Core Insights - India is accelerating the repatriation of gold reserves, with approximately 65% now stored domestically, nearly double the level from four years ago [1][3] - The Reserve Bank of India (RBI) has repatriated about 64 tons of gold in the first half of the fiscal year ending September, increasing the gold's share in foreign exchange reserves to 13.92% from 11.70% in March [3] - The RBI currently holds 880 tons of gold, with 576 tons stored domestically, marking a historical high compared to 38% in September 2022 [3] - The shift in gold storage is largely viewed as a response to the freezing of Russian foreign reserves, prompting countries to reassess the risks of holding sovereign assets abroad [3][5] - India's total foreign exchange reserves reached $702.3 billion as of October 17, sufficient to cover over 11 months of import needs, positioning it as one of Asia's most resilient emerging markets [4] Industry Trends - A global trend of central banks repatriating gold is emerging, driven by geopolitical conflicts and the increasing weaponization of financial sanctions [5][6] - The founder of Pinetree Macro highlighted that in an era where international law is disregarded, repatriating gold is a rational defensive action [5] - Serbia's central bank has also announced the return of all its gold reserves, emphasizing security over liquidity during crises [6] - A recent survey by the World Gold Council indicates that 68% of central banks plan to keep their gold reserves domestically, up from 50% in 2020, reflecting a growing trend of gold repatriation as a strategy to mitigate geopolitical financial risks [6]