Since 2000, gold has returned almost 16 per cent whereas the Sensex has returned 11 per cent.
Naturally, India holds the largest stock of gold at an estimated 18000 tonnes.
The actual figures would be much higher if one took into account the stock lying idle in temples and private lockers.
The dependence on gold reveals the inadequacy of India's financial sector.
Solving the gold riddle will need the sector to raise its game, by devising products that offer returns more attractive than those from the yellow metal.