India and China are rapidly increasing their gold reserves to shield their economies from global instability, inflation, and potential shifts in the U.S. dollar’s dominance. This strategic hoarding signals a move toward greater financial sovereignty and preparation for future economic shocks.
Here’s what’s driving this gold rush and what it could mean:
🏦 Why India and China are stockpiling gold
Global uncertainty: With rising geopolitical tensions, inflation, and fears of recession, gold is seen as a safe haven. Unlike fiat currencies, gold retains value during crises Zee News News18.
De-dollarization strategy: Both countries are reducing reliance on the U.S. dollar in international trade. Gold offers a neutral reserve asset that isn’t tied to Western monetary policy News18.
Currency protection: As central banks face pressure from volatile exchange rates, gold helps stabilize national reserves and hedge against currency depreciation Zee News.
Record prices: Gold prices have surged past ₹1.25 lakh per tola in India (approx. 11.66g), making it a lucrative asset for both governments and investors News18.
📊 How much gold are they holding?
| Country | Gold Reserves (Oct 2025) | % Increase Since 2015 |
|---|---|---|
| India | 880 tonnes | +58% |
| China | Over 2,100 tonnes | +70% |
🔮 What’s coming next?
More gold-backed trade: China is exploring gold-backed settlement systems for cross-border transactions, especially with BRICS nations.
Central bank digital currencies (CBDCs): India and China may use gold to back their digital currencies, adding credibility and stability.
Global gold demand spike: As more countries follow suit, gold prices may continue to rise, potentially reshaping global monetary dynamics.
Reduced U.S. influence: If gold replaces the dollar as a reserve benchmark, it could weaken U.S. leverage in global finance.
This gold accumulation isn’t just about wealth—it’s a strategic pivot toward economic resilience and independence. India and China are preparing for a future where traditional financial systems may be upended.
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In India, the story is no different. The Reserve Bank of India (RBI) has been increasing its gold holdings. As of October 8, 2025, the country’s total gold reserve stands at 880 tonnes, with significant storage in Nagpur and Mumbai. A portion of India’s reserve also rests with the Bank of England and the Bank for International Settlements.
Over the past decade, India has expanded its gold stockpile by almost 58%. In 2015, the nation held 557.7 tonnes of gold. By 2025, that figure climbed to 880 tonnes. This growth accelerated after 2022, as the government and the central bank viewed gold as a safe strategic asset amid rising global uncertainty.
The price of gold tells its own story. In the financial year 2023-24, gold traded around Rs 70,000 per tola. By 2025, it crossed Rs 1,05,000 per 10 grams, a reflection of worldwide instability, economic slowdown and inflationary pressure.
China has followed a similar path. Between January and September 2025, Beijing bought 39.2 tonnes of gold, pushing its total reserves to 2,298.5 tonnes as of October 8. On average, China has been adding 2-5 tonnes of gold each month. Even with a slower September purchase of 0.4 tonnes, its accumulation pace remains aggressive.
The trend is clear. Nations such as India and China are turning to gold for safety, value and sovereignty. Each new bar added to the vault signals a message to the world: when currencies shake and markets tremble, real power lies in what glitters.
