Gold has evolved beyond its traditional role—which may help us mobilize holdings for financial resilience

Subscribe to enjoy similar stories.India’s relationship with gold is entering a new phase. For decades, gold was viewed largely as a macroeconomic problem, a major import that widened the current account deficit and increased dependence on volatile foreign capital. But the global environment has changed sharply.

Today, gold sits at the intersection of geopolitics, household finance, inflation, currency stability and economic resilience.The question is no longer whether Indians buy ‘too much’ gold. The more important question is whether India can redesign its gold economy for an era of prolonged global uncertainty. That shift matters because the world economy itself is becoming structurally more volatile.

Wars in West Asia and Eastern Europe, supply chain fragmentation, shipping disruptions and energy insecurity have created what economists increasingly describe as a “higher risk global order.” In such periods, gold traditionally serves two functions simultaneously: as a global safe-haven asset for investors and a safe store-of-value for households seeking to protect savings against uncertainty.India is uniquely exposed to both these forces. As one of the world’s largest importers of crude oil and gold, the country remains highly sensitive to global commodity shocks. Higher oil prices worsen inflation and pressure the rupee.

Rising gold prices create another layer of vulnerability because India imports hundreds of tonnes of bullion annually, making gold one of its largest non-oil imports. But unlike oil, gold imports are not merely a consumption story. They are deeply tied to household savings behaviour, and that is what makes India’s gold challenge structurally different.Recent PRICE research based on a nationally