New Delhi, April 16: Ahead of Akshaya Tritiya on April 19, a new report has highlighted India’s deep-rooted affinity for gold, estimating that Indian households hold between 11-16 per cent of all the gold ever mined above ground globally, surpassing the combined reserves of major economies.
The findings, released by InCred Money, come at a time when gold prices have seen recent fluctuations, driven partly by global economic cues such as the nomination of Kevin Warsh. However, analysts suggest that these movements reflect short-term corrections rather than any weakening of long-term demand.
According to the report, one in every three Indian households holds gold, largely as a store of wealth rather than a speculative investment. At its peak, India’s private gold stock was estimated to exceed 100 per cent of the country’s Gross Domestic Product (GDP), underscoring its cultural and economic significance.
The note describes gold as India’s “original alternative asset,” shaped by decades of inflation cycles, currency volatility, and geopolitical uncertainties. This enduring trust, analysts say, continues to drive demand even as financial markets evolve.
Global factors driving gold rally
The report attributes the sharp 90 per cent rally in gold prices between March 2025 and March 2026 to sustained central bank buying, which has exceeded 1,000 tonnes annually since 2022. A key trigger cited is the Freezing of Russian foreign exchange reserves 2022, which underscored the vulnerability of dollar-denominated assets and prompted a shift towards physical gold.
Institutional actions have reinforced this trend. The Reserve Bank of India has repatriated portions of its gold reserves from London, while China has introduced policies mandating insurers to allocate a portion of their assets to physical gold.
China’s move alone could channel an estimated $45-53 billion into gold markets over the next three years, equivalent to 630-750 tonnes, accounting for up to 20 per cent of newly mined gold annually.
Strong returns outperform traditional markets
The surge in gold prices has translated into strong investor returns. Gold exchange-traded funds (ETFs) have delivered one-year returns ranging between 58.81 per cent and 62.85 per cent, while five-year compounded annual growth rates (CAGR) hover around 26 per cent.
In comparison, traditional benchmarks such as Nifty 50 and S&P 500 have lagged behind in recent performance metrics. Silver, too, has witnessed a dramatic rise, with domestic prices surging over 170 per cent in 2025, while gold prices climbed more than 76 per cent.
Despite short-term volatility, the broader outlook for gold remains robust, supported by central bank accumulation, geopolitical uncertainties, and enduring retail demand in countries like India.
As households across the country prepare for festive purchases this week, the report suggests that India’s centuries-old relationship with gold is not just intact, but growing stronger in an increasingly uncertain global economic landscape.
