India’s Hidden Treasure: $5 Trillion Worth of Gold in Households Surpasses GDP

India’s households are sitting on a massive treasure—and it’s in the form of gold. The total value of gold held across homes in India has now surpassed the country’s GDP, highlighting the nation’s deep-rooted cultural and financial affinity for the precious metal.

Record-Breaking Gold Prices
Gold prices continue to soar, hitting unprecedented levels in the international market. Recently, gold crossed $4,500 per ounce, marking an all-time high. This surge has pushed the total value of gold in Indian homes beyond $5 trillion, exceeding India’s Gross Domestic Product (GDP).

Household Gold Reserves
According to a Morgan Stanley report, as of October last year, Indian households held approximately 34,600 tonnes of gold. Valued at $4,550 per ounce in recent weeks, this stockpile now amounts to more than $5 trillion. For comparison, the International Monetary Fund (IMF) estimates India’s GDP at around $4.1 trillion.

Expert Insight
Dr. Manorenjan Sharma, Chief Economist at Infometrics Valuation and Ratings, told The Economic Times that while this figure is startling, it requires deeper analysis rather than mere comparison. He explained that GDP is a flow variable, whereas gold reserves are a stock. Nevertheless, this disparity underscores gold’s exceptional cultural, financial, and psychological significance in India.

Jewelry Remains the Major Form
Analysis by Emkay Global over the past 15 years shows three major gold price rallies had little impact on consumption patterns. Experts note that Indians consider gold both a form of long-term savings and a commodity for consumption, with 75–80% of household gold held as jewelry.

India: The Second-Largest Consumer Globally
India is the world’s second-largest consumer of gold, accounting for roughly 26% of global demand, just behind China at 28%. According to the World Gold Council, India’s share increased from an average of 23% over the last five years to 26% by June 2025. While jewelry dominates demand, retail investment in gold coins and bars has also risen—from 23.9% in June 2020 to 32% by June 2025.

Reserve Bank Joins the Gold Rush
The Reserve Bank of India (RBI) has also been actively buying gold. Morgan Stanley reports that since 2024, the central bank has acquired approximately 75 tonnes, bringing India’s total gold reserves to 880 tonnes—around 14% of the country’s total foreign exchange reserves.