Gold has always been a symbol of wealth and tradition, especially in India. Interestingly, Indian women collectively own about 24,000 tons of gold, which is approximately 11% of all the gold in the world.

This amount is more than the combined gold reserves of the top five countries: the United States, Germany, Italy, France, and Russia.

This raises the question: why do Indian women hold so much gold and what Is the cultural significance? 

Cultural significance of gold in India

In India, gold is more than just a precious metal; it's a part of the culture. From weddings to festivals, gold jewellery plays a central role in various ceremonies. It's common for families to gift gold to brides, symbolising prosperity and good fortune. 

This tradition has been passed down through generations, leading to a continuous accumulation of gold within families. Owning gold is seen as a status symbol and a way to honour heritage.

ALSO READ: Top 10 gold-producing countries in Africa

 Economic impact

The vast amount of gold held by Indian women has a notable impact on the country's economy. Estimates suggest that Indian households possess between 24,000 to 25,000 tons of gold, which is a significant portion of the nation's wealth. This private gold reserve also supports India's economy, covering about 40% of the nation's Gross Domestic Product (GDP).

Regional concentration

A large portion of India's gold is concentrated in the southern part of the country. Southern India holds 40% of the nation's total gold, with Tamil Nadu alone accounting for 28%. 

Legal aspects of gold ownership

Indian laws recognise the cultural importance of gold, especially for women. According to the Income Tax laws, married women are allowed to hold up to 500 grams of gold without facing any tax implications, while unmarried women can hold up to 250 grams. In contrast, men are permitted to own only up to 100 grams. 

Personal and financial security for Indian women

Beyond cultural and economic factors, gold serves as a form of personal and financial security for Indian women. In many cases, gold jewellery is considered a woman's personal asset, providing financial independence and security. It can be used in times of need, either by selling or pledging as collateral for loans. 

This aspect of gold ownership empowers women, giving them a tangible form of wealth that they can control.

ALSO READ: 10 countries with the largest gold reserves