Gold Prices Soar: Indian Household Wealth Hits Record High in 2025

• Indian households' net worth increased by ₹117 lakh crore ($1.3 trillion) in 2025, primarily due to rising gold prices, according to the HDFC Mutual Fund Yearbook 2026.
• Gold prices surged by approximately ₹57,000 per 10 grams in 2025, following a ₹14,000 increase in 2024, marking the largest wealth growth in 25 years.
• The increase in gold value led to a rise in gold pledge loans, as people leveraged their high-value gold for financial needs.
• In 2025, gold proved to be a reliable investment amidst an unstable Indian share market, where the Nifty index underperformed global markets significantly.
• HDFC Mutual Fund recommends hybrid funds for new investors to balance risk, given the volatility in other asset classes like small-cap stocks.

Why It Matters: Soaring gold prices in 2025 significantly boosted Indian household wealth, making gold a stable investment.