Gold prices, Feb. 4 -- Indians have long had a deep affinity for gold. The latest surge in gold prices has turned that cultural preference into a significant financial windfall, sharply lifting the value of the yellow metal accumulated by households over decades.

As per UBS' estimates, India has the largest stock of gold in the world, with 28,000 tonnes held by households, including temples.

With gold prices rising at a 42% CAGR between FY24 and FY26 (as of end-January), the value of gold held by Indian households is now estimated at around $4.5 trillion, according to UBS - exceeding India's nominal GDP of roughly $4 trillion in FY26.

However, unlike high equity returns (NIFTY TRI) during FY21-FY23 (26% CAGR), which significantly boost...