dependence on precious metals is very
00:11much from outside only. In the sense we get every bit of every ounce of gold which comes into the
00:17country is an imported ground.
00:20And we don't have our own source of exploring and extracting gold. There are steps being taken but yet not
00:30sufficient to meet our demand. Gold has always been a favoured investment for households whether as an asset class or
00:44for jewellery.
00:47So high pitched demand from let us say the domestic, for domestic consumption also sees a seasonal spike during festival
01:01season, during Akshayatrutiya and so on.
01:07We are watching it but I am not sure it has reached such alarming proportions given the tendency or natural
01:17things as it is in India.
01:20For investing in gold, buying gold and therefore I think it has not gone in that sense beyond a certain
01:31limit. But of course RBI will also be monitoring it.
01:36Other than that, other than typically what's happening in the Indian market, it's also important and I am sure you
01:42from the media would have noticed that most countries today, particularly their central banks, are buying gold and silver and
01:54storing them.
01:57It's a tendency when you talk of Indian consumer market, Indian households. Every central bank did have some but of
02:08late you noticed that many of the central banks outside are also buying gold.
02:11So international price of gold or silver which used to be because of China and India being large consumers of
02:21gold, largely due to domestic purchase of gold, spiking up and down.
02:27Now the spike is largely due to central banks also buying and storing. And we as importers therefore, for our
02:38domestic consumption which is a usual thing which happens every season, every festival, every household purchase, is affected because of
02:46the global increase in gold and silver prices which are much beyond the usual increases and fluctuations which happen in
02:54the gold and silver market.
02:55So I am purposely bringing in the elements of the central banks outside, domestic consumption within the country, the pattern
03:03within the country of gold purchases and the cost for that unbelievable spike in gold and silver prices which are
03:12largely because of the investments in big numbers by central banks outside the country to store.
03:18So my observation is to bring in the central bank is for saying as to why globally it is shooting
03:26up.
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