The State Bank of India (SBI) Research has urged the government to frame a comprehensive long-term gold policy to clearly define whether gold should be treated as a commodity or money, and to recognise its dual role as an investment and a cultural asset.

According to a report by Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor at SBI, cited by IANS, India’s strong emotional and financial connection to gold makes it vital to integrate the metal into broader financial reforms. The study noted that while the West views gold as public property, in Asia — particularly India, China, and Japan — it remains a symbol of personal wealth and security.

The report, suggested exploring gold monetisation and gold-backed pension schemes, linking them with long-term economic goals.

Gold prices have surged over 50% in 2025 amid global uncertainty, boosting inflows into gold ETFs, whose assets under management rose 165% year-on-year to Rs.901.36 billion as of September. The Pension Fund Regulatory and Development Authority is also considering allowing pension funds to invest in gold and silver.