Gold in Indian homes surges past GDP: mind-blowing figures revealed

New Delhi (The Uttam Hindu) : The total value of gold held by Indian households has now exceeded $5 trillion (approximately ₹450 lakh crore). This figure exceeds India's current gross domestic product (GDP) of $4.1 trillion, or approximately ₹370 lakh crore. Gold prices have reached record levels, leading to a sharp increase in the value of gold held by Indian households.

According to a report by global investment bank Morgan Stanley, Indian households hold approximately 34,600 tons of gold. The price of gold in the domestic market is currently hovering around ₹1.38 lakh per 10 grams. In the international market, gold is trading above $4,500 per ounce (about 28 grams), which translates to approximately ₹1.30 lakh per 10 grams in Indian currency.

Data shows that gold's role in the Indian economy is not just that of an investment, but also that of a cultural, financial, and psychological asset." It is generally believed that a rise in the price of an asset makes people feel more affluent and increases their spending, a phenomenon known as the 'wealth effect'. However, a report by Emkay Global reveals a different picture. According to the report, approximately 75 to 80 percent of gold in India is held in the form of jewelry, which people view as long-term savings and family heritage. For this reason, the rise in gold prices does not have much impact on everyday consumption or consumer spending.

RBI is also increasing its gold reserves

Not only ordinary citizens, but the Reserve Bank of India (RBI) is also continuously increasing its gold reserves. Since 2024, the RBI has added approximately 75 tons of gold to its reserves. With this, India's total government gold reserves have increased to approximately 880 tons, representing approximately 14 percent of the country's total foreign exchange reserves.