Report shows Indian households hold 34,600 tonnes of gold

Tue Dec 09 2025

Indian households continue to accumulate gold despite soaring prices, according to a new Morgan Stanley report. The financial services firm estimated that families across the country held nearly 34,600 tonnes of gold by June this year. Jewellery, bars and coins make up this stockpile, which the report valued at about ₹342 lakh crore. Analysts said the figure equals 88.8% of India’s GDP, highlighting the scale of domestic gold ownership.

Morgan Stanley noted a clear change in buying patterns when compared with earlier decades. Once, people mostly purchased gold as jewellery. Now, because gold delivered more than 60% returns in the past year, many buyers view it as an investment tool. Mutual fund companies also recognised this trend. As a result, they expanded options through gold ETFs and multi-asset funds to match rising interest among investors.

Analysts say jewellery adds cost; ETFs seen as better for investment

Kotak Institutional Investor said buyers who want gold only for investment should avoid jewellery. The firm explained that stones and other add-ons account for 30–35% of a jewellery piece’s value. Moreover, buyers must pay making charges and polishing costs. Analysts said gold prices must rise by at least 30% a year to offset these expenses and generate profit. Therefore, financial experts advise investors to choose physical gold or gold ETFs if the goal is steady returns rather than ornament use.

Source: https://hyderabadnewshunt.com/