Updated 20 January 2026 at 13:45 IST
Gold Rally Adds ₹117 Lakh Crore to Indian Household Wealth in 2025
A sharp rise in gold prices over the past two years has added an estimated ₹117 lakh crore to Indian household wealth in calendar year 2025, marking the largest gold-driven wealth gain in at least 25 years. With households holding an estimated 25,000 tonnes of gold, the valuation surge is also translating into higher borrowing against gold, according to data compiled by HDFC Mutual Fund using World Gold Council estimates.
Indian households have seen a significant increase in wealth on the back of rising gold prices, with an estimated ₹117 lakh crore added to household balance sheets in calendar year 2025, according to data compiled by HDFC Mutual Fund using World Gold Council inputs.
The increase represents the highest annual wealth gain from gold in at least 25 years, driven entirely by price appreciation rather than fresh accumulation.
Large Stock Of Household Gold Magnifies Price Impact
Indian households are estimated to hold around 25,000 tonnes of gold, making it one of the largest household asset classes in the country.
Given the size of this stock, even incremental price changes have a substantial impact on household wealth. The latest surge underscores how gold continues to play a central role in household savings, particularly in physical form.
Gold Prices Rise Sharply Over Two Years
The wealth gain follows a strong two-year rally in gold prices.
In calendar year 2024, gold prices rose by approximately ₹14,000 per 10 grams. This was followed by a much steeper increase of around ₹57,000 per 10 grams in calendar year 2025, based on prices up to December 15, 2025.
The cumulative rise over the two years created a pronounced valuation effect on gold already held by households.
A 25-year comparison of annual wealth changes due to gold prices shows that most years delivered relatively modest gains, typically in the range of ₹1–10 lakh crore, with some years recording negative wealth effects when prices fell.
The current increase of ₹117 lakh crore stands out sharply against this historical trend, making it an outlier rather than a continuation of previous cycles.
Higher Gold Values Translate Into Borrowing
The rise in gold prices has coincided with a sharp increase in retail loans against gold jewellery over the past 12–18 months.
Outstanding gold-backed loans have climbed towards ₹3.5–4 lakh crore, with year-on-year growth rates crossing 100% at peak points during the period. The data suggest that households are leveraging higher gold valuations to raise larger loan amounts without liquidating their holdings.
-The estimates are based on gold price data from the World Gold Council and wealth calculations by Avendus, and a report by HDFC Mutual Funds with figures current as of December 15, 2025.
Published By : Shourya Jha
Published On: 20 January 2026 at 13:45 IST