Gold is more than just a shiny metal used for jewellery. In the business world, it is considered a safe haven asset that people buy when there is uncertainty in the global economy. According to the World Gold Council, gold production is at record levels as countries race to dig up this precious metal. In 2024, the global map of gold production showed a few clear leaders. China remained the world leader, producing about 380 metric tons of yellow metal. China has held the top spot for over a decade running into 2024, driven by operations by the country’s large government-owned companies. The Chinese accounted for around 10% of total global production of the precious metal. Following closely behind are Australia and Russia, with the latter producing around 330 metric tons and former 284 tons in 2024. Russia stays in the top bracket despite global trade challenges, as its massive mines continue to churn out high volumes. Canada and the United States (US) also feature in the top five, making North America a very important region for the gold market. India’s gold mining story: India has a long and famous history of finding gold, but for many years, the work has been carried out at a snail’s pace. In 2020, India produced only about 1.6 tonnes of gold—a tiny amount compared to how much gold the country actually imports and consumes. Why India’s gold production is so low? The main problem wasn’t a lack of gold mines. Instead, it was red tape. Laws and complicated paperwork made it very difficult for companies to invest in new mines. Because it takes a long time to build a mine, these problems kept India’s gold industry from growing. To fix this, the Indian government had introduced new policies, like the 2019 National Mineral Policy. These new rules aim to: Karnataka accounts for 88% of India’s total gold reserves Most of India’s gold potential is in the southern part, especially in the state of Karnataka. This region is home to the two most famous names in Indian gold: Kolar Gold Fields (KGF): This was once one of the deepest and richest gold mines in the world. It produced over 800 tonnes of gold before closing in 2001. Recently, there has been a plan to reopen KGF to extract gold from the old waste piles using modern methods. Hutti Gold Mine: Located in Karnataka, this is currently India’s only major active gold mine. It has enough gold to keep producing for at least another 30 years. Rajasthan, on the other hand, has the second-largest gold resources in the country. India sitting on a gold mine of opportunity Experts believe India is sitting on a gold mine of opportunity. New discoveries have recently been reported in states like Odisha, Madhya Pradesh, and Andhra Pradesh. While it will take time for these new policies and mines to show results, the goal is clear: by making mining easier and using better technology, Indian government wants to restart its ‘Gold Rush’ and boost its economy. Indians have more gold than even their country’s GDP The total value of gold held by Indian households had recently crossed $5 trillion or ₹450 lakh crore. This figure is even more than the country’s total GDP of $4.1 trillion or ₹370 lakh crore. This has happened due to gold prices reaching record highs. According to a Morgan Stanley report, Indian households have accumulated approximately 34,600 tons of gold. Post navigation 15 banks get new license to import gold and silver:SBI, PNB HDFC Bank included in the list
