The Reserve Bank of India announced on (October 29.2024) to transport additional 102 tons of gold from Bank of England to its secure location in India.

Total reserve of gold held by RBI are 855 tones. From 855 tones a reserve kept on Indian soil are 510 tones. There are much reason why RBI has changes his strategy to move its gold to Indian soil. One and the most important is a geopolitical risk. India as part of BRICS will have to ensure stability in its economy in time where currency dips in value, gold typically rises this enable central banks to protect their reserves at time of market volatility.

This year in May, India announced that had already moved 100 tons from the UK, which represented the most significant repatriation of gold since the 1990s. In the 1990s, the Indian government pledged gold to foreign banks in case of a balance of payments crisis. After 30 years, India’s plans have changed, so today their policy aims to secure wealth, not to use gold for emergencies.

From September 2022, India has repatriated 214 tons of gold. Many speculations are circulating among the people of India that World War III is possible, which is another reason to return all the gold assets. It might be a rumor, but for sure, there is something behind that has triggered such move of RBI. According to government officials those reserve add an extra layer of security amid uncertain gold condition. Watching the price of gold with forecast anticipating in the next year, we will see 10 to 13 % increase.

For now Bank of England and the Bank of International Settlements, keep 324 tons of India’s gold reserve safe. RBI holds now 60% of its total gold reserve domestically.