The report highlights the need to align gold monetisation and pension-linked investments with India’s broader economic goals.
The State Bank of India (SBI) Research has called for the creation of a long-term policy framework that formally integrates gold into the nation’s financial ecosystem. The proposed policy aims to clarify gold’s identity — whether it should be classified as a commodity or a form of money — while acknowledging its dual significance as an investment avenue and a symbol of tradition.
SBI’s research underscores that India’s relationship with gold is both emotional and economic, making its inclusion in financial reforms essential. It suggests initiatives such as gold-backed pension plans and enhanced monetisation schemes that can channel idle household gold into productive use, contributing to national economic growth.
With gold prices climbing over 50% in 2025 amid global uncertainty, the appetite for gold-based investments has soared. Assets under management in gold exchange-traded funds (ETFs) surged 165% year-on-year, reaching ₹901.36 billion by September. Additionally, discussions are underway to expand pension fund portfolios to include investments in gold and silver.