Question
Q16.Consider the following statements:
Statement-I
Switzerland is one of the leading exporters of gold in terms of value.
Statement-II:
Switzerland has the seçond largest gold reserves in the world.
Which one of the following is correct in respect of the above statements?
- Both Statement-I and Statement-II (c) Statement-I are correct and Statement-II is the correct explanation for Statement-I
- Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
- Statement – I is correct but Statement – II is incorrect
- Statement – I is incorrect but Statement -II is correct
Answer: 3
Detailed Explanation
World Gold Council (WGC):
- It is a nonprofit association of the world’s leading gold producers.
- A market development organization for the gold industry, the WGC includes 33 members and many members are gold mining companies.
- It was formed in 1987 by some of the world’s most forward-thinking mining companies to promote the use of and demand for gold through marketing, research, and lobbying.
- Headquarters: London, UK
- It aims to maximize the industry’s potential growth by monitoring and defending existing gold consumption.
- It achieves this by setting up gold standards, proposing policies, ensuring fairness and sustainability in the gold mining industry, and promoting the usage and demand for gold for individuals, industries, and institutions.
- The WGC is also the global authority on gold, and they offer comprehensive analyses of the industry.
- The most famous publications are quarterly reports on the gold market and gold demand trends analyzed by both sector and geographical location.
- It also co-sponsors research in the development of new uses of gold, or of new products containing gold.
- It covers the markets which comprise about three-quarters of the world’s annual gold consumption.
- The WGC was the creator of the first gold exchange-traded fund.
| Ranking | Country | Export Value(mn) |
| 1 | Switzerland | $ 86,700 |
| 2 | UAE | $ 32,800 |
| 3 | United Kingdom | $ 29,700 |
| 4 | United States | $ 26,600 |
| 5 | South Africa | $ 20,100 |
| 6 | Russia | $ 19,100 |
| 7 | Singapore | $ 18,600 |
| 8 | Australia | $ 17,600 |
| 9 | Hong Kong | $ 14,300 |
| 10 | Mali | $ 9,030 |
According to Global Gold council
“Gold Mining production in India”
“Gold consuming countries in world”
- India’s jewellery consumption reached 563.4 tons, surpassing China’s 511.4 tons, solidifying India’s position as the world’s largest gold consumer in this sector.
- India’s total gold demand rose by 5% year-on-year, reaching 802.8 tons in 2024, up from 761 tons in 2023.
- This increase was driven by higher jewellery consumption and a significant rise in investment demand as buyers looked to take advantage of rising gold prices.
Gold Refineries in India”
“Gold consumption by country”
“Gold imports by country”
Below are the 15 countries that imported the highest dollar value worth of gold during 2023
· Switzerland: US$102.3 billion (20.8% of total gold imports)
· Mainland China: $92.1 billion (18.8%)
· Hong Kong: $59.9 billion (12.2%)
· United Kingdom: $48.1 billion (9.8%)
· India: $42.6 billion (8.7%)
· Türkiye: $30 billion (6.1%)
· United Arab Emirates: $23.9 billion (4.9%)
· United States: $15.1 billion (3.1%)
· Singapore: $12.6 billion (2.6%)
· Canada: $9.5 billion (1.9%)
· Thailand: $8 billion (1.6%)
· Italy: $6.7 billion (1.4%)
· Australia: $5.7 billion (1.2%)
· Germany: $4.9 billion (1%)
· Saudi Arabia: $4.5 billion (0.9%)
“Gold exports by country”
“Zimbawe Gold (ZiG)”
· Zimbabwe has launched its newest currency, the ZiG, which is backed by gold and aimed at addressing the country’s long-standing issues with currency instability and hyperinflation. The ZiG, introduced on April 5, 2024, co-circulates with other foreign currencies in the economy.
About Gold-backed currency:
· It has a fixed value directly tied to gold and is convertible into the precious metal. Its money supply is constrained by available gold reserves, offering inherent value and potential long-term stability.
· In contrast, fiat currency lacks intrinsic value and is designated as legal tender by governments. Its value is dictated by supply and demand dynamics and isn’t backed by any physical commodity. Fiat currency affords central banks greater control over printing money as needed.
