For many around the world, gold is just a valuable metal, a prized asset. But in India, gold is Mahalakshmi herself, a symbol of prosperity, well-being, and security. India’s bond with gold stretches back centuries, deeply woven into its culture, beliefs, and economic fabric. From marking auspicious days like Akshaya Tritiya dedicated to purchasing gold to storing wealth for future generations, the story of India’s gold is as layered as its history.
The Land of Parusavedi
In ancient times, India was known as the “Parusavedi”—a land where everything seemingly turned to gold. Foreign travelers and traders would speak in awe of India, where abundance wasn’t limited to precious metals. With its rich soils and diverse produce like rice, wheat, spices, and cotton, India’s natural wealth exceeded mere monetary riches. Even then, foreigners bartered gold for essential goods, symbolizing India as a land of unmatchable bounty.
Why Gold Keeps Flowing to India
Unlike the Western world, where wealth is often seen through material wealth, India sees prosperity in what the earth yields. Gold, however, was an exception. Foreigners eagerly traded their gold for India’s spices, textiles, and food. Over time, India became synonymous with unimaginable gold reserves. Temples amassed piles of gold in vaults, while royalty adorned their walls, clothing, and even statues of deities with the precious metal.
Today, an estimated 2.3 crore kilograms of gold rests within Indian households. The Reserve Bank holds a portion, but over 11 percent of the world’s gold lies in Indian homes—a testament to this deep-rooted connection.
Gold as a Financial Management Tool
Some outsiders might see Indians’ love for gold as an obsession. However, this affinity is rooted in economic prudence. Gold serves as a financial backup, a way for families to weather storms without reliance on loans. When times get tough, families rely on the gold in their homes to meet expenses, fund businesses, or cover emergencies.
During times of global crisis, like the COVID-19 pandemic, gold loans surged, helping countless Indians avoid financial ruin. Unlike cash or assets that lose value, gold is an evergreen investment. As prices consistently climb—reaching record-breaking highs over 37 times in one year alone—gold ensures steady security.
The Global Impact of India’s Love for Gold
Gold imports to India reached 78.95 metric tons in 2023, up by 221 percent, with projections set even higher in 2024. In August 2024 alone, India invested $10 billion in gold imports. For every gram of gold added, India’s global footprint expands, and the international market feels the demand.
This sustained demand, however, comes with its economic dilemmas. Experts argue that hoarding non-productive gold isn’t ideal for a developing economy. Investment in businesses and infrastructure spurs jobs and national growth, unlike gold lying dormant in lockers. However, attempts to reduce gold imports have met with limited success, as Indians continue to buy for security.
An Enduring Relationship
The relationship between Indians and gold isn’t merely financial. It is an emotional and spiritual bond that has provided comfort and hope through history’s ups and downs. In every piece of jewelry and every gold investment, there is the promise of support, security, and prosperity that Indians pass from generation to generation.
This connection to gold has helped shape India’s resilience and identity as one of the world’s largest gold-holding nations. As global uncertainties rise, this bond only strengthens, reinforcing that gold, for India, is more than a metal; it is a timeless source of strength and stability.
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