NEW DELHI: India’s innate fascination with gold continues as Indian households hold gold worth over $950 billion which in turn is around 50% of the country’s GDP in dollar terms, says a report.

Gold consumption is part of India’s culture and tradition and the country is the world’s largest consumer of gold, followed by China. Indian households hold 18,000 tonnes of gold which represents 11% of the global stock and worth more than $950 billion, around 50% of India nominal GDP in dollar terms, says global research firm Macquarie .

According to Macquarie, 78% of India’s $329 billion in household savings was held in gold in 2009-10 . With gold evolving as a store of value more than an adornment, rising prices have also contributed towards increasing Indian households’ “perceived wealth”.

Macquarie used the term “perceived wealth” because most Indian households are reluctant to part with their gold jewellery and other gold holdings, even at times of crisis , as doing so is considered a stigma, it said.