62% Gen Z, mllennials buy gold under 5 grams, pick bullion over MFs, stocks | Personal Finance

According to a survey by Smytten PulseAI, approximately 62% of Gen Z and millennials still view gold as the safest investment option, even as younger buyers shift to smaller, more frequent purchases and increasingly make gold purchasing decisions independently rather than as part of family investments.

The national survey of 5,000 consumers aged 18-39 found that 66.7% of gold purchases are now driven by personal decision-making, reflecting a generational shift towards self-investment. At the same time, 61.9% of respondents said their last gold purchase was less than 5 grams, signaling a shift towards lighter notes and gradual accumulation.

Gold continues to be the first choice when safety matters

• Despite increasing access to modern financial products, gold remains the most reliable investment for young Indians.
• According to the survey:
• 61.9% of respondents would choose gold if they had ₹25,000 to invest today, far ahead of mutual funds (16.6%), fixed deposits (13%), stocks (6.6%) and crypto (1.9%).
• In times of economic uncertainty, 65.7% said gold seemed to be the safest option compared to bank savings, mutual funds or stocks. These findings highlight gold’s enduring role as a financial fallback for both Gen Z and millennials.
• 66.7% of respondents said that buying gold today is largely a personal, autonomous decision rather than one primarily influenced by family.
• 42.3% said they initiated the most recent gold purchase within their household themselves, while 40% cited their parents or older family members. This speaks to a clear generational divide in how decisions about gold are made.

Small purchases become the norm

• The survey reveals a clear shift from large, infrequent purchases to lighter, more regular purchases.
• 61.9% of recent purchases were less than 5 grams, with 27.5% purchasing less than 2 grams and 34.4% purchasing between 2 and 5 grams.
• 42% of households now prefer smaller, more frequent purchases over time, compared to 58% who still make one-off, occasion-related purchases.
• For many first-time buyers, access to gold is no longer limited to marriages.
• 24.3% said their first gold purchase was triggered by their first salary or personal income, while 23.9% cited an investment decision.

This reflects the generational divide in entry behavior: Gen Z is more likely to enter the industry through personal steps and smaller startup purchases, while Millennials are more likely to anchor their purchases on life events and long-term security.

Trust Always Trumps Convenience in Gold Buying

Even as digital investment platforms grow rapidly, gold purchases among younger Indians continue to be largely driven by trust and familiarity rather than convenience. The survey shows that physical retail channels remain dominant, with 38.3% of respondents preferring large branded jewelry chains, while 34.7% continue to rely on neighborhood jewelers.

In contrast, only 5.2% of respondents currently purchase gold through online platforms or apps, highlighting the slow adoption of digital channels in a category where authenticity and trustworthiness are deeply important.

Concerns about purity and authenticity remain the biggest barrier, cited by 49.4% of respondents. 21% are concerned about hidden or charged fees, while 17% are concerned about resale value, highlighting persistent information gaps in the purchasing journey.

Post-purchase regrets remain common

One of the most notable findings from the survey is the high level of hesitation after purchasing gold. Nearly 67.1% of those surveyed said they often or sometimes felt regret following a gold purchase.

The reasons vary. Around 38.9% said they regretted the price paid, while 33.5% highlighted confusion around the purchase format, such as choosing between jewelry, coins or digital gold. Another 18.8% said they did not have enough information at the time of purchase.

Together, these findings highlight a growing gap between high trust in gold as an asset and lower trust in the shopping experience, particularly among Gen Z and Millennial consumers.

Strong future purchase intention

Despite these frictions, gold demand remains resilient. The survey found that 52.7% of respondents are very likely to purchase gold in the next 12 to 24 months, while 31.4% say they are somewhat likely to make a purchase.