India’s $3 Trillion Gold Dilemma: Nithin Kamath Urges Smarter Monetisation of Household Wealth

India’s love affair with gold is legendary—but it may also be economically limiting. In a recent post on X (formerly Twitter), Zerodha co-founder Nithin Kamath highlighted that Indian households collectively hold an estimated $3 trillion in gold, most of which lies idle in lockers. With gold outperforming equities in 2025, Kamath argues it’s time to rethink how this wealth can be mobilized.

Key highlights:

- Gold’s record-breaking rally  
  In 2025, gold prices surged nearly 56%, reaching ₹1.2 lakh per 10 grams, while the Nifty 500 index rose just 2.84%. This follows a 44% gain in 2024, making gold one of the best-performing assets in recent years.

- Kamath’s core argument  
  Kamath emphasized that while equities fund business growth, household gold remains underutilized. He urged policymakers and fintechs to explore financialisation models beyond gold loans.

- Historical performance contrast  
  Kamath shared data showing gold’s resilience during economic downturns. In 2008, gold gained 25% while equities crashed 57%. Similar trends were seen in 2011 and 2020, reinforcing gold’s role as a crisis hedge.

- Limited success of existing schemes  
  Government initiatives like the Gold Monetisation Scheme (GMS) and Sovereign Gold Bonds (SGBs) have seen low participation due to emotional attachment and lack of incentives.

- Potential economic impact  
  Experts suggest that even mobilizing 10% of household gold—around $300 billion—could significantly deepen financial markets, support infrastructure, and reduce reliance on imports.

- Cultural and emotional resistance  
  Many Indians view gold as a sacred asset, tied to family legacy and financial security. Kamath’s proposal sparked mixed reactions online, with some praising the idea and others warning against financializing family heirlooms.

- Alternative monetisation ideas  
  Suggestions include gold-backed ETFs, digital vault-linked savings products, and fractional ownership models that allow returns without physical liquidation.

Kamath’s call is a timely reminder that India’s glittering reserves could do more than just shine—they could power the next wave of economic growth.

Sources: MSN, NDTV Profit, Business Today, News18