November 04, 2009
India Buying IMF Gold
India is becoming rich. At least, the Government of India is. It's out buying gold from the IMF. 200 tonnes might seem like a lot of gold. Now, the Reserve Bank of India (RBI) has 700 tonnes of the yellow metal in its possession. But if you try to put that into perspective by taking into account the total population of India, you realize that it's not that much. Assuming a population figure of one billion, 700 tonnes equates to 0.7 grams for every Indian. Similarly, a population figure of 1.1 billion means some 0.63 grams of gold for every Indian. Also, a population figure of 1.2 billion translates to 0.58 grams of gold for every Indian. Well, you can check that out yourself. My arithmetic might be wrong.