Nithin Kamath Urges Smarter Ways to Unlock India’s $3 Trillion Gold Treasure
India’s households collectively hold an estimated $3 trillion worth of gold — a massive treasure that mostly lies idle in lockers and safes. While gold remains a cherished part of Indian culture, Zerodha founder and CEO Nithin Kamath believes it’s time to put this dormant wealth to work through smarter financial solutions.
A Treasure Sitting Idle
According to the World Gold Council, Indian families own around 25,000 tonnes of gold, valued at nearly $3 trillion. From wedding ornaments to inherited heirlooms, gold is deeply woven into India’s social and emotional fabric. Yet, Kamath points out that most of this wealth contributes little to the economy.
“We need better ways to financialise this gold beyond just gold loans,” Kamath said, highlighting how investments in equities help businesses grow, create jobs, and drive economic progress — something idle gold does not do.
While gold is often viewed as a safe and reliable investment, Kamath emphasized that its economic impact remains minimal compared to equities, where invested capital directly supports companies and innovation.
“Equity investments fund companies that need capital to grow,” he explained.
Gold vs. Equities: A Performance Gap
To illustrate his point, Kamath shared a comparison of annual returns between gold and the Nifty 500 index from 1996 to 2025. The data showed that equities outperformed gold in 24 out of 30 years.
The Nifty 500 recorded remarkable gains of 101% in 2003, 105% in 2004, and 91% in 2009, though it also faced downturns such as -57% in 2008 and -26% in 2011.
Gold, on the other hand, offered steadier but moderate returns, with notable spikes of 32% in 2011 and 27% in 2020. Interestingly, during the pandemic year of 2020, both asset classes performed well — gold rose 27%, while the Nifty 500 gained 16%.
Why It Matters for India
Kamath’s remarks reignite a long-standing conversation around India’s cultural affinity for gold and the need to make it work for economic growth. While gold continues to symbolize security and stability for millions, it remains an underutilized financial resource.
His comments suggest that India must find innovative mechanisms to allow people to leverage their gold holdings without selling or pledging them — transforming passive wealth into productive capital.
If effectively mobilized, this vast household gold reserve could fund industries, boost liquidity, create jobs, and contribute meaningfully to India’s economic progress.
The Bottom Line
Kamath’s call highlights a crucial economic opportunity: turning India’s love for gold into a force for financial inclusion and growth. With the right financial instruments and policy innovation, the nation’s $3 trillion gold treasure could become a cornerstone of India’s development story, rather than just a symbol of security locked away in safes.
