Shift from traditional jewellery to digital gold is driven by rise of tech-savvy investors, affordability, security and convenience. Fractional ownership helps smaller investors with a transparent way to buy, sell and store gold.
The digital transformation has integrated advanced technologies in inventory management, customer engagement and jewellery operations. Hallmark security certifications with superior quality products give a better customer experience.
Traditional jewellers with physical outlets have established their digital presence, and the retail sales are digitally influenced. Jewellers blend their physical stores with their digital platforms. Jewellers are creating a shopping experience combining the online convenience of selection and physical outlets for purchases. Jewellery websites also now offer customised product suggestions and content, some use AI to enhance customer engagement strategies.
Hybrid strategies: Offline stores excel in personalised experiences, while online platforms offer ease and variety. Together, they create a balanced and customer-centric approach.
Change in Investment Mindset (People see gold as financial asset, specially Gen Z)
Digital Gold Investment has been the new norm of a practical approach of investment among Gen Z, helping create long-term wealth. They represent more than 28 per cent of India’s population with entrepreneurial ambition, financial independence, digitally driven and technology empowered.
They see gold as a financial asset class amongst other financial markets.
The tech-savvy Gen Z, with financial literacy is interested in saving and investing with requisite exposures to capital markets, portfolio management and risk management. The change in investment attitude extends beyond current requirements to considering retirement, financial freedom and business-building.
Investing at an early age of 25-28, COVID-19 pandemic and social media has contributed to the Gen Z change in investment mindset. Finfluencers have helped Gen Z bridge the gap between academic theory and real-world application. Gen Z is leveraging technology to make savvy financial choices.
Digital technology (trading interfaces C payment systems of unified payments interface) is at the forefront of Gen Z’s finances who have increased appetite for investment. There have been record UPI transactions by Gen Z, as reported by National Payments Corporation of India (NPCI).
Popularity goes by the convenience in investing, real time pricing with consistency, without hassles of physical storage, giving a sense of security in investing. Historically, the price of digital gold tends to rise in the long run giving the convenience to buy and sell at any time.
Gold’s performance in volatile markets – Not just valuable but indispensable
Optimism of the global growth momentum has led to heightened uncertainty and decline in sentiments driven by a wave of US-driven tariffs disrupting the global trade flows. Under such volatile and uncharted conditions, gold’s weight as a strategic portfolio asset has grown stronger.
Gold complements other asset classes and offers stability, safeguarding wealth during such economic uncertainty. It has a proven track record of delivering positive returns over the long term and a reliable hedge against inflation, safeguarding investors during periods of rising prices.
Gold is an effective diversifier and has a dual behaviour with negative correlation to equities and other risk assets during market sell-offs, thereby softening portfolio losses and a positive correlation when markets are rising. Gold is also more liquid than many major global financial assets.
Gold Year 2025 Q2 Demand – 1249 tons (3 per cent up YOY). Value terms $132 billion (45 per cent up YOY)
Investments in ETF saw a positive growth in Q2 2025 on a YOY basis, and jewellery demand a decline.
Gold ETF gained prominence with the modern investor’s approach from the physical possession of gold to dematerialised forms. The steady inflow is attributable to seeking safe-haven assets amid the equity market downturn and heightened geopolitical tensions. Uncertainty over global trade policy and rising inflationary pressure added to these.
Gold ETF globally had an AUM of $383 billion with 3616 tonne of gold holdings as of June 30, 2025. India’s gold ETFs (a total 20 ETFs) have demonstrated resilience, the number of accounts increasing 41 per cent YOY from 54.10 lakhs to 76.54 lakhs in June 2025. A four-year increase being 317 per cent. Asset Under Management (AUM) increased 88 per cent YOY from ₹34,356 crore to ₹64,777 crore in June 2025. Over a four-year period, the increase has been 299 per cent.
(The author is Head of Commodities & CRM at Ventura)
Published on August 10, 2025
