India now holds 15 percent of global gold

New Delhi

India now holds 15 percent of the world’s $23 trillion gold market, according to a new report released on Monday by DSP Mutual Fund. The report shows India’s deep connection with gold and highlights its important role in the global gold market.

Globally, forex reserves are around $12.5 trillion, but the gold market is much bigger at $23 trillion. Of all the gold ever mined, 65 percent is used as jewellery. Experts say if just 5 percent of global reserves shift to gold, prices could rise sharply and stay high for a long time.

Central banks worldwide have been buying gold heavily. From 2000 to 2016, they bought $85 billion worth of gold. In 2024 alone, they bought $84 billion. Since 2022, central banks have purchased nearly 1,000 tonnes of gold each year, more than a fourth of annual gold mining production.

This buying spree shows that many countries want to reduce their dependence on the US dollar and choose safer assets. The report says US Treasury Bonds have become more unstable, making gold more attractive.

In India, the Reserve Bank of India (RBI) currently holds 880 metric tonnes of gold. However, RBI has not added more gold in the current financial year, possibly waiting for prices to settle after strong increases over the last five years.

Gold prices are now at record highs when adjusted for inflation, and gold remains in a strong bull market.

The report also mentioned that India’s companies have shown strong cash flows, which is good for capital allocation and governance.

With fewer global currency options, gold’s appeal remains strong, keeping India’s share and love for gold very important globally.