Indian households’ gold holdings have reached an estimated $3.8 trillion, equivalent to approximately 88.8% of the country’s Gross Domestic Product (GDP), according to a recent report by Morgan Stanley.
This surge is attributed to a significant rally in gold prices, which have increased by 61.8% in 2025, reaching a record high of $4,056 per ounce. As of June 2025, Indian households collectively held about 34,600 tonnes of gold, underscoring the metal’s deep-rooted cultural and financial significance in the country.
The substantial rise in gold holdings has created a positive wealth effect on household balance sheets, enhancing consumer confidence and spending power. However, experts point out that a significant portion of this gold remains idle, not contributing to the broader economy.
Zerodha CEO Nithin Kamath highlighted this paradox, noting that while Indian households possess approximately $3 trillion worth of gold, much of it is stored and not utilized for investment or economic activities.
Kamath emphasized the potential benefits of mobilizing even a fraction of this idle gold to stimulate economic growth and investment.
Equity Investments Reach Record Share of Household Financial Savings
In a notable shift, equities now constitute a record 15.1% of Indian households’ financial savings, surpassing traditional bank deposits.
This change reflects a growing trend towards financialization of savings, driven by factors such as low interest rates on deposits and increased investor awareness.
The movement towards equities is further supported by favorable demographics and a burgeoning middle class, which is increasingly seeking higher returns through stock market investments.
Despite this progress, participation in the securities market remains limited. A recent survey by the Securities and Exchange Board of India (SEBI) revealed that only about 9.5% of Indian households invest in securities like equities and mutual funds.
The survey also indicated that 80% of families prioritize capital preservation over potentially higher returns from riskier assets, highlighting a cautious approach to investing.
However, the survey also noted improving awareness and growing participation in urban areas, suggesting a potential for increased engagement in the securities market in the future.
The combined trends of rising gold holdings and increasing equity investments signify a significant transformation in India’s household financial landscape.
While gold continues to serve as a traditional store of wealth, the growing inclination towards equities indicates a shift towards more diversified and potentially higher-return investment strategies.
This evolution reflects broader economic changes and the increasing financial sophistication of Indian households.
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