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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.

“The increase in gold-driven wealth presents a unique opportunity in 2026 to drive consumption, particularly in the luxury and jewellery sectors, as more consumers are likely to reinvest their gains into high-value, emotionally significant purchases,” says Ankur Daga, Co-Founder of Angara, a fine jewelry brand. He adds, "As consumers embrace this newfound wealth, we expect a stronger appetite for both traditional and contemporary jewellery, further contributing to the evolution of India’s luxury market.

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.