In India, gold has long been associated with wealth, status, customs, and cultural significance, especially for women. Indian women and gold jewellery share an extensive history, and this is especially true at weddings, where gold is a significant component of the festivities. Gifting gold is essential to Indian traditions, whether in the form of elaborate bridal jewellery or straightforward gold bars.
According to the World Gold Council, Indian women have amassed an estimated 24,000 tons of gold as a result of their cultural affinities. This enormous gold stockpile, which is frequently passed down through generations, reflects India's strong cultural ties to the precious metal.
The total amount of gold held by Indian women exceeds the combined reserves of the top five nations in terms of gold holdings. Let’s look at these statistics for contrast:
• United States: 8,000 tons
• Germany: 3,300 tons
• Italy: 2,450 tons
• France: 2,400 tons
• Russia: 1,900 tons
The combined wealth of Indian women exceeds the combined wealth of these countries. Over 11 per cent of the world's gold is owned by Indian households, surpassing even the holdings of nations like Switzerland and the International Monetary Fund (IMF).
A staggering 40 per cent of India's total gold deposits are held in South India, where Tamil Nadu alone accounts for 28 per cent of this portion. The region is a hub for gold ownership. According to research conducted during 2020–21 by the World Gold Council, Indian households possessed between 21,000 and 23,000 tons of gold; by 2023, that amount had increased to anywhere between 24,000 and 25,000 tons. India's demand for gold rose in 2024 as a result of lower import taxes. Furthermore, the emergence of gold-related financial investment products has broadened its ecosystem and given investors new options.
Since around 40 per cent of the nation's GDP emerges from this enormous household gold horde, it also supports the Indian economy. The cultural significance of gold is emphasised by tax laws:
• Women who are married are permitted to own up to 500 grams.
• Women who are single are allowed to own up to 250 grams.
• There is a stringent 100-gram limit for men.
This judicial system emphasises how gold serves Indian women as a financial safety net as well as a cultural symbol.
Gold continues to have unparalleled cultural and economic significance in India, continuing to influence the world's desire for the metal. In 2024, gold saw tremendous growth, reaching 40 record highs and surging 28 per cent by November. Favourable market conditions and consistent central bank purchases drove the third quarter's total demand, which topped $100 billion.
Image credit: Tanishq, Good returns