India is Hoarding Swiss Gold and Silver

The Swiss government is reporting that for the month of June, India accounted for 42% of its precious metal exports. The country shipped 4.3 billion dollars worth of gold during the month of June, of which 1.8 billion was destined for India.

Switzerland's gold exports for 2014 have already totaled more than 35.2 billion dollars, with India accounting for more than 7 billion of that total so far this year.

The rupee price for gold has risen more than 400% in the past ten years, but despite this dramatic increase, demand for gold continues to remain strong for the country.

About 75% of India's physical demand for gold is in the form of jewelry. The country has a long tradition of using gold for weddings and other rituals and is often seen as a store of value for even low-income Indians.

According to Forbes, there are expected to be more than 15 million Indian weddings in the next ten years, a fact that will undoubtedly increase demand for the precious metal.

Another factor affecting gold demand in India is its popularity among Bollywood actresses. Many young women hope to emulate their favorite movie stars by adorning themselves in gold. Gold is even a more popular fashion accessory than diamonds and other gems for the country.

India's massive demand for gold was actually eclipsed by China in 2013. And according to the World Gold Council, demand for gold in China is predicted to see at least a 20% jump for 2014. This is even as the country is reportedly intentionally under-stating their demand for the metal for geo-political reasons.