Gold

Beyond Adornment: How Gold is Redefining Women’s Financial Independence in India

How women are shifting from gold jewelry as a cultural symbol to using it as a strategic investment and asset for financial security.

Gold is Redefining Women’s Financial Independence
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By Aksha Kamboj, Executive Chairperson, Aspect Global Ventures & VP, India Bullion and Jewelers Association (IBJA)

Gold has been a part of Indian life for centuries, particularly of women. Traditionally considered to be a reflection of prosperity, status, and beauty, gold ornaments have played an important role in weddings, festivals, and family customs. Yet, in the last few years, something of a revolution has been in progress. Indian women are no longer wearing gold simply to adorn themselves for cultural and emotional purposes; they are also recognizing its potential as a strategic investment and a financial asset that guarantees their independence.

Gold has been an integral component of a woman's financial security in India for centuries, if only in an unofficial sense. Traditionally, families have presented daughters with gold jewelry as part of their weddings as a fallback, so they have money in case anything goes wrong. The custom, deeply ingrained in the social fabric, reveals the role of gold as a preservation of wealth. Yet it was viewed largely as a decorative asset and not an active financial move.

With enhanced financial awareness and improved economic ambitions, Indian women are currently using gold beyond its use as a simple ornament. Gold is currently being discovered to be an excellent investment instrument, which provides stability and liquidity. Increasing gold prices and economic turmoil have motivated women to invest in gold as a necessary component of their investment portfolio. Gold Exchange-Traded Funds (ETFs), sovereign gold bonds, and gold in an electronic format are increasingly becoming popular as investment channels relative to physical gold.

Increased availability of information has been the pivotal driver for this change. When individuals become educated about finances through advisory services, internet platforms, and financial knowledge, women take well-informed decisions on growing their wealth. They now perceive that gold can yield a strong return when used strategically and help protect them against inflation and foreign exchange movements.

One of the most significant effects of this change is the increasing feeling of economic independence among Indian women. Holding gold in liquid form like ETFs or gold bonds is such that they are able to raise money without the permission of the family or society. This is especially liberating for women who live in rural and semi-urban regions, where financial inclusion is a work in progress. The option to exchange gold for cash without losing physical jewelry provides a new feeling of security and ownership of one's money.

Banks and microfinance units are also not far behind this trend by lending gold loans at fair rates of interest. Small business owners, homemakers, and women entrepreneurs are mortgaging gold as collateral to receive funds for their business activities to bridge the mismatch between old-time assets and new-time opportunities.

Technology has equally altered how gold is invested by women. The availability of websites where digital gold is bought, it is easy to buy and sell gold in small amounts so that it can be made simpler and more readily accessible. The need for gold to be bought in bulk, as well as the issue of storage, has disappeared. Digital gold also allows diversification as one can invest some money and become wealthy in the long run.

In spite of this change, challenges persist. Conventional thinking and family pressure tend to guide women in the way they deal with their assets, and most continue to treat gold as just a family treasure and not as an investment tool. There is also a necessity for more organized financial education schemes for women in order to increase their investment confidence.

Gold is no longer simply a sign of beauty and tradition for Indian women; it is becoming an important financial tool that empowers them with autonomy and security. It is also the only commodity in the world which is considered as an investment and acts as a currency in crisis situation. With the investment in gold, women are securing their financial future, defying traditional norms, and promoting economic empowerment. As this evolution takes place, gold will continue to redefine the place of women in India's economy, closing the gap between cultural tradition and contemporary financial planning.

Aksha Kamboj
Aksha Kamboj
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(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)

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