Collectively, families across India have almost 25,000 tonnes of gold, making them the highest private owners of gold in the world. To put it in perspective, Indian families have a gold stash almost six times greater than the gold stored in Fort Knox.
Key Takeaways
- In India, families have accumulated nearly 25,000 tonnes of gold, making them the biggest private holders of gold in the entire world.
- Gold is part of Indian cultural traditions. At weddings, the bride receives gold jewelry, and the bride and groom receive bars of gold. Women in India pass down their gold jewelry to the next generation.
- Gold is also used as financial protection during tough economic times, seen as a good investment.
Why Gold Is So Popular in India
Gold serves various purposes in India. It is collected and kept as a financial shield should economic turmoil arise, it is given as a gift at celebrations, and in rural areas, it takes the place of banking.
As part of the cultural fabric, women collect gold jewelry, which is seen as a symbol of wealth, and it is often passed down from one generation to the next. And at weddings, gold jewelry is given to the bride, and gold bars are presented to the happy couple.
Restrictions on Gold Holdings in India
Despite its importance in Indian life, there are restrictions on how much gold individuals can hold. According to income tax laws in India, married women are allowed to hold as much as 500 grams of gold. For unmarried women, this amount is lower, at 250 grams. Indian men may only hold up to 100 grams of gold.
272,000 Metric Tons
The total discovered gold in human history.
Gold As an Investment
In addition to its cultural importance in India, gold serves as a financial investment worldwide. It is often seen as an economic hedge when markets tumble.
The price of gold as of April 25, 2025, is $3,305.70 per ounce. This is up from $2,331.71 per ounce in April 2024.
Gold has been a solid investment over the past 17 years. In April 2008, the price of gold was $1,354.54 per ounce, a triple-digit increase compared with today’s price.
However, gold is also a highly speculative asset with volatile price shifts and doesn’t provide interest or dividends. Owning physical gold also comes with security and storage demands. Beyond owning bars or jewelry, gold investments can include exchange-traded funds (ETFs) and stocks in gold mining operations.
The Bottom Line
Indian families, particularly Indian women, are large holders of gold. This precious metal has a significant cultural meaning for Indian people, as they gift gold at weddings and pass it down from generation to generation.
Gold also serves as a financial means of protection in difficult economic times, as it does throughout the rest of the world.
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