Since ancient times, gold has been the greatest asset for mankind. Most of the rulers possessed large quantities of gold. Indians have mastered the art of possessing gold. In his treatise ‘Arthashastra,” Chanakya did not impose any restrictions on the “Stridhan” – gold that women possess. Indian homes have a sufficient amount of gold because of this. Indian households own 21,000 metric tons of gold, more than the US government (8,133.46 metric tons), according to Times Now. The amount of gold held by the Indian government is 800.78 tons.
One may wonder why gold prices rise and Indians love gold so much. Let’s first understand the surge in the gold price. When any crisis arises or some instability occurs, gold prices increase. One has to understand that investment in markets, be it in the form of shares, mutual funds, ETF bonds, and so on, loses its shine. There will be a high probability of a recession. Similarly, there is no guarantee of oil prices. The petrodollar system is creating havoc as the USA is on the edge of recession. OPEC+ is controlling oil prices according to their requirements. The Ukraine-Russia war, the Hama-Israel war, and the risk of a Chinese invasion of Taiwan are causing havoc among the people.
One must acknowledge that real estate is an investment made by most people all around the world. But during the war or battle, if enemies occupy that land or demolish buildings, it loses its value, or, in other words, its value becomes zero. Unlike all assets, gold is the only one that doesn’t lose its value. Gold and silver cannot be destroyed chemically, but copper and iron can. Gold, therefore, continues to be valuable. Gold will have even in the worst financial situations, which is considerably better than any other mentioned assets. After understanding the value of gold, one has to understand who is collecting it. China will acquire 224.88 tons of gold in 2024 ( https://www.livemint.com/market/stock-market-news/explained-why-are-central-banks-like-rbi-pboc-accumulating-gold-in-large-quantities-gold-prices-today-gold-rates-11714963880948.html). Then, in the year 2024, India acquired 13.3 tons of gold. Turkey, Kazakhstan, and Singapore are the other leading countries. Apart from government purchases, Indian households purchased 562.3 tons of gold in 2024. Indians love gold on a different level. Be it a marriage, festival, or any function, presents in gold are very common. Many offer a large quantity of gold jewelry at the time of a daughter’s marriage. To wrap up, one can say that Indians always understood the value of gold.