How One Family Turned India's Gold Obsession Into a Fortune

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00:00Gold is on a tear, and this billionaire family is reaping the benefits.

00:06Indians don't just like gold, they hurt it.

00:10Households own about 34,600 tons, value at around 3.8 trillion US dollars.

00:18That's more than the combined official reserves of the seven major world powers,

00:23the US, Germany, Russia, China, and the rest of the G7.

00:28The Indian Mutut family have been offering gold loans for just under a century,

00:35and they are currently on a winning streak as consumers are taking advantage of soaring prices

00:41to swap jewelry for short-term cash.

00:45The company's stock has risen to a record high,

00:48boosting the Mutut family fortune to above $10 trillion for the first time.

00:55Their business model is simple.

00:57Clients bring their jewelry to a branch, where staff checks gold content

01:02before making a loan of up to 75% of the value.

01:08Borrowers typically take out loans for 4 to 12 months

01:11before returning to reclaim their loans after they repay the loan.

01:16The biggest challenge for Mutut so far is competition.

01:21About 90% of their entire earnings still relies on gold loans.

01:26To keep their financial empire going long-term,

01:30they will have to stay on top of the game

01:32and perhaps prove they can sell anything else.

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