India’s love for gold is well known, from wedding jewellery to family heirlooms, it sits quietly in millions of homes across the country. But according to Zerodha founder and CEO Nithin Kamath, this enormous wealth is largely untapped and could be put to much better use.
As per the World Gold Council, Most of it, however, remains tucked away in lockers. Kamath believes that this idle asset could play a bigger role in driving the nation’s growth.
Yet, much of this gold sits quietly in lockers, earning nothing. “We need better ways to financialise this gold beyond just gold loans,” Kamath said, pointing out that investments in equities directly support businesses, create jobs, and drive growth.
Kamath pointed out that while gold is considered a safe investment, it does not contribute to economic growth the way other investments do. In contrast, money invested in equities flows into companies that use it to expand, innovate, and create jobs.
“Equity investments fund companies that need capital to grow,” Kamath said.
To explain his point, Kamath shared a chart comparing the annual returns of gold and the Nifty 500 index from 1996 to 2025. The results were striking — equities outperformed gold in 24 out of 30 years.
Over the decades, the Nifty 500 saw some remarkable highs — gains of 101% in 2003, 105% in 2004, and 91% in 2009. However, it also faced steep drops, such as -57% in 2008 and -26% in 2011.
Gold, by contrast, gave more steady but moderate returns, with sharp rises of 32% in 2011 and 27% in 2020. Interestingly, during the pandemic year of 2020, both gold and equities performed well — gold rose 27% while the Nifty 500 gained 16%.
Kamath’s remarks shed light on a long-standing issue, i.e., India’s affection for gold and how to make it work for growth. Gold continues to be a symbol of security, yet it contributes little to the economy when left idle.
His comments suggest the need for fresh, innovative ideas that allow people to benefit from their gold holdings without having to sell or pledge them. Such measures could turn passive wealth into productive capital.
With smarter financial options, household gold could fund industries, generate employment, and drive national progress.