Anantapur district in AP has gold mines

Gold mines in Andhra Pradesh

Ramagiri Gold Mines,Anantapur

In India gold mines are there in 13 states. In all the gold mines of our country it is estimated that 658 tons of gold is there. To extract the entire gold requires a lot of money. The important gold mines in India are Chittradurga, Kolmar, Ramagiri. These Ramgiri gold fields are in Ananthapur district of Andhra Pradesh. These mines were identified by British Government in 1901. Between 1901 -1927, 1,76,338 ounces of gold was produced. Then from a ton of gold ore 15 grams of gold used to be extracted. As the market rate of gold was very low that the production charges the gold mining has to incur great losses. But because the gold rates saw a hike from 2001 Government is planning to open these gold mines. The first place of gold mines in India is occupied by Kolhar mines and then it is Chittradurga gold fields.

Consumption: In the entire consumption of gold 50% is by the gold ornaments only. It is also used in currency reserves and in industrial needs.40% of the consumption is used in investments and 10% for industrial needs. Gold is also used in Aerospace, Electronics, Atomic energy transmission. It is also used in computers and in many electronic circuits. Gold has many uses in medicinal field also . In ancient days kings used to eat the very thin layer of gold spread on hot rice as it increases the immunity and blood circulation of the body. Now since the gold rate is at its peak this is not possible. But even now some sweets have very thin gold layer as the topping .Coming to Ayurveda, Swarna Bhasma is said to have many advantages and is used in various ayurvedic medicines. The rates of such medicines are also are very high. For example in an ayurvedic medicine called Siddhamakaradhwajam gold is used. The cost of 200-300gms of it before 5yrs was 1000. gold is also used in allopathy . It is used in dentistry mainly . Because gold does not depreciate or get rusted so it is used in dentistry.

Qualities of gold: Gold’s unique qualities like mixing with other metals , to be molded into desired thickness, its flexibility , its elasticity, its lesser depreciation, Its yellow color , its glittering quality altogether are the reasons for the craze for gold.

Gold helps the countries to overcome the economic crisis

Many times gold has proved its capacity to help countries to overcome the economic crisis. The countries like Rumania, Russia, and India which were in high debts got these debts cleared with the help of Gold.

Gulf war :At the time of Gulf war in 1991 as the crude oil cost have gone to their peak to clear off the imported crude oil bills then prime Minister Chandrasekhar had to mortgage 20 Tons of Gold due to lack of reserves of foreign currency.

Details of Gold reserves of various other countries:

Also many countries store the Reserves of foreign currency in the form of gold. Due to the international crisis these days all the countries are finding ways to increase their gold reserves . As a part of this India bought gold of 200 Tons in 2009. According to RBI by 2011 there is 30,700 tons of gold in various Central Banks of the world. By the end of this year with 557.7 tons of gold reserves India stands 11^th in the world. America stands first with 8,133.5Tons of Gold holdings. It is 74.7% of its total foreign currency reserves. The next positions are taken by Germany-3,406.8 tons, The International Monetary Fund Organisation-3,005.3 Tons,Italy-2,451.8 tons, France – 2,435.4Tons, China – 1,054.1 Tons, Switzerland – 1,040, Russia 830.5, NetherLands-612.5tons.

Where is gold preserved?

Generally we common people store Gold in safety lockers , Bank lockers. But let us see where the investment organizations, Central banks preserve the tons of their gold reserves .To preserve gold there are gold vaults worldwide. These are just like the FCI go downs. But such big Gold vaults are not there in our country. These are in Singapore, Britain, Germany, and America. They are high security. Now a days the number of people and the central Banks that are showing interest towards these gold reserves is increasing, The scarcity of these gold vaults is increasing . so many of the companies are showing interest to start these gold volts.

Effect of Dollar on gold

As the people are now treating gold as the best investment method the demand for gold is increasing tremendously. Also as the other investing methods are giving huge losses the capitalists are transforming their wealth in the form of gold. With this there is huge hike in the price of the gold. Coming to India’s case not only the demand and supply influence the gold rate but also the dollar influences the gold rate.

For example when the rate of ounce gold cost was 1600 Dollars in international market in the 10gms gold cost in India was 23000- but with the increase of gold rate by 11% in international market and reached 1781 Dollar in India the gold cost was 29270-. The reason being the downfall of value of rupee and increase in value of Dollar. When the gold cost was l1600 Dollars the value of dollar was 45- but now it is more than 50/-. In this way even when the gold rate in international market was decreasing there is no decrease in the gold rates of the country.