From heirloom to collateral: How Gen Z is monetising grandma’s gold

Gold in India isn’t just an asset—it’s emotion, tradition, and security woven into one. The average Indian household’s relationship with gold is as old as time; it has been a trusted store of value, a symbol of prosperity, and a fallback option in times of distress.

Cumulatively, Indian households own a staggering 25,000 tonnes of gold, according to industry estimates. For context, that’s 3x the gold reserves owned by the US Fed (~8,000 tonnes). Almost every family in India has some amount of gold even if they don't have a lot of money.

But the younger generation’s relationship with the yellow metal is now changing—gold is no longer just a family heirloom or a social currency for weddings and rituals. Gen Z isn’t keen on wearing grandma’s gold, they are rather willing to leverage it. Today, family-owned gold is powering higher education, funding medical emergencies, financing global travel, fuelling entrepreneurial ambitions, and even building credit scores for the Indian youth.

Those under the age of 35 are increasingly liquidating their family-owned gold jewellery to avail quick, secured loans, causing a boom in what was once a niche segment for the lending industry. A PwC analysis indicates that since FY21, the highest number of active gold loans exists with consumers in the age group of 31-40 years, which made up ~44% of the total active loans in 2024.

“Also, a significant upward trend in active loans is observed in the 21–30 years age group, which represented a 2x increase in the number of active loans when compared with FY21,” PwC stated.

Not only have a plethora of new-age gold loan companies and fintechs sprung up, with each promising more convenience than the other, even traditional lenders are upping the ante in this category. The allure comes from the fact that gold is a secured lending product, where they’re loaning money against a physical asset.