$5 trillion in gold? At record high prices, India's household gold could now be bigger than GDP - The Economic Times
India’s long-standing cultural preference for gold has reached an unprecedented financial scale as rising global prices push household gold holdings to record levels. With gold trading near historic highs, the estimated value of gold owned by Indian families is now believed to be around $5 trillion, a figure that may surpass the country’s annual GDP. This massive accumulation reflects generations of savings in the form of jewellery, coins, and bars, often viewed as a safe hedge against inflation and economic uncertainty. Experts suggest that while this wealth strengthens household balance sheets, much of it remains locked and underutilised in the formal economy. If even a small portion were mobilised through financial instruments or gold-backed lending, it could support investment and economic growth. The surge also highlights gold’s continued importance in India despite expanding equity and digital investment options.
The Key points
- Indian households collectively hold gold worth nearly five trillion dollars.
- Record international gold prices significantly boosted overall household wealth.
- Estimated household gold value may now exceed India’s annual GDP.
- Gold remains a trusted inflation hedge for Indian families.
- Jewellery forms the largest share of household gold holdings.
- Most gold wealth stays outside the formal financial system.
- Experts see potential to monetise gold through loans and schemes.
- Rising prices increased both emotional and financial value of gold.
- Gold ownership reflects tradition, security, and long-term savings habits.
- Better gold mobilisation could support future economic growth.
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