Indian households have more gold than the world’s top 10 banks: Its value is ₹830 lakh crore; More than the GDP of every country except America and China

75-80% of gold in India is in the form of jewellery. People see it as long term saving and tradition.

The gold kept in Indian homes and temples has reached 50,000 tonnes, whose value is about 10 trillion dollars i.e. about ₹ 830 lakh crore. According to the report of traders’ organization Assocham, this has exceeded the total reserves of the world’s 10 largest central banks.

This wealth is more than the annual GDP of almost every country in the world except America and China. Assocham says that if this property is made a part of the formal economy, it can increase the pace of India’s development manifold.

According to World Gold Council (WGC) data, India’s official treasury (RBI) holds 880.3 tonnes of gold, which ranks 8th in the world. This is much less than America’s 8,133 tonnes, but India is at the forefront in terms of private stock.

Gold kept in homes up to 125% of India’s GDP

According to estimates by Kotak Institutional Equities, the huge rise in gold prices between 2024 and 2026 has given a huge boost to the wealth of Indian households.

• Mathematics of Wealth: By January 2026, the value of gold held in Indian households is expected to exceed $5 trillion, which is about 125% of India’s total GDP.
• More than bank deposits: The value of gold is 175% more than the total money held by households in bank deposits and stock markets. That means Indians still have the most trust in gold.
• Share of property: The share of gold in the total ‘non-property wealth’ (except land and house) of Indians has reached 65%.

Another $7.5 trillion can be added to GDP by 2047

ASSOCHAM has prepared a roadmap on how this ‘dead investment’ can be put to work.

• Multiplier Effect: If just 2% of the gold held by households is converted into gold monetization schemes or financial assets every year, an additional $7.5 trillion will be added to India’s GDP by 2047.
• Target 2047: The report says India’s estimated GDP of $34 trillion could reach $41.5 trillion by 2047 with proper use of gold.

Increasing trend of gold loan: Loan crossed ₹24 lakh crore

Instead of just keeping gold in the safe, people are now using it for productive purposes.

• Retail Credit: By November 2025, gold loans given against gold and jewelery in India have reached ₹24.34 lakh crore.
• Changing perspective: Now gold loan is no longer just a matter of compulsion, but has become a mainstream loan product for small business, agriculture and infrastructure.

According to Indian agencies the current price of gold…

Does rising gold prices increase purchasing power?

It is generally believed that when the price of an asset increases, people feel richer and spend more. This is called wealth effect. However, a report by MK Global claims the opposite.

According to reports, 75-80% of gold in India is in the form of jewellery. People see it as long term saving and tradition. Since people do not sell it, the increase in prices does not have any significant impact on their everyday consumption or purchasing.

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