Countries all over the globe are building their gold supply and India is no exception. Unsurprisingly, Prime Minister Narenda Modi is trying to gain control of a tremendous amount of gold. His current target for sourcing that gold is from some of India’s most sacred temples. It has been estimated he could grab up approximately 3,000 tons from said temples.
The temple gold is believed to be more than two thirds of the U.S. gold bullion held at the Fort Knox depository in Kentucky. Prime Minister Modi has his eyes on the gold in an attempt to help re-balance an Indian trade deficit issue that has become a growing problem in recent years.
The Shree Siddhivinayak temple in Mumbai, built in honor of the Hindu elephant god Ganesha, is protected by 65 security officers around the clock. Security is so tight because it is believed to contain nearly 160 kilograms of gold valued at $67 million in today’s international gold market.
Prime Minister Modi’s plan for the gold would involve the temples voluntarily depositing it into banks. In return, the temples would receive interest payments on the deposited gold. Indian officials would then melt the gold and loan it to Indian jewelers. This would satisfy their immense demand for gold bullion and drastically reducing the level of gold imports into the country which have been crippling the Indian economy.
These gold imports have accounted for nearly 30% of India’s trade deficit and could, according to Modi, be cut by 250 tons per year with this acquisition strategy.
Join our newsletter:
Connect with us
Click a link below to add us to your favorite social media channels.