During this period of global instability, the precious metal has broken all records. But this surge is particularly pronounced in India, where women hold the largest share of this safe asset as a guarantee of financial security in marriage. Together, they hold an estimated 11 per cent of the world's gold. Rising jewellery prices, however, are also changing market habits.

Milan (AsiaNews) – While the spot price of gold traded above US$ 5,600 an ounce, in India, ten grams are now worth approximately 183,000 rupees, a record that reflects gold's role as a safe asset during a period of geopolitical and financial instability.

In India, gold is not just stored in the vaults of big banks; a huge portion of this wealth is kept in homes, temples, and, above all, in the jewellery boxes of Indian women.

In recent years, the Reserve Bank of India (RBI), the country’s central bank, has significantly increased its gold reserves. In the third quarter of 2025, official reserves reached approximately 880.18 tonnes, the highest level ever recorded by the country. But this is only a fraction of the gold present in India.

According to some market estimates, Indian households collectively own tens of thousands of tonnes of gold (including temple gold), ranging from about 25,000 to more than 34,000 tonnes, equivalent to about 14 per cent of the world's private gold stock.

A Morgan Stanley report published in October estimated that Indian households owned approximately 34,600 tonnes of gold, worth nearly or more than US$ 5 trillion today.

Although this is an inaccurate comparison, Indian newspapers have been quick to point out that this private wealth is worth nearly six times Pakistan's GDP.

Women are the guardians of this wealth. According to estimates released in recent years and reported by local media, Indian women alone own approximately 11 per cent of the world's gold, i.e. more than 20,000 tonnes.

This is not just an aesthetic or religious matter, often associated with the cult of the goddess Laxmi; instead, gold represents an effective tool for economic security and financial independence.

The possession of gold jewellery received from family, particularly at marriage, is summarised in the concept of streedhan, a term that indicates a woman's personal wealth received as a gift and which has specific legal recognition.

The Hindu Succession Act of 1956 established that any property a woman earns, inherits, or receives as a gift is her exclusive property. This guarantees full ownership of gold jewellery and other assets, regardless of adverse circumstances such as marital rows or family financial difficulties.

The law explicitly condemns any form of male control or "domination" over streedhan: any attempts at appropriation by a husband or family member can result in harsh legal action.

In fact, the current legal framework is designed to protect a woman's right to retain her wealth in its entirety. It is no coincidence that jewels are often bequeathed to daughters, becoming a form of intergenerational investment.

This strong cultural and emotional bond also explains the limited success of government attempts to "monetise" gold through bonds or bank deposits. Despite incentives, less than 2 per cent of domestic gold is used as collateral for loans.

In the past few years, gold demand in India has continued to grow. According to the most recent estimates from the World Gold Council, total demand was approximately 710.9 tonnes in 2025, while a decline to 600–700 tonnes is expected in 2026, due to high price volatility.

As in the rest of the world, gold is increasingly perceived as a financial asset. In 2025, investment demand, in the form of bars and coins, accounted for approximately 40 per cent of total gold consumption in India, compared to a historical average of around 25 per cent.

Rising prices, however, have also changed market habits. Increasingly, buyers are turning to lower-carat gold, such as 18- or 14-carat gold, which is cheaper and more durable than traditional 22-carat gold.

The trend of "lightweight" jewellery, designed to appear bulky while using less metal, is also growing, as is exchange – a significant portion of sales comes from melting down old family jewels, transformed into new models for which only the workmanship is paid.

Certain alternatives are becoming available for those who do not want to store physical gold at home for security or cost reasons, such as Gold Exchange Traded Funds (ETFs), which allow investors to invest in gold through financial markets.

In 2025, Indian investments in these instruments are expected to hit record levels of approximately US$ 4.9 billion. Digital gold is also rapidly gaining popularity, purchasable through fintech apps that are attracting especially younger generations.

INDIAN MANDALA IS THE ASIANEWS NEWSLETTER DEDICATED TO INDIA. WOULD YOU LIKE TO RECEIVE IT EVERY FRIDAY? TO SUBSCRIBE, CLICK HERE.

• india
• gold
• women
• safe asset
• rising price
• intergenerational transfer
• gold exchange traded funds
• etfs