RBI MAY HAVE PURCHASED GOLD FROM TURKEY GOVERNMENT & THE DESCENDANTS OF THE NIZAM OF HYDERABAD
special reports

RBI MAY HAVE PURCHASED GOLD FROM TURKEY GOVERNMENT & THE DESCENDANTS OF THE NIZAM OF HYDERABAD

Riddhi Siddhi Bullions Ltd

*The Turkish president Tayyab Ardogan is popular among his citizens advised to sell gold

*Mir Osman Ali Khan, Nizam VII donation of 5,000 kg of gold to the Indian National Defiance Fund in 1965


The Reserve Bank of India (RBI) added 8.46 ton of gold in its reserve during the financial year 2017-18. It is assumed that some part of this gold has been purchased from the government of Turkey and the descendants of Nizam of Hyderabad, said bullion analyst Ameer Colombowala quoting his contact sources. Colombowala, a bullion advisor of a foreign bank, stated that the average price $1140 per ounce (31.1035) for this gold purchased in trenches. Today, global price was quoted at $ 1200.

The Nizam of Hyderabad was originally a native of Turkey and migrated to India, even today the descendents of the Royal family reside in Turkey. The descendants of Nizam were in need of money for their project in Australia. Therefore they have sold this gold as being heard in the International Bullion Circuit, said Colambowala.

The possibility of such deal can’t be ruled out completely, as normally the RBI purchases gold from the IMF through the International financial institution. RBI had purchased 200 ton gold from the International Monetary Fund in November, 2009 when the prevailing price was around $ 1050 per ounce. This was the first purchase since last 10 year. The Nizam’s of Hyderabad Mir Osman Ali Khan, Nizam VIIdonation of 5,000 kg of gold to the Indian National Defiance Fund in 1965 was the biggest ever contribution by any individual or organization in India and remains unsurpassed till today.

Prithvi Raj Kothari of Riddhi-Siddhi bullion says that at present there is severe financial crunch in Turkey and its currency has been devalued. So, the gold purchased at lower price by the local people now fetches historical high price in its currency Lira. If Lira has to be stabilizing against dollar by selling gold to get dollar, then the government also get relief in its foreign exchange reserve. The Indian Government and even Indian people are always keen to enter the market to purchase gold at such lower prices.

Ameer Colombowala says that at the end of June 2018 the gold reserve of Turkey was 240.2 ton. After Turkey started purchasing gold from the global market from May 2017, this gold reserve was doubled now. Some part of this gold is lying with the IMF under the special Drawing Right (SDR). It is likely that the RBI increased its reserve by purchasing gold from this reserve. India purchased gold in small part. It is reported that in March, 2018, the highest quantity of around 2.5 ton gold was purchased from the IMF. This gold should be of Turkey.

Tayyab Ardogan, the Turkish president is popular among his citizens. Whenever the price of gold went down, he appealed to his citizens to purchase gold to strengthen the economy and make Lira sustainable in the currency market. Citizens also accept his advice and after India and China they are third biggest purchasers of gold. Recently, Ardogan advised his citizens to sell gold for stabilizing currency Lira which was weakening alarmingly. Date: 7-8-2018

Kotak Commodity Services Ltd

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