Young Indians Unleash Gold's Hidden Value

A trend is emerging among younger Indians to treat inherited gold as an asset that can be used to finance major life goals, rather than just keeping it locked away as a family heirloom.

In Mumbai, a couple in their late 20s decided to sell their heavy gold bangles and other jewellery to buy their first home in Navi Mumbai. The gold fetched them nearly Rs 20 lakh, which helped strengthen their down payment and reduced their monthly home loan instalment by around Rs 20,000.

The couple is part of a wider shift among younger Indians who are increasingly looking at inherited gold as a means to achieve their goals. Keyur Shah, CEO of Muthoot Exim, says that 'younger generations are driven by milestones' and no longer feel compelled to hold on to old jewellery.

Other families are using the money from selling inherited gold to finance needs such as higher education, a business, or financial investments. ICRA expects India's domestic jewellery industry to grow around 15% in value this year, driven by high gold prices and investment demand.