These three Kerala companies have gold reserves larger than Singapore, Sweden
- The gold holdings by three largest gold loan companies in Kerala is 263 tonnes.
- This makes them own more gold reserves than some of the richest countries
- India holds approximately 30 percent of the global demand for gold.
Some of the largest gold loan companies have emerged from Kerala, and there are no brownie points for guessing why. They are large enough that the gold reserves held by these companies even exceeds some of the richest countries.
Three of the largest gold loan companies in Kerala namely Muthoot Finance, Manappuram Finance and Muthoot Fincorp together hold about 263 tonnes of gold jewellery. According to Times of India, these companies have grown from 195 tonnes to 263 tonnes in the last two years. This means they hold gold reserves more than some of the richest countries such as Belgium, Singapore, Sweden and Australia. In fact, in Kerala, about 2 lakh people are employed with the gold industry, adds the report.
Muthoot Finance is the largest gold loan company in Kerala that has grown from 116 tonnes to 150 tonnes in the last two years. Overall, India holds about 30 percent of the global gold demand and is believed to be a source of insurance. An GFMS Gold Survey said that India topped the chart of countries consuming gold jewellery with 107.6 tonnes during Q3 of 2016.
For a clearer picture, in comparison, gold reserves of Singapore accounts to 127.4 tonnes, Sweden to 125.7 tonnes, Australia to 79.9 tonnes, Kuwait to 79 tonnes, Denmark to 66.5 tonnes and Finland to 49.1 tonnes.