Young Indians Like Gold More Than New Investments

A recent survey found that most young people in India prefer to invest in gold. They think gold is a safe place for their money, even more than stocks or digital money. Many are buying small pieces of gold instead of big amounts.
By Newsroom | Finance, India |

A recent survey indicates a significant preference among young Indians for gold as an investment, often outweighing newer financial options. This trend, observed across Generation Z and Millennials, suggests a complex interplay between tradition, perceived security, and evolving personal financial decision-making.

From first salary to first investment — Why young Indians are choosing gold - 1

The survey, which questioned 5,000 individuals aged between 18 and 39, reveals that approximately 62% of young Indians would choose gold if given ₹25,000 to invest. This figure stands in stark contrast to other investment avenues: mutual funds (around 16.6%), fixed deposits (about 13%), stocks (nearly 6.6%), and cryptocurrency (under 2%). The data further suggests a notable shift in purchasing habits, with a substantial majority of recent gold acquisitions being small, often under 5 grams.

From first salary to first investment — Why young Indians are choosing gold - 2

Shifting Patterns in Gold Acquisition

The nature of gold purchases among young Indians appears to be undergoing a transformation.

From first salary to first investment — Why young Indians are choosing gold - 3

  • Smaller Transaction Sizes: The survey highlights a move away from large, infrequent purchases. Data indicates that nearly 62% of recent gold purchases were below 5 grams. A detailed breakdown shows 27.5% bought less than 2 grams, and 34.4% purchased between 2 and 5 grams.

  • Personal Decision-Making: A significant shift is observed in who makes the decision to buy gold. Around 66.7% of respondents stated that gold purchases are largely their personal choices, moving away from tradition-driven decisions.

Perceived Security and Trust in Gold

Despite increased access to diverse financial products, gold retains its standing as a preferred investment, particularly due to its perceived safety.

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From first salary to first investment — Why young Indians are choosing gold - 4

  • Safe Haven Asset: Roughly 65.7% of young Indians feel that gold is the safest option compared to bank savings, mutual funds, or equities, especially during times of economic uncertainty. This perception underscores its role as a financial fallback.

  • Enduring Relevance: Gold's status as a reliable financial asset for both Gen Z and Millennials persists, even as digital platforms and modern investment tools gain traction.

Evolving Motivations for Investment

The reasons behind investing in gold are also evolving, blending traditional appeal with individual aspirations.

  • Individual Milestones: For some, gold is now linked to personal achievements and milestones, such as receiving their first salary. This represents a move towards a more individual, logic-driven approach to finances.

  • Tangible Value: Young investors believe gold offers a tangible and long-term value, which may contribute to its continued appeal amidst fluctuating digital asset markets.

Expert Insights on the Trend

The survey's findings point to a deliberate and informed approach by younger investors.

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  • "The survey reveals a fundamental shift in how young Indians are approaching gold," states one report. It notes that Gen Z is more confident in deciding when and how to buy, treating gold as a self-led financial choice.

  • Another observation suggests that "tradition-led buying is steadily giving way to a more individual, logic-driven approach." This indicates a generation that values personal agency in financial planning.

Conclusion and Implications

The consistent reporting across multiple sources emphasizes that gold remains a primary investment choice for a significant majority of young Indians. This preference is driven by a perception of safety, particularly in uncertain economic climates, and a growing trend towards smaller, more frequent, and personally decided purchases. While modern financial products are accessible, gold's tangible nature and historical association with value continue to resonate. The findings suggest a generation that is carefully considering its investments, blending traditional asset classes with a modern, self-directed financial outlook.

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Frequently Asked Questions

Q: What do young Indians prefer to invest in?
A survey shows that most young Indians prefer to invest in gold. They like it more than other options like mutual funds or stocks.
Q: Why do young Indians like gold for investing?
Many young Indians feel that gold is the safest place to put their money. They think it is a good choice, especially when the economy is not stable.
Q: How are young Indians buying gold?
They are often buying smaller amounts of gold, like pieces that weigh less than 5 grams. More young people are also making the choice to buy gold themselves.