Gold, deeply entrenched in Indian culture as a symbol of wealth and tradition, particularly among women, continues to hold unparalleled significance. This cultural bond is most visible during weddings, where gold is integral to the celebrations. Whether as intricate bridal jewellery or simple gold bars, gold gifting and ownership remain central to Indian customs.
According to the World Gold Council, Indian women own an estimated 24,000 tons of gold, representing 11 per cent of the world’s total gold reserves in jewellery form. This immense gold wealth, often passed down through generations, underscores India’s affinity for the precious metal and places Indian women’s holdings ahead of the combined reserves of the top five gold-holding nations.
Indian Women Outshine Global Gold Leaders
For context, here are the gold reserves of the top five countries:
- United States: 8,000 tons
- Germany: 3,300 tons
- Italy: 2,450 tons
- France: 2,400 tons
- Russia: 1,900 tons
Even when combined, these nations possess less gold than Indian women collectively own. Indian households, accounting for over 11 per cent of global gold reserves, surpass not only these countries but also international organizations like the International Monetary Fund (IMF) and nations like Switzerland.
South India: The Gold Heartland
South India leads the country in gold ownership, contributing 40 per cent of India’s total gold reserves. Tamil Nadu alone accounts for 28 per cent of this share. The World Gold Council’s 2020-21 report estimated Indian households owned 21,000–23,000 tons of gold, which increased to 24,000–25,000 tons by 2023.
This vast reserve is more than just a cultural asset—it bolsters the Indian economy, covering nearly 40 per cent of the country’s GDP.
Gold and Indian Tax Regulations
India’s income tax laws reflect the cultural importance of gold:
- Married women can hold up to 500 grams.
- Unmarried women are permitted up to 250 grams.
- Men are allowed a stricter limit of 100 grams.
These rules emphasize gold’s dual role as both a financial safeguard and a symbol of heritage in Indian households.
Gold’s Performance and Economic Implications
Gold’s strong performance in 2024, with prices soaring 28 per cent and achieving 40 record highs, further cemented its position as a valuable asset. Total demand exceeded $100 billion in the third quarter, driven by central bank purchases and favorable market conditions.
The World Gold Council’s Gold Outlook 2025 highlights key global trends:
- A potential US trade war during Donald Trump’s second term may drive gold demand as a safe-haven asset.
- Central banks are expected to continue acquiring gold, supporting its prices.
- Asia, particularly India and China, dominates over 60 per cent of annual gold demand.
India’s Global Influence
Reduced import duties in 2024 fueled India’s gold demand, while financial products tied to gold expanded investment opportunities. As Indian households continue to hold the largest share of global gold, their influence on the precious metal’s cultural and economic value remains unmatched.
