From lockers to economy? CA triggers debate over India’s 25,000-tonne private gold reserve

Indian households are sitting on one of the world’s largest untapped financial assets — physical gold — and women are at the heart of this glittering reserve. Chartered Accountant Nitin Kaushik, in a recent post on X (formerly Twitter), revealed that Indian women alone hold nearly 11% of the world’s gold, amounting to about 25,000 tonnes. 

“That’s more than the combined reserves of the United States, Germany, Italy, France, and Russia,” Kaushik wrote, highlighting the staggering scale of India’s private gold wealth. By comparison, the US officially holds 8,133 tonnes, Germany 3,355 tonnes, and India’s official reserves stand at only 800 tonnes. “Indian households don’t just wear wealth… they store one of the world’s largest untapped financial assets. The question is: will this gold ever move from lockers to the economy?” he asked. 

$2.4 trillion hoard in lockers 

Estimates by the World Gold Council (WGC) and industry experts suggest that Indian households — including temples — hold around 25,000 tonnes of gold, valued at over $2.3-2.4 trillion at current prices. This makes it nearly six times the size of Pakistan’s economy and larger than the GDP of several advanced nations. 

Despite soaring prices, Indian families have shown little interest in liquidating their reserves. A recent Reuters report noted that record domestic gold prices have failed to trigger significant “scrap supply,” as households expect further appreciation in value. 

Why gold matters in turbulent times 

Analysts say the allure of physical gold goes beyond culture and tradition. In a world unsettled by inflation, trade wars, and geopolitical conflicts, gold remains a reliable hedge against uncertainty. 

• Safe haven asset: Investors turn to gold during market volatility, making it a barometer of global anxiety. 
• Inflation shield: Unlike paper currency, gold retains value over decades, protecting households from monetary shocks. 
• Liquidity option: In India, gold is widely used as collateral for loans, allowing families to unlock cash flow without selling their ornaments. 

“Gold in India is not just ornamental wealth; it is a financial safety net,” said a Mumbai-based bullion trader. 

The policy puzzle: From lockers to economy 

Successive governments have attempted to mobilise household gold through schemes such as Sovereign Gold Bonds and Gold Monetisation Schemes, but uptake has been limited. Experts cite emotional attachment, lack of trust in institutions, and pricing concerns as key hurdles. 

Still, policymakers argue that even a modest shift of this vast stockpile into formal financial instruments could reduce India’s heavy gold import bill, ease pressure on the current account deficit, and channel idle wealth into productive investment. 

With global uncertainties rising and gold prices at historic highs, India’s obsession with the yellow metal shows no sign of slowing down. As Kaushik’s post underlines, the question is not whether Indian women will continue to hold gold — they will — but whether policymakers can create the trust and incentives necessary to turn this cultural treasure into a driver of economic growth.