India’s Gold Reserves Just Hit a Record High

Came across this article where India’s Gold Reserves are at its peak.

Gold now = 12% of India’s forex assets, up from 8.3% last year.

India’s gold reserves just hit a record high — 879.6 tonnes as of March 2025! That’s a 33% jump from mid-2020 levels.

RBI stacking gold makes a lot of sense right now:

  • This diversifies concentration from Dollar.
  • It’s a timeless hedge against inflation, especially if the currency weakens.
  • Its worldwide standard and accepted.
  • Offers a buffer during sanctions or global financial instability
  • All big banks are doing same not just us.

In a world of rising geopolitical risks and unstable fiat currencies, this move makes more sense and also is a strategic preparedness.

So as some OG’s say follow the steps of smart people, should we also allocate more to gold to be cautious probably around 15% of our allocations? or SIP is ok with same allocation towards gold?

This is a very misleading statistic being thrown around. Gold reserves at all time high but Gold reserves as a % of GDP is actually down. If the economy grows, you expect Gold reserves to grow inline with that which isn’t happening.