Global wealth reaches $570 trillion amid rising asset valuations

The global financial balance sheet has reached nearly $1.8 quadrillion, driven largely by rising asset valuations rather than new productive investment. According to research from the McKinsey Global Institute, global household wealth hit a record $570 trillion in 2025. While households gained approximately $40 trillion in wealth during that year, only about 20 percent of that increase originated from net new capital formation; the majority resulted from inflation and higher valuations of existing assets.

The composition of wealth is shifting, with equities accounting for 57 percent of the increase in global household wealth in 2025, compared to 15 percent for real estate. In the United States, equity values have risen to approximately 2.4 times corporate net assets.

In India, rising gold prices are expected to significantly impact the economy. Jefferies reports that gold's share of total household wealth rose to 24.2 percent in March 2026. The brokerage estimates that a further 10 percent rise in gold prices could generate $400 billion in additional household wealth. Increased monetization of gold through loans could add between 80 and 100 basis points to GDP and consumer spending. However, gold imports remain a significant factor in the economy, with the import bill rising to $79 billion in FY26, representing roughly 2 percent of India's GDP.