India holds 15% of the global gold market worth $23 trillion

India holds 15 per cent share in the global gold market, that is currently valued at around $23 trillion, according to a DSP Mutual Fund July 2025 report. The global forex reserves as of now stands around $12.5 trillion.

Moreover, of all the gold mined ever, 65 per cent is in the form of jewellery, and a 5 per cent shift of global reserves into the yellow metal could lead to a sustained and significant rally in its price. However, there is not much gold to absorb such a magnitude of flows, according to the report.

Recently, the precious metal has emerged as the only credible alternative attracting reserve flows. Central bankers around the world bought gold worth $84 billion in 2024. This is in contrast to $85 billion global central banks spent on the yellow metal over 16 years between 2000 and 2016. This torrent of gold purchases reflects the affinity of most countries to hold non-dollar reserve assets. In addition, the yellow metal has touched a new lifetime high in inflation-adjusted terms in 2024. Reserve Bank of India currently has a total gold reserve of 880 metric tonnes.