The new generation sees gold more as a tool for investment and financial security than heritage, leading to a sharp decline in demand for traditional jewelry and the rise of new investment options.
In Indian families, gold has always been a symbol of heritage, security, and tradition. Grandmother's necklaces and mother's bangles, kept safe in lockers for years, were passed down as a legacy for generations.
But now, this picture is rapidly changing. The new generation, especially Gen-Z and millennials, sees gold as a multipurpose asset.
For the young generation, gold is no longer just an ornament but an important tool for achieving major goals like financial security, investment, buying a home, higher education, and starting their own ventures.
While gold jewelry was once considered 'Stridhan' and an emergency fund in Indian households, today's youth view it as a 'dead investment'. This is why old and heavy family jewelry is now being used for investment and to fulfill other material needs.
This changing mindset is directly impacting the market. The demand for traditional jewelry in the country is decreasing, while the purchase of gold as an investment is continuously increasing.
According to World Gold Council data, the net demand for gold jewelry in the first quarter of 2026 was merely 30%. This is the lowest level in the last 26 years.
In contrast, the share of gold investments like gold bars, coins, and Gold ETFs reached a record 70%.
The new generation considers gold a 'liquid asset', meaning an asset that can be quickly converted into cash when needed. While heavy jewelry was previously bought for weddings or festivals, lightweight jewelry, gold bars, coins, and Gold ETFs are now being prioritized. There are several solid reasons behind this.
Making Charges and Wastage: A making charge of 10% to 25% is applied when buying jewelry, which is not refunded upon selling. In comparison, buying and selling gold bars, coins, and ETFs is easier and more profitable.
Locker Expenses: Heavy jewelry needs to be kept in a bank locker for safety, the annual rent of which is an additional burden.
Trend of Old Gold Exchange: According to jewelers, 40% to 60% of their sales come from customers exchanging old gold for new jewelry. People prefer to trade heavy ornaments for 'lightweight' or studded jewelry.
According to the World Gold Council, a major structural shift has been observed in the demand for gold.
In the first quarter of 2026, the demand for jewelry decreased by 19% to 66 tonnes, compared to 81 tonnes last year. Meanwhile, the demand for investment (bars, coins, ETFs) increased by 54% to 82 tonnes, up from 53 tonnes last year.
Spending on bars and coins increased by 142% to ₹941 billion. Investment in Gold ETFs broke all records, with a massive 436% increase, attracting ₹300 billion in investment.
To understand this changing trend, some real-life examples are important.
A Marwari family in Ahmedabad, instead of selling about 2 kg of gold in 2017, took a gold loan against it. With this capital, they bought land. Over the past nine years, not only has the value of the land multiplied, but the price of gold has also reached a record high. Today, the combined value of their two assets is over ₹8 crore. Financial advisors consider this a successful example of 'asset leverage'.
A young couple in Mumbai raised about ₹20 lakh by selling traditional gold jewelry they inherited. 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 about ₹20,000. They believe that their own home has proven to be a much more useful and better investment compared to the jewelry that was locked away for years.
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