Gold tops investment choices for Gen Z and Millennials, shift to smaller, self-led purchases: Survey

Gold continues to hold a special place in the investment preferences of young Indians, with 62% of Gen Z and Millennials still backing the yellow metal as the safest investment option, even as buying behaviour undergoes a noticeable shift. A nationwide survey by Smytten PulseAI shows that while trust in gold remains intact, younger consumers are increasingly making independent, smaller-ticket purchases driven by personal milestones rather than traditional family-led decisions.

The survey, conducted among 5,000 consumers aged 18 to 39, highlights how gold buying is becoming more self-led and pragmatic. About 66.7% of respondents said their gold purchases today are largely personal decisions, marking a move away from purely tradition-driven buying. Reflecting this shift, 61.9% reported that their most recent gold purchase was below 5 grams, signalling that gold is increasingly being treated as a flexible investment and savings tool, often linked to first salaries or early income streams.

Despite growing access to modern financial products such as mutual funds, equities and digital assets, gold continues to dominate when safety is the priority. The survey found that 61.9% of respondents would choose gold if they had ₹25,000 to invest today, far ahead of mutual funds at 16.6%, fixed deposits at 13%, stocks at 6.6% and crypto at just 1.9%. During periods of economic uncertainty, 65.7% said gold feels like the safest option, reinforcing its enduring role as a financial fallback across both Gen Z and Millennials.

Decision-making dynamics, however, reveal a generational nuance. While family influence still matters, 42.3% said they personally initiated the most recent gold purchase in their household, compared with 40% who cited parents or elder family members. Gen Z appears more confident in deciding when and how to buy gold, viewing it as a self-directed financial choice. Millennials, by contrast, continue to associate gold with household planning and long-term security, where collective family priorities play a larger role.

The survey also points to a clear move towards smaller and more frequent purchases. Nearly 27.5% bought less than 2 grams, while 34.4% purchased between 2 and 5 grams. Around 42% of households now prefer lighter, periodic buying, although a majority still make one-time purchases tied to occasions. Notably, 24.3% said their first gold purchase was triggered by their first salary, while 23.9% cited an investment decision, indicating that weddings are no longer the sole entry point into gold ownership.

Trust continues to outweigh convenience when it comes to buying channels. Nearly 38.3% prefer large branded jewellery chains, while 34.7% rely on neighbourhood jewellers. Online platforms remain marginal at 5.2%, largely due to concerns around purity, authenticity and hidden charges.

Interestingly, post-purchase hesitation is widespread. Over 67% admitted to feeling regret after buying gold, mainly due to price paid, confusion over formats and lack of information. Yet intent remains strong, with over 84% likely to buy gold in the next 12 to 24 months, underscoring that while buying behaviour is evolving, faith in gold as a safe asset remains firmly intact.