In recent years, the landscape of gold investment in India has begun to shift. Traditionally, gold has held a prominent place in the savings and investment strategies of many Indians, symbolising both wealth and security. However, as digital platforms gain traction, a new trend is emerging among consumers, particularly millennials. A recent survey by Moneyview reveals that 65% of millennials prefer digital gold over physical gold, driven by the convenience and accessibility that digital platforms provide.
This evolving preference highlights a significant change in investment behaviour. Digital gold allows for fractional ownership, enabling consumers to invest smaller amounts without the complexities associated with physical gold, such as finding reputable dealers and ensuring safe storage. As more individuals turn to technology for their financial needs, the appeal of digital gold continues to grow. Nearly 70% of respondents believe that gold’s reputation as a safe asset positively influences their savings habits, reinforcing its longstanding position as a cornerstone of wealth preservation.
The survey, which included responses from 3,000 participants, indicates that over 75% of respondents under the age of 35 favor digital gold due to its liquidity. This preference is particularly notable among middle-income groups, who appreciate the flexibility of purchasing gold in smaller increments, starting as low as ₹10. In contrast, high-income groups still lean towards physical gold, often buying in larger quantities.
Urban consumers are leading the charge in adopting digital gold, aided by higher digital literacy and internet access. Conversely, rural consumers, who have traditionally preferred physical gold, are gradually recognizing the benefits of digital platforms, particularly through mobile apps and fintech solutions like Moneyview.
“Digital gold is revolutionizing the way people invest in this timeless asset. The ease of access, lower entry barriers, and enhanced security make digital gold a highly convenient and valuable option for today’s investors. As fintech platforms continue to offer innovative solutions, we believe digital gold will play a pivotal role in shaping the future of gold investments, empowering individuals across demographics to diversify and secure their financial futures,” Sushma Abburi, chief business officer, Moneyview, said.
Key findings from the survey highlight the changing dynamics of gold investment in India. Over 85% of respondents view gold as a valuable asset for wealth preservation, supported by its intrinsic value and historical performance. Assured purity, insured storage, and affordability due to systematic investment plans (SIPs) are driving interest in digital gold.
Digital gold enables investors to purchase gold in real-time without the need for physical storage or transportation, allowing for minimal upfront costs. This approach ensures security and peace of mind, as the gold is backed by 24k gold stored in insured vaults. More than half of the respondents indicate that the ability to invest in fractional amounts is a major factor influencing their investment decisions.
In summary, while physical gold retains popularity among specific demographics, the survey underscores the growing trend toward digital gold. With increasing adoption across income levels and age groups, digital gold’s accessibility, flexibility, and security position it as a viable option for both new and experienced investors. As India continues to embrace digital solutions, the landscape of gold investment will likely continue to evolve, shaping the future of savings and wealth management.