India's love affair with gold enters a new era, thanks to Gen Z

India's love for gold remains as strong as ever, but the reasons for buying it are evolving. As Gen Z enters the market, the precious metal is becoming more than just a symbol of tradition.

In Short

• Gen Z views gold as a modern financial asset, not just tradition
• Idle household gold worth Rs 315 lakh crore could boost economy
• India aims to increase domestic gold mining to 10-15% by 2047

Gold has long been a symbol of tradition and security in Indian households. But for Gen Z, it is becoming much more than a family heirloom or a wedding purchase. Young Indians are increasingly looking at gold as a modern financial asset that combines wealth creation, flexibility and emotional value.

According to Swarnim Udaan 2047, a new report by the World Gold Council (WGC), Gen Z is expected to play a major role in shaping India's gold market over the coming decades. The report suggests that changing lifestyles, rising incomes and growing financial awareness could transform the way younger consumers buy, own and invest in gold.

GEN Z IS CHANGING THE WAY INDIA LOOKS AT GOLD

India has one of the world's largest privately held gold stocks. Much of this gold remains stored in homes and lockers, without contributing to the wider economy.

According to the WGC report, Gen Z is more open to modern ways of owning and investing in gold. This shift in thinking could encourage greater participation in products such as digital gold, gold-backed financial products and gold monetisation, helping idle household gold become more productive.

Unlike previous generations, many young consumers are comfortable combining tradition with technology. They still value gold for weddings and family occasions, but they are also exploring it as part of their long-term financial planning.

IDLE GOLD COULD BECOME PRODUCTIVE WEALTH

One of the key findings of the Swarnim Udaan 2047 report is the enormous value of gold already held by Indian households.

The report estimates that a significant amount of household gold remains idle and, if brought into the formal financial system, could unlock nearly Rs 315 lakh crore worth of economic value.

According to the WGC, encouraging greater participation in organised gold products and financial solutions could help make this wealth more productive while allowing households to continue benefiting from their gold holdings.

GOLD DEMAND IS EXPECTED TO REMAIN STRONG

The report notes that India's demand for gold is expected to remain structurally high for years to come. However, the country continues to depend heavily on imports to meet this demand.

To address this, the WGC has highlighted the need to encourage domestic gold mining alongside recycling and gold monetisation. It says India should work towards meeting 10% to 15% of its annual gold demand through domestic mining by 2047, compared with production of just 1.6 tonnes at present.

WHY DOMESTIC MINING MATTERS

The report says higher domestic production would help reduce India's dependence on imported gold and make the economy less vulnerable to global price swings and supply disruptions.

It points out that the government has already stepped up efforts by auctioning more gold mining licences across several states. India's first large-scale private gold mine since Independence has also started production, showing that private investment in the sector is beginning to grow.

A CHANGING GOLD MARKET

The WGC believes India's relationship with gold is entering a new phase. While the emotional and cultural value of gold remains unchanged, younger buyers are increasingly viewing it through a financial lens as well.

If this trend continues, Gen Z could play a key role in bringing more household gold into the formal economy while supporting new investment opportunities and strengthening India's long-term financial resilience.

According to the report, this changing mindset, combined with better use of existing gold and greater domestic production, could reshape India's gold story over the coming decades.

- Ends