Editor’s Note
**Editor’s Note:** This article explores a generational shift in how gold is perceived—from a traditional symbol of security and heritage to a modern tool for financial goals and investment.
The younger generation now views gold not just as jewelry, but as a crucial means to achieve major goals such as financial security, investment, buying a home, higher education, and starting their own ventures.
Previously, gold ornaments in Indian households were considered ‘Stridhan’ (women’s wealth) and an emergency fund, but today’s youth see them as a ‘dead investment’. This is why old and heavy family jewelry is now being used to meet investment and other material needs.
This shift in mindset is directly impacting the market. Demand for traditional jewelry is declining in the country, while purchases of gold as an investment are steadily increasing.
According to data from the World Gold Council, net demand for gold jewelry in the first quarter of 2026 was only 30 percent. This is the lowest level in 26 years.
In contrast, the share of gold investments such as gold bars, coins, and gold ETFs reached a record 70 percent.
The new generation considers gold a ‘liquid asset’—an asset that can be quickly converted into cash when needed. While heavy jewelry was previously bought for weddings or festivals, now lightweight jewelry, gold bars, coins, and gold ETFs are being preferred. There are several solid reasons behind this.
- Making Charges and Wastage: Buying jewelry involves making charges of 10% to 25%, which are not recovered when selling. In comparison, buying and selling gold bars, coins, and ETFs is easier and more profitable.
- Locker Costs: Storing heavy jewelry requires a bank locker, whose annual rent is an additional burden.
- Old Gold Exchange Trend: According to jewelers, 40% to 60% of their sales come from purchasing new jewelry in exchange for old gold. People are preferring to give heavy ornaments and take ‘lightweight’ or studded jewelry.
According to the World Gold Council, a major structural shift in gold demand has been observed.
Jewelry vs. Investment: In the first quarter of 2026, jewelry demand fell 19% to 66 tonnes, compared to 81 tonnes last year. Meanwhile, investment demand (bars, coins, ETFs) rose 54% to 82 tonnes, up from 53 tonnes last year.
Record Surge in Investment: Spending on bars and coins surged 142% to 941 billion rupees. Investment in gold ETFs broke all records, with a massive 436% increase, reaching 300 billion rupees.
Some real-life examples are important to understand this changing trend.
Case Study 1: 2 kg of Gold Becomes the Basis for 8 Crore Wealth
A Marwari family in Ahmedabad took a gold loan on approximately 2 kg of gold in 2017 instead of selling it. They used this capital to buy land. Over the past nine years, not only has the land value multiplied, but the price of gold has also reached record levels. Today, the combined value of both assets exceeds 8 crore rupees. Financial advisors consider this a successful example of ‘asset leverage’.
Case Study 2: First Home Bought with Grandmother’s Jewelry
A young couple in Mumbai raised about 20 lakh rupees by selling traditional gold jewelry inherited from their grandmother. They used this amount for the down payment on their first home in Navi Mumbai. Due to the higher down payment, their monthly home loan EMI was reduced by approximately 20,000 rupees. They believe that owning their own home has proven to be far more useful and a better investment for them than jewelry locked away for years.
