India's ₹315 lakh crore gold stock could power the economy. Here's how Gen Z holds the key

India's next gold revolution may be driven less by jewellery purchases and more by digital investments as Generation Z reshapes the country's relationship with the precious metal, according to the World Gold Council's (WGC) Swarnim Udaan 2047 report.

The report estimates that Indian households hold more than 31,000 tonnes of gold worth nearly ₹315 lakh crore ($3.4 trillion)—one of the world's largest stores of privately held gold. However, much of this wealth remains locked away in lockers and households rather than contributing to the broader economy.

The World Gold Council believes Gen Z, born between 1997 and 2012, could play a pivotal role in changing that.

Unlike previous generations, which largely viewed gold as jewellery, a family heirloom or a store of wealth for weddings and special occasions, Gen Z increasingly sees gold as a financial asset that offers liquidity, flexibility and convenience. This shift is driving growing interest in digital gold, gold-backed financial products and other technology-enabled investment options.

The report notes that Gen Z's influence is likely to grow significantly over the next decade, with the cohort expected to account for nearly $2 trillion in consumer spending by 2035. As their purchasing power rises, so too will their ability to reshape India's gold ecosystem.

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According to the WGC, younger consumers are also changing how they buy gold. Instead of relying solely on traditional jewellery stores, they increasingly combine online research with offline purchases and place greater emphasis on design, personalisation, transparency and responsible sourcing.

Turning idle gold into productive capital

The report argues that India's vast household gold holdings represent a significant untapped economic opportunity.

Mobilising even a fraction of the country's estimated 31,000 tonnes of household gold could deepen financial markets, improve liquidity, support capital formation and reduce India's dependence on imported bullion.

To achieve this, the WGC recommends creating a more integrated gold ecosystem that connects the Gold Monetisation Scheme, gold recycling, electronic gold receipts (EGRs), digital gold, bullion banking and gold-backed financial products. Such an interconnected system would allow gold to move seamlessly between physical ownership and financial markets, transforming dormant household assets into productive capital.

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Jewellery market at an inflection point

The report also highlights that India's ₹4.5 lakh crore jewellery market is entering a period of structural change.

While trust and tradition remain central to gold purchases, organised retail, mandatory hallmarking and digital adoption are changing consumer expectations. Jewellers will increasingly need to focus on innovation, customisation and omnichannel experiences to remain relevant to younger buyers.

The report identifies financialisation as one of the five key pillars for strengthening India's gold ecosystem, alongside expanding domestic mining, boosting jewellery exports, reimagining jewellery for modern consumers and recognising gold as a strategic national asset.

Sachin Jain, Regional CEO, India, World Gold Council, said the report recommends establishing a National Gold Board to coordinate policy across the gold value chain and a Gold Innovation Centre to promote research, digitalisation, technology adoption, sustainability and skill development.

According to the WGC, if India succeeds in aligning its traditional affinity for gold with Gen Z's digital-first investment preferences, the country's vast household gold reserves could evolve from dormant wealth into a productive economic asset that supports long-term growth.

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