Indian Households have $3.8 Trillion Worth Gold - 88.8 pc of GDP
India cumulatively held 34,600 tonnes of gold, worth about $3785 billion at the current gold price, which is nearly 88.8 per cent of the country’s GDP
Chennai: Indian households own gold valued at $3.785 trillion, which is 88.8 per cent of the country’s GDP and 3.1x the current equity stock holdings, finds Morgan Stanley. Gold consumption in value terms sky-rocketed to a fresh all-time high of $68 billion at the end of June 2025 on a four-quarter trailing basis.
As of June 2025, India cumulatively held 34,600 tonnes of gold, worth about $3785 billion at the current gold price, which is nearly 88.8 per cent of the country’s GDP. These gold holdings among Indian households at current market value are about 3.1x times the current equity stock holding of $1185 billion.
Gold acts not only as a hedge against inflation and currency depreciation but also aids in portfolio diversification. More recently, while demand for jewellery has been tepid on the back of rising gold prices, investment demand through digital platforms in gold ETFs has been on the rise.
Gold ETFs saw a surge in flow of funds to $1.8 billion on a 12-month trailing basis in August 2025, from $152 million in August 2023. Moreover, gold and silver holdings of domestic mutual funds crossed the Rs 1 trillion mark in September, led by the rally in prices and a simultaneous broadening of the investor base. The past 12 months have seen about a 50 per cent increase in the number of gold and silver ETF investment accounts, as of August 2025.
In volume terms, India's annual gold consumption has been largely range bound between 750-840 tonnes since 2021, meaningfully lower than its peak of 1145 tonnes in June quarter of 2011. However, owing to the sharp acceleration in domestic gold prices, gold consumption, in value terms, sky-rocketed to a fresh all-time high of $68 billion, on a 4-quarter trailing basis, in June quarter of 2025, against $44 billion in June quarter of 2023. Historical data indicates the earlier peak of $55 billion was reached in June quarter of 2013, on the back of strong volume demand of 1067 tonnes.
According to the World Gold Council, India accounts for 26 per cent of the world's global gold demand as of June 2025 on a four-quarter trailing basis against a 5-year-average of 23 per cent, while China had a share of 28 per cent. Though jewellery accounts for two-thirds of gold demand, the share of bars and coins has picked up over the last 5 years from 23.9 per cent in June quarter of 2020 to 32 per cent in June quarter of 2025.
However, diversification of household savings to market-linked products is gaining prominence, especially with the retail investors. the ratio of the value of equity to gold holdings to likely exceed one in the coming years from just 0.3 currently, finds Morgan Stanley.
