Indian Households Hold 11–16% of World’s Gold; More Than Combined Reserves of Major Economies

New Delhi

Ahead of the auspicious occasion of Akshaya Tritiya, a new report has revealed that Indian households collectively own between 11% and 16% of all the gold ever mined globally—an amount exceeding the combined official gold reserves of countries like the United States, Germany, Italy, and Russia.

According to a report by digital investment platform InCred Money, nearly one in three Indian households holds gold as a long-term asset. At its peak, the value of gold owned by Indian families has even exceeded 100% of the country’s GDP, underlining its deep-rooted cultural and financial significance.

The report highlights that gold has long served as a reliable store of value in India, helping households navigate inflation cycles, currency volatility, and geopolitical uncertainties. It continues to remain a preferred alternative asset across generations.

Global factors have also contributed to the surge in gold prices. Between March 2025 and March 2026, gold prices rose by nearly 90%. This increase is attributed to consistent purchases by central banks—exceeding 1,000 tonnes annually since 2022—and policy shifts such as the freezing of Russia’s foreign reserves, which exposed risks associated with dollar-denominated assets.

In addition, the Reserve Bank of India has repatriated its gold reserves from London, while China has directed major insurance companies to invest up to 1% of their assets in physical gold. This move alone could redirect between $45–53 billion (around 630–750 tonnes) into gold over the next three years.

From an investment perspective, gold has delivered strong returns. Gold Exchange-Traded Funds (ETFs) have yielded average one-year returns of around 58.81% to 62.85%, while five-year CAGR returns stand at approximately 25.78% to 26.11%. In 2025, domestic gold prices rose by over 76%, outperforming benchmark indices like the Nifty 50 and the S&P 500.

The report concludes that gold remains a cornerstone of financial security for Indian households, blending tradition with strategic investment value, especially during times of global economic uncertainty.

About Author