The meteoric rise in gold prices this year has not only caught the attention of investors but also reignited the age-old debate on whether India's deep-rooted love for gold is driven by instinct or investment acumen.
Weighing in on the matter, banker Uday Kotak shared a sharp observation on X: "The performance of gold over time highlights that the Indian housewife is the smartest fund manager in the world."
He further remarked, "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!"
Kotak's comment triggered a spirited conversation online, with some lauding the traditional wisdom that led Indian households to invest in gold, while others cautioned against romanticising it as a strategy. One user noted, "Gold may have outperformed, but let's not confuse luck with planning. Respect instinct-but value financial literacy too."
Gold prices have been on a relentless rise this year. International gold futures are hovering around $3,484.70 per ounce, while in India, 24-carat gold is nearing Rs 1 lakh, currently priced at approximately Rs 98,420 per 10 grams, and 22-carat at Rs 90,150. In 2025 alone, gold has surged over 26%.
Multiple global factors are fueling the rally-ongoing trade tensions, recession fears in the US, central banks (especially China) ramping up gold reserves, and expectations of interest rate cuts by the US Federal Reserve. Goldman Sachs recently projected gold could hit $3,700 per ounce by year-end, or even touch $4,500 under high-risk conditions.
Gold, which has long been a symbol of wealth, holds cultural significance in India. Indian celebrations are incomplete without gold. The yellow metal makes Indians feel secure, and they believe it would help overcome financial challenges during turbulent times. It acts as a hedge or protection net for investors.
