Indians and Their Enduring Love for Gold

Indians love gold. For many, it remains a safer and more dependable savings option than real estate, stocks, or bonds.

- Tirthankar Mitra

According to the World Gold Council, Chinese consumers purchased 857 tonnes of gold in 2024, while Indians bought 803 tonnes. Over the past 15 years, these two countries together have accounted for nearly half of the world's consumer demand for gold.

As per Morgan Stanley, Indian households held about 34,600 tonnes of gold at the end of June this year — a stockpile valued at roughly $3.8 trillion, equivalent to 89% of India’s GDP.

This massive gold holding contributes positively to household balance sheets, creating a wealth effect. It is also being supported by cyclical factors such as lower interest payments amid a more accommodative monetary policy.

Tax reductions — both direct and indirect — have further boosted disposable incomes. While the average gold buyer may not consciously consider the economic implications of their purchase, they continue to buy gold as a hedge against future uncertainties.