Gold: Beyond Jewelry, A $6 Trillion Daily Market

Gold's role is evolving significantly, moving beyond its traditional place in Indian households as jewelry and heirlooms to becoming a mainstream financial asset. Sachin Jain of the World Gold Council highlights a global shift over three decades, driven by increased investment demand and central bank buying. Central banks, previously net sellers, now account for about 20% of annual gold consumption, while financial investment constitutes 43%.

Global debt, now exceeding $37 trillion, is a major catalyst for gold's growing importance as a reserve asset. This trend strengthens gold's position as a reliable safe haven. India's own substantial household gold holdings, estimated to be the world's largest untapped gold reserve, present a significant opportunity for monetization.

Gold Exchange Traded Funds (ETFs) are gaining momentum in India, with assets under management nearly doubling by early 2026. The World Gold Council recommends a 10-15% allocation to gold in investment portfolios for diversification. This approach encourages scientific investment rather than emotional buying.

Looking ahead, India has the potential to become the "jeweller to the world" by enhancing its export capabilities, design innovation, and global branding, mirroring its success in the diamond industry. Furthermore, India aspires to influence global gold pricing, moving from a price-taker to a price-maker.