When John Pierpont Morgan, founder of the world’s largest bank for market capitalization JP Morgan & Co, said that ‘gold is money. Everything else is a loan ‘, little would have known that no one would understand this better than’ Indian Housewives. ‘
In a recent publication about X, veteran banker Uday Kotak praised the “Indian housewife” as the world’s smarter fund manager to import the “store forever” – Gold, to the country, while the central banks of developed markets “touch the money. This fulfillment is obtained well if one looks at the internships.
The total purchase of gold from Indian homes in the last 15 years amounted to 12,000 tons of which 8,696 tons are jewelry and the remaining 3,310 tons such as bars and coins. A calculation based on the average gold price and the amount of gold of each year consumed by households in its various forms, indicates approximate profits of ₹ 59 Lakh Crore or $ 700 billion at the current price of gold.
But that’s not all!
Many repositories
The World Gold Council (WGC) estimates cumulative possession or 25,000 tons per Indian homes in a report issued about a year ago. A report by India Gold Policy Center suggests that the temples of southern India have 3000-5000 tons of gold. In addition, as or February 2025, the Bank of the Reserve of India (RBI) also hero 879 tons of gold, representing almost 13 percent of its total reserves, according to WGC data.
In total, the gold storage of India is estimated at around 30,000 tons, worth $ 3.2 billion based on the current market price of $ 3,319/ounce. To put this in perspective, the current capitalization of the India Stock Market represents the value of thousands of companies that compensate for a substantial part of the economy, with about $ 4.9 billion.
Interestingly, the estimated 30,000 tons of India are approximately 14 percent of total golden stocks above the ground (2,16,265 tons by the end of 2024) worldwide.
Unique place
Gold occupies a unique place in Indian culture, serving as much as an ornament as a reliable investment. With a high traditional savings rate, Indians have preferred historical gold as a value reserve.
As such, there is no clear way to value. Its price and fluctuations are a reflection of the world perception of investors of several economic macro variables and expectations about how it will develop in the future. Geopolitical uncertainties, concerns about inflation are some of the factors that result in investors attending real assets such as gold. The money printing exercise, which initially began as an experiment, but became a recurring habit after the global financial crisis such as Panacea for all economic decelerations, has resulted in significant traction.
Duration The period of great increase in global blend since 2007 Gold has increased by around 298 percent in terms of dollars and 800 percent in terms of rupees. This is superior to S&P 500 and Nifty 50s returns of 276 and 292 percent!
Given India imports around 85-90 percent of its gold demand, this has turned out that the country increases in substantial wealth given the recently burning recruitment in this beautiful metal. It makes one wonder if it is the way India will recover its wealth looted from previous centuries!
However, while wealth is there, the key benefits for the country can accumulate if an effective way to monetize part of this gold is resolved. But for now the country can rest in confidence of its wealth.
Posted on April 26, 2025
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