The wealth of Indian families has been growing with the rise in gold prices. According to a report by Morgan Stanley, the 34,600 tons of metal accumulated in the country — equivalent to the weight of more than 6,000 elephants — reached an estimated value of almost US$3.8 trillion after the recent record high in prices.
“Rising gold prices are generating a positive wealth effect on household balance sheets,” wrote economists Upasana Chachra and Bani Gambhir in a note released on Thursday (9).
In India, gold plays a central role in cultural, religious and social life. Families accumulate it not only as a form of long-term savings or emergency reserves, but also as a symbol of prosperity in religious rituals. The precious metal is commonly given as gifts at weddings and festivals, strengthening family ties and transferring wealth between generations.
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The new estimate easily exceeds the World Gold Council survey from July 2023, which indicated around 25 thousand tons in Indian homes. The country is the second largest consumer of gold in the world.
The surge in the metal’s estimated value comes amid a more than 50% rise in global gold prices this year, which surpassed US$4,000 per ounce — the biggest gain since 1979. The appreciation has been driven by central bank purchases, geopolitical tensions and interest rate cuts by the Federal Reserve. In India, domestic prices tend to follow the global market, as the country imports most of the gold it consumes.
The Central Bank of India (RBI) has also supported optimism: since 2024, it has purchased around 75 tonnes, bringing its total reserves to 880 tonnes — around 14% of India’s international reserves.
According to Morgan Stanley, the wealth effect linked to gold gains additional strength with the cycle of interest cuts by the RBI and the reduction in taxes on consumption promoted by the government.
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