India's Gold Market Faces Modernisation Driven by Gen Z

Kolkata: India’s next gold rush may not begin at jewellery counters but on smartphones. As the digitally savvy Gen Z emerges as the fastest-growing consumer cohort, the country has a once-in-a-generation opportunity to modernise its gold ecosystem and unlock the economic potential of the estimated 31,000 tonnes of idle household yellow metal worth nearly Rs 315 lakh crore, said the ‘Swarnim Udaan 2047’ report released by the World Gold Council on Tuesday.

Gen Z, which refers to individuals born roughly between 1997 and 2012, views gold not just as heirloom jewellery but as a flexible financial asset, fuelling interest in digital gold and other technology-enabled investment products, according to the report. This cohort is expected to drive nearly $2 trillion in consumer spending by 2035.

The report said Gen Z is rapidly reshaping the country’s gold market by moving beyond traditional notions of ownership. Unlike previous generations, younger consumers are placing greater emphasis on convenience, liquidity, personalisation and responsible sourcing. Their buying journey increasingly blends online discovery with offline purchases, while investment choices are expanding beyond physical jewellery to include digital gold and other financial products.

This generational shift requires the gold ecosystem to evolve from being predominantly consumption-driven to one that integrates jewellery, technology and financial products, according to the report. Such a transformation, it said, is critical not only to remain relevant to younger consumers but also to unlock the broader contribution of gold to the economy.

India’s vast household gold holdings represent the biggest opportunity. The report estimates that Indian households own more than 31,000 tonnes of gold valued at about Rs 314.9 lakh crore ($3.4 trillion), making it one of the country’s largest yet underutilised financial assets. Mobilising even a small share of these holdings could deepen financial markets, improve liquidity, strengthen capital formation and reduce dependence on imported bullion.

To achieve this, the report recommended building an integrated ecosystem connecting the gold monetisation scheme, recycling networks, electronic gold receipts, digital gold, bullion banking and gold-backed financial products. Such interoperability would allow gold to move seamlessly between physical and financial markets, transforming dormant household assets into productive capital.

The report also highlighted that India’s gold jewellery market, valued at nearly Rs 4.5 lakh crore in 2025, is at an inflection point. While tradition and trust remain central to purchase decisions, increasing digital adoption, organised retail, mandatory hallmarking and changing consumer aspirations are redefining demand. Jewellers would increasingly need to focus on design innovation, customisation and omnichannel retail experiences to appeal to younger buyers, it said.

The report identified financialisation as one of the five pillars needed to strengthen India’s gold ecosystem, alongside boosting domestic mining, expanding jewellery exports, reimagining jewellery for modern consumers and recognising gold as a strategic national asset. Together, these measures could reduce import dependence, improve market efficiency and position gold as a stronger contributor to India’s long-term economic growth rather than merely a store of household wealth.

Sachin Jain, regional CEO India, World Gold Council, said, “At the heart of the report’s recommendations is the creation of a National Gold Board to serve as the apex body for policy coordination across the gold value chain, alongside a Gold Innovation Centre to drive research, technology adoption, digitalisation, sustainability and skill development. Together, these institutions are envisaged as catalysts for transforming India’s fragmented gold sector into a modern, innovation-led industry.”