Gold hits Rs 1 lakh mark! Uday Kotak hails the Indian housewife as 'smartest fund manager'

As gold prices soared to touch Rs 1 lakh per 10 grams at the retail level on Monday, Uday Kotak took to social media to celebrate a familiar Indian investor: the homemaker.

“The performance of gold over time highlights that the Indian housewife is the smartest fund manager in the world,” the veteran banker posted on X. “Governments, central banks, economists, who support pump priming, high deficit funding, may need to take a leaf from India, a net importer of store of value forever!”

Gold June futures on the MCX soared to a fresh all-time high of ?98,753 per 10 grams in early trade on Tuesday, jumping by nearly ?1,500.

The psychological price milestone comes just ahead of Akshaya Tritiya, a key gold-buying festival, potentially dampening consumer sentiment even as traders remain hopeful of strong demand.

Excluding Goods and Services Tax (GST), the precious metal was trading at ?97,200 per 10 grams on Monday. The surge drew brisk footfall in key markets.

Also Read: As global markets wobble, Sridhar Vembu explains why India’s love for gold might be the country’s biggest strength

Gold - Indian women's best friend

Indian women collectively own a staggering 24,000 to 25,000 tonnes of gold—equivalent to over 25 million kilograms—according to a Times of India December 2024 report, citing data from the World Gold Council. This accounts for around 11% of the world’s total gold reserves in jewellery form.

The sheer scale of ownership is unmatched globally. The gold held by Indian women surpasses the official reserves of the top five countries combined. To put it in perspective, the United States holds about 8,000 tonnes of gold, followed by Germany (3,300 tonnes), Italy (2,450 tonnes), France (2,400 tonnes), and Russia (1,900 tonnes). Even when combined, these countries trail behind India’s women in terms of gold holdings, ToI noted.

Citing a report from the Oxford Gold Group, ToI added that Indian households alone account for more than the combined reserves of the United States, the International Monetary Fund (IMF), Switzerland, and Germany.

South India, in particular, stands out for its gold concentration. The region accounts for nearly 40% of the country’s total household gold holdings, with Tamil Nadu alone contributing 28% of that share, ToI reported.

The World Gold Council’s study for 2020–21 estimated Indian households held between 21,000 and 23,000 tonnes of gold, which has since risen sharply. This vast store of gold is not just cultural but also economic—it is estimated to back nearly 40% of India’s GDP, making it a silent yet substantial pillar of national wealth.

Gold to shine more?

"There was a lot of rush today to buy gold in Zaveri Bazaar as there is a feeling in the market that prices of gold will surge further," Avinash Gupta, vice chairman of the All India Gem & Jewellery Domestic Council, told ET.

On the global front, Comex gold neared the USD 3,400-mark, while MCX gold hit Rs 96,775, both registering all-time highs.

"Gold prices extended their record-breaking rally as the fresh week kicked off with strong early buying," said Jateen Trivedi, research analyst at LKP Securities.

He attributed the surge to a mix of global macroeconomic uncertainties:

"The rally is being supported by escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis. Continued buying by China, global central banks, and institutional investors has added momentum to the bullish sentiment."

Trivedi added that as long as Comex stays above $3,250 and MCX above ?91,000, the uptrend is intact. Dips toward ?93,000 may offer fresh buying opportunities, though traders should remain cautious due to high volatility.

Interestingly, consumer preferences are also shifting with the price rise.

"We are witnessing increasing traction in natural diamond jewellery, polki or raw, uncut diamond, and coloured gemstone pieces," said Saurabh Gadgil, managing director of PNG Jewellers, told ET.

"Gold bars and coins are also expected to perform well as consumers continue to look to gold as a safe, long-term asset. The next 10 days will be crucial in shaping momentum, but all indicators point to a promising Akshaya Tritiya ahead."