Gold, one of the rarest elements found in the Earth’s crust, has stood the test of time over thousands of years. Gold, a versatile element, is used in various industrial applications beyond its wearable status.
However, what distinguishes it from all other asset classes is its reputation as the ‘bedrock’ of safe-haven wealth.
It’s not just people like you and me, even institutions hold a portion of their savings in gold. India’s central bank, the Reserve Bank of India (RBI), has a significant amount of gold holdings. What’s more, the RBI has been aggressively buying gold over the past few years.
RBI’s Gold Rush
The share of gold in the RBI’s Forex kitty has increased by 25% since 2021. RBI is not alone. Central banks worldwide have been significant gold buyers in recent years. Over the last 3 years, central banks added over 1,000 tonnes of gold to their forex reserves.
In the rare instance you are wondering why central banks buy gold with public money, read my detailed note here…
RBI’s data show that the exposure to gold in India’s forex reserves (in dollars) rose from 5.87% in March 2021 to 11.7% in March 2025. In just four years, the RBI’s allocation to gold assets has doubled.
In terms of hard numbers, Foreign Exchange Reserves of the RBI are $690 billion (as of May 9), of which gold is worth $86 billion. This means nearly 12.46% of India’s forex reserve is held in gold.
Interestingly, most financial planners in India suggest not holding more than 10% of their portfolio in gold. RBI just crossed that golden line.
In 2024 alone RBI bought 57.5 tonnes of gold. The interesting part of RBI’s gold holdings is how it physically stores the precious metal. Where exactly and in what form?
“As of March 2025, the Reserve Bank held 879.59 metric tonnes of gold, of which 511.99 metric tonnes were held domestically. While 348.62 metric tonnes of gold were kept in safe custody with the Bank of England and the Bank for International Settlements (BIS), 18.98 metric tonnes were held in the form of gold deposits,” reads the RBI’s Half Yearly Report on Management of Foreign Exchange Reserves published on May 5.
How Much Gold Can You Keep at Home
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