Indian households hold $5 trillion in gold, value now exceeds banks deposits and stock market

Indian households are sitting on an enormous reserve of gold whose value has now crossed $5 trillion, highlighting the country’s deep cultural and financial attachment to the precious metal. Estimates suggest that the gold held by households is now worth about ₹445 lakh crore, making it one of the largest private gold reserves in the world. The surge reflects rising gold prices and sustained buying by families across the country.

The scale of this wealth becomes clearer when compared with other financial indicators. The value of gold held in Indian homes is estimated to be nearly 125% of the country’s gross domestic product. It has also surpassed the combined market value of companies listed on the Bombay Stock Exchange, which stood at about ₹420 lakh crore around Monday morning. Gold wealth in households has also outpaced the country’s banking system deposits. Data indicates that total bank deposits in India were around ₹253 lakh crore in December 2025, significantly lower than the estimated value of gold held privately. This shows how deeply physical assets such as gold remain embedded in household savings behaviour.

However, the growing preference for gold is also raising economic concerns. Analysts warn that heavy purchases of gold convert financial savings such as bank deposits into physical assets that do not directly contribute to productive investment. Since most of India’s gold demand is met through imports, continued buying could also increase pressure on foreign exchange reserves and affect the broader economy.