Summary of this article
Jewellery dominates gold preference across younger consumers
Coins and bars trail behind jewellery purchases
Digital gold sees minimal preference share
Gold remains one of the favourite assets for Gen Z and Millennials. Despite access towards digital investment platforms, exposure to equities, and other financial items, Gen Z and Millennial consumers are actively investing in gold.
A recent report by Smytten PulseAI, titled From Shaadi Gold To Strategy Gold: How modern India buys its most trusted asset, has revealed that 43 per cent of consumers associate gold primarily with safe investment, while 26 per cent connect gold directly with financial security.
Around 7 in 10 respondents have stated that logic and expected returns matter more than emotional comfort when making a purchase decision involving gold.
In times of economic uncertainty, 66 per cent deem gold to be the safest choice. When asked how they would invest a fixed sum of money like Rs 25,000, a significant proportion say they prefer gold, because it is deemed stable.
Gold As A Financial Asset
Among Gen Z, 28 per cent associate gold jewellery, coins and bars with financial security. Entry into buying physical gold for this group often coincides with the start of regular income and early savings activity.
Millennials also prefer physical gold, with some viewing physical gold as a protective asset. Around 9 per cent describe gold as a backup during uncertain times. For this group, gold typically forms part of a broader savings or investment mix.
Across both generations, physical gold is positioned not only as a cultural purchase but also as a planned financial allocation.
Shift Towards Smaller And Frequent Purchases Of Gold
Buying patterns show a move towards smaller quantities of gold. Almost 44 per cent of consumers bought gold in the past 6 months. Around 62 per cent of the total gold is below 5 grams. This highlights a gradual pattern of accumulation of gold rather than dependency on large, one-time purchases.
Among Gen Z, 56 per cent of gold purchases are below 5 grams. Millennials have portrayed comparatively higher levels of participation in the range of 5- to 10-gram and more than 10-gram, and amounting to 46 per cent of their purchases.
Gold bought for investment is often in the 2- to 10-gram range, reflecting a structured and incremental buying approach.
Offline Retail Channels Drive Gold Sales
Retail jewellers are still the number one purchase channel of gold. Around 86 per cent of households purchase gold from physical stores.
Gen Z has a balanced preference between branded jewellery chains and local jewellers, with 39 per cent opting for each. Millennials are stronger in terms of inclination towards local jewellers, with 28 per cent and 14 per cent continuing to rely on family jewellers.
Online purchases of gold make up a small percentage. Around 3 per cent of Gen Z and 8 per cent of millennials say they bought gold jewellery, coins and bars online.
Concerns regarding the purity and authenticity of gold are cited by 31 per cent of respondents as barriers to online buying. Around 29 per cent mention hidden charges in transactions involving gold jewellery, coins and bars as a concern.
Purchase Regret Linked To Pricing
Around 67 per cent of buyers report experiencing buyer's remorse or hesitation after purchasing gold. Among them, 39 per cent attribute it to the price paid, while 34 per cent cite dissatisfaction with the format of gold jewellery, coins and bars selected.
Less than 5 per cent indicate family pressure as a reason for purchasing gold.
Preference In Jewellery, Coins, Bars And Digital Gold
Jewellery is still the most popular form of gold for consumers. Around 42 per cent say they prefer jewellery for long-term holding, making it the largest category.
Another 30 per cent prefer jewellery for occasions, indicating that ceremonial buying continues with investment-oriented purchases.
Coins and bars have an 18 per cent preference. These formats are more directly linked to investment intent but are still smaller in share in comparison to jewellery.
Digital gold makes up 5 per cent, the lowest preferred format of options listed.
The data reveals that jewellery, both for long-term holding and occasions, is the dominant form of preference, with a smaller portion of coin, bar and digital gold forming consumer choice.
