$XAU held by Indian households is estimated to surpass the total gold reserves of the ten largest national central banks combined. This reflects India’s long standing cultural and economic preference for gold as a store of value, particularly as a hedge against inflation, currency depreciation, and financial uncertainty.
For millions of Indian families, gold functions as both savings and insurance, often held in the form of jewelry rather than financial instruments. Unlike central bank reserves, this gold is decentralized, privately owned, and largely outside the formal financial system.
Conclusion:
India’s household gold stockpile highlights how deeply ingrained trust in physical assets can rival and even exceed institutional reserve strategies. It also underscores gold’s unique role as a parallel monetary asset, independent of central banks and government policy.
