InvestorQ : How much gold is actually held by Indian households and what is its value?
Dhwani Mehta made post

How much gold is actually held by Indian households and what is its value?

Khushi Patel answered.
2 years ago

You will surprised to learn that Indians hold an enormously amount of gold in various forms. This could be either in jewellery form or as ingots or even as coins and dollars. As per the latest RBI annual report, Indian households are holding gold to the tune of 22,500 tonnes (you multiply that by 1000 to get the number of KG). Remember, I am only talking about the gold held by households and not be temples. That could be another huge quantity which we are not even aware nor have we accounted for it. We are only talking about households here.

Now can you imagine what this worth? Look at it this way! A total of 22,500 tons of gold translates into 22.50 billion grams of gold. Considering that the Indian price is currently Rs.4,000/gram that translates into gold holding value of $1.25 trillion. That is equal to almost 70% of the market cap of the Bombay Stock Exchange and nearly 45% of the annual GDP. That is how much gold Indians are holding.

This is important because gold prices have appreciated 30% in the last one year. Since gold has appreciated by 30% in the last one year, it has resulted in gold wealth creation to the tune of $260 billion in the last one year. That is a huge sum and you will now realize why Indian investors are not really bothered by the fall in price of equities or equity funds. The wealth created by gold in the last one year is big enough.