‘We have seen it before…Gold is going to shine’: Why Anil Agarwal wants India to produce more gold

Anil Agarwal is assured about gold’s trajectory, citing predictions of costs surpassing $3,000 per ounce amidst international financial instability.

US President Donald Trump wants America to ‘Drill baby, drill’ for oil. In India Vedanta chairman Anil Agarwal has echoed the same sentiment – however for gold! In a current submit on X (previously Twitter), Anil Agarwal has expressed optimism about gold costs, and has stated that this is the ‘best time for India to revive and revitalize its existing gold assets’
Anil Agarwal is assured about gold’s trajectory, citing predictions of costs surpassing $3,000 per ounce amidst international financial instability. The Vedanta chairman shared this within the submit, highlighting the valuable metallic’s conventional function as a safe funding possibility and inspired India to seize the chance.
“This is the best time for India to revive and revitalize its existing gold assets,” stated Agarwal, speaking concerning the stark distinction between India’s substantial imports of 800 tonnes yearly and its minimal home manufacturing of simply 1 tonne. He advised that escalating costs would naturally entice funding in the direction of native mining operations, making gold extraction economically possible in shorter intervals in contrast to new initiatives.

India continues to face challenges with substantial gold import bills that influence its international alternate reserves. Despite possessing appreciable unexplored gold deposits, the nation’s manufacturing stays low due to administrative boundaries, inadequate infrastructure, and historic coverage constraints, in accordance to an ET report.
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Gold costs confirmed optimistic motion on Monday, with safe-haven demand strengthened by worries over US President Donald Trump’s anticipated reciprocal tariffs and attainable Federal Reserve rate of interest reductions this yr.
According to the RBI’s Friday announcement, gold reserves rose by $66 million to $74.391 billion within the week ended March 14.
RBI has considerably elevated its gold purchases, buying 72.6 tonnes in 2024, quadrupling its earlier yr’s procurement. The RBI’s gold holdings now stand at 876.18 tonnes (valued at $66.2 billion) as of December 2024. India ranks amongst main central financial institution gold purchasers, following Poland and Turkey, amidst foreign money instability submit Trump’s electoral victory.
The RBI has intensified its gold acquisitions to defend towards foreign money fluctuations and revaluation dangers, moreover utilizing reserves to assist the rupee towards greenback actions. The 2024 gold acquisition marks the best since 2021 and represents the second-largest quantity because the RBI recommenced gold purchases in 2017.