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GLITTER GOES WILD
Why is India — the world's largest consumer of gold after China — caught in this frenzy?
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Staff Reporter - Thu, 23, Oct 2025
- 01:30 EDT
- 9
Representative Image / Pexels
Just as India heads into its peak festive and wedding season — Dussehra, Diwali and Dhanteras — gold prices have gone through the roof. On October 1, rates hit an all-time high: 10 grams of 24-karat gold now cost ₹1,19,240 (roughly $1,425). Even lower-purity gold is nearing U.S.-level pricing, an almost unheard-of moment in Indian markets.
City by city, the numbers barely budge. Chennai, Delhi, Mumbai, Bengaluru, Hyderabad — all hovering around ₹11,900 (roughly $134) per gram for pure 24K gold. Analysts say bullion has already surged 45% this year, on track for its strongest rally since 1979.
So why is India — the world's largest consumer of gold after China — caught in this frenzy?
Indian media points to U.S. turbulence. Investors worldwide are turning to gold as Washington faces possible government shutdowns, Federal Reserve battles, and trade tensions. Reports say this uncertainty is driving people toward “the world’s oldest safe haven.”
But in India, gold is more than a hedge — it’s identity, inheritance and insurance rolled into one. Families across the country collectively own almost 25,000 tonnes of gold — nearly six times more than what sits in Fort Knox.
Gold is bought at births, at weddings, on religious holidays, even during financial crises. A typical Indian wedding can see 20–40% of expenses spent on gold jewelry. With 11–13 million weddings a year, demand never really dips — it only pauses between ceremonies.
Yet even sentiment has limits. As one wealth advisor cautioned, gold is “a hedge against uncertainty, not a guaranteed quick profit.” Experts now urge Indians to diversify with ETFs or digital gold rather than buying physical bars in panic.
But let’s be honest — in India, you don’t buy gold. You bring it home. And that tradition isn’t falling any time soon.
This article was printed in the New India Abroad e-paper before Diwali 2025.
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