Gold is transforming from a traditional heirloom to a strategic financial asset for Indian investors. In the March quarter of 2026, investment demand for gold surpassed jewellery consumption for the first time, a trend that continued in the June quarter. Younger Indians, particularly millennials and Gen Z, are leading this shift, exchanging inherited ornaments for bars, coins, and digital gold to fund homes, education, and businesses. The World Gold Council notes a gradual 'financialisation' of gold holdings, driven by better digital access.
The preference for gold as an investment is reflected in the formats investors choose. Bars and coins remain popular for their purity and direct price linkage, while digital gold and exchange-traded funds (ETFs) are widening access. Indian gold ETF holdings nearly doubled from about 40 tonnes in early 2024 to 98 tonnes by early 2026. Around 14 crore Indians now use digital gold, with an average ticket size of just ₹100, making it accessible for first-time savers.
As gold moves from lockers to portfolios, trust and transparency become crucial. The Government of India is reportedly discussing requirements for digital gold to be backed by physical bullion, with oversight by the Reserve Bank of India and SEBI. The industry has formed the Digital Precious Metals Assurance Council of India (DPMACI) to standardise buying, selling, and storage of digital gold, reflecting collective efforts to strengthen trust and accountability.
The gold market in India is evolving, with investors weighing it as an inflation hedge, diversifier, and store of value. The next chapter in this transformation will be shaped by institutions that make gold verifiable, accessible, and trustworthy. Investors are asking harder questions about purity, transparency, and physical backing, and the industry is calling for oversight to match the scale of participation.