Indian Household Gold Holdings Exceed Combined Reserves Of Top Central Banks: ASSOCHAM
Indian Household Gold Holdings Exceed Combined Reserves Of Top Central Banks: ASSOCHAM New Delhi, Apr 11 (KNN) Indian households hold gold reserves that exceed the combined holdings of the world’s top 10 central banks, according to a report by ASSOCHAM, highlighting the metal’s deep-rooted role in the country’s savings and cultural landscape. Gold As A Preferred Household Asset The report underscores that gold continues to serve as a key store of value for Indian households, driven by traditional preferences, financial security considerations, and its hedge against inflation and economic uncertainty, reported ANI. Gold holdings in India are largely concentrated in households rather than institutional reserves, reflecting a longstanding pattern where families accumulate the metal in the form of jewellery, coins, and bars. This trend has persisted across generations, supported by cultural practices and limited penetration of alternative financial instruments in certain segments. Policy Push To Mobilise Idle Gold The industry body noted that despite increasing financialisation and the growth of formal investment avenues, gold remains a preferred asset, particularly in rural and semi-urban areas, and during periods of economic volatility. The findings come at a time when policymakers are encouraging a shift towards financial assets, including sovereign gold bonds and gold monetisation schemes, aimed at mobilising idle gold and reducing import dependence. The report highlighted that unlocking the economic potential of these holdings could support capital formation and reduce pressure on the country’s current account, given India’s status as one of the largest gold importers globally. Overall, the analysis points to the scale and significance of household gold reserves in India’s economy, while underlining the policy challenge of integrating these assets into the formal financial system. (KNN Bureau)
