MUMBAI: With gold price breaking new records almost every day—the metal has set more than 30 records this year so far—and is nearing the $4,200 mark ($4,190/oz around noon IST) for an ounce or for 28.35 grams Tuesday, here is an interesting comparison of the value of the most shining metal, which has so far gained more than 62% so far this year and 27% last year and 24% in the year before that.
And the gold held by our households is worth close to 89% of the national GDP or over $3.8 trillion, according to a recent note by Morgan Stanley when the metal was trading at a little over $4,000 and ounce.
According to an industrialist and chairman of the RPG Group, Harsh Goenka's X post, in 1990, 1 kg of gold could get one a Maruti 800, and the same quantity amount the metal can today be traded for a Land Rover. The same metal hopefully will be worth a Rolls-Royce in 2030, and by 2040 it should pay for a private jet,” highlighting the metal’s phenomenal appreciation.
His observations come amid the blistering rally in gold prices, which have jumped more than 62% this year, after rising 27% last year and 24% the year before.
“In 1990, 1 kg of gold could buy a Maruti 800. By 2000, it was worth a Maruti Esteem. In 2005, it matched the price of a Toyota Innova. By 2010, a Toyota Fortuner. In 2019, a BMW, and in 2025, a Land Rover,” Goenka wrote, highlighting the enduring value of gold as a long-term investment, using a creative analogy to show how the yellow metal’s purchasing power has grown exponentially over the decades.
“Lesson: Keep the 1 kg gold—in 2030 it may equal a Rolls Royce, and in 2040, a private jet,” Goenka quipped, highlighting the metal’s phenomenal appreciation driven currently by latest trade tension between the US and China, continuing demand for the central banks—the Reserve Bank holds as much as 13.6% (over 890 tonne) of its close to $700-billion of forex reserves in gold today, having bought close to 57.5 tonne in 2024 which was the second-highest annual purchase in seven years but has moderated to just 3.8 tonne so far this year.
Other reasons are the rising demand for non-physical gold by way of gold bonds and exchange-traded funds. Also, driving the demand and prices is the fact that many countries are diversifying their reserves away from the US dollar, taking official gold buying to multi-decade highs.
Data from the World Gold Council (WGC) shows that Indian gold ETFs recorded $902 million in net inflows in September 2025, up 285% from August, making the country the fourth-largest contributor globally after the US, England, and Switzerland.
Similarly, data from the Association of Mutual Funds (Amfi) indicates that gold ETF inflows have jumped to Rs 8,363 crore in September, compared to Rs 2,190 crore in August -- a spike of 282%, taking the total assets under management for gold ETFs to over Rs 90,000 crore.
