Gopabandhu Mohapatra
Gold has reached the unprecedented price level due to global economic uncertainty, and prices have experienced turbulent sharp rises and falls during the past few years. Investors are now turning to gold as a safe haven, seeking stability amidst fluctuating markets. This surge in demand has led to increased interest in gold mining and exploration activities worldwide. Exploring the historical gold rates in India, it unveils an intriguing story of economic, social, and cultural importance.
If we look back to 1964, gold was just Rs. 63.25 for 10 grams and by 1967, it jumped to around Rs. 102.50. Further, the rate was escalated to Rs. 184/- by 1970, but by the year 2000, it was at Rs. 4,400 per 10 grams, which seemed high at that time. But that was just the beginning of a remarkable climb. The rate leaped to Rs. 18,500 in 2010 and as a major milestone, it soared to around Rs. 56,200 in 2020. In the year 2023, it was around Rs. 63,203 and by the 2024, it could touch Rs. 77,913. Beyond everyone’s surprise the value reached Rs. 129,584/- by October 2025.
Unlike paper currencies, gold holds universal appeal and is often seen as a “safe haven” for investment, particularly during periods of financial instability or market volatility. This cultural affinity for gold, combined with its rising value, could lead to a surge in purchases, particularly during festive seasons.
India’s total gold stock, combining government (RBI) reserves, household holdings, and religious institution stock, is estimated to be approximately 30,000 to 34,600 tonnes. Indian householders have the vast majority of the gold, estimated at approximately 25,000 to 28,000 tonnes. This is the largest private gold holding in the world, largely in the form of jewellery and mainly inherited wealth.
Indian religious institutions, predominantly Hindu temples, are estimated to have collectively possessed between 3,000 and 4,000 tonnes of gold. Some estimates place this figure even higher or closer to 5,000 tonnes. Padmanabhaswamy Temple (Kerala) believed to have around 1,300 tonnes of gold. Shri Venkateswara Temple (Tirupati) is estimated to hold 250-300 tonnes of gold. Vaishno Devi Temple (Jammu) accumulated approximately 1,800 kg of gold. Shirdi Sai Baba Temple (Maharashtra) possesses around 376 kg of gold and Sri Jagannath Temple (Odisha) has 150 Kg of Gold.
Countries like United States hold more than 8,100 tonnes of gold. Germany holds 3,350 tonnes of gold in their reserves. Italy has close to 2,450 tonnes of gold. France’s holding is roughly 2,435 tonnes. Russia’s gold holdings are over 2,300 tonnes. China has steadily increased its gold reserves and now holds more than 2,200 tonnes. Switzerland, the small country with huge gold holdings, is around 1,040 tonnes. Given its small population, Switzerland’s per capita gold holding is one of the highest in the world.
As investors flock to safe-haven assets, many experts predict that this volatility may continue for the foreseeable future. Global gold rates have increased due to increased demand for the metal as a safe haven. As a global commodity and a popular safe-haven asset, gold’s price is highly sensitive to various domestic and international market forces.
Many experts agree that a sharp rise in gold prices is often a signal of underlying economic and geopolitical distress or uncertainty. Investors typically flock to gold as a safe-haven asset to protect their wealth when they lose confidence in traditional investments like stocks and currencies during times of crisis. However, a cautious approach is advised due to potential short-term price swings.
The writer is a retired banker.
