The millennial’s guide to investing in gold
Get glitter that grows
Growing up in an Indian home, Dhanteras shopping wasn’t up for debate. As diyas flickered in every corner and laddoos waited on the table, my parents would march determinedly to the jeweller, year after year, without fail, and return with a tiny gold coin, a chain, or something bigger if the bonus had come in early. “It’s auspicious,” they’d say, while I wondered why adults got so excited about something that would end up in the locker.
Cut to now. I’m the adult. The family WhatsApp group is buzzing with Dhanteras selfies, and my mom casually drops the question, “Beta, are you buying gold this year?” I glance at my credit card bill, rent reminder, and the price of onions, and think, not unless I can pay for it in emotional stability.
But here’s the thing, even in 2025, gold still does what it’s always done best: protect your money when everything else feels uncertain. According to a 2024 survey by Moneyview, nearly 70% of its respondents said gold’s reputation as a safe asset positively influences their savings habits, reinforcing its long-standing role as a cornerstone of wealth preservation.
Why invest in gold?
The demand is only growing: Gold continues to glitter, with prices nearing an all-time high of ₹1.3 lakh per 10 gram in India (as of October 15, 2025). India’s gold exchange-traded funds (ETFs) are also seeing record inflows: ₹8,363 crore in September 2025 alone, the highest ever recorded. Digital gold platforms are buzzing too.
It balances your financial plate as a built-in safety net: Gold doesn’t move in sync with stocks or real estate. When markets dip or inflation rises, gold usually holds steady. So, adding a bit of it makes your investments less moody and more balanced. “Gold is a hedge, not a wealth multiplier. For millennials navigating uncertain markets, a balanced portfolio, combining equities, fixed income, and limited gold exposure, is safer,” says Ritesh Mehta, a Mumbai-based CA.
There are so many options to choose from. Gold today isn’t one-size-fits-all. Whether you’re saving up for a big purchase or just want to hedge your risks, there’s a version of gold for every kind of investor. You just have to invest in it differently than your parents did. While their generation swore by jewellery, the same survey found that 65% of millennials prefer digital gold over physical gold, drawn by the convenience and accessibility of online platforms.
6 gold investment options to consider
Sovereign Gold Bonds (SGBs)
What: Government-issued bonds linked to gold prices.
Why: You earn 2.5% annual interest on top of gold’s price rise, and there’s no capital gains tax if you hold it till maturity.
How to buy: Through your bank, post office, or online when the RBI issues them.
How much to invest: 5-10% of your portfolio is plenty if you’re starting out.
“SGBs give you the dual benefit of returns and safety. But remember that the interest you earn is taxable as per your income slab,” says Mehta.
Gold ETFs
What: Funds that track the price of gold, traded like shares on the stock market.
Why: No storage worries, no making charges, just pure gold value.
How to buy: Using your demat or investment app.
How much to invest: Start small. ₹500 or ₹1,000 a month works fine.
“Digital gold and ETFs are convenient, but come with market fluctuations, so plan your exposure instead of buying impulsively during festive peaks,” says Namrata Shah, a Mumbai-based broker.
Gold Mutual Funds
What: Mutual funds that invest in gold ETFs.
Why: Easy to start SIPs, professionally managed, and regulated.
How to buy: Any mutual fund platform or asset management company website.
How much to invest: Start with a ₹1,000-₹2,000 SIP.
Aarti Menon, 39, a Bengaluru-based content strategist, started a ₹1,500 SIP in a gold fund in 2022. Over time, she’s seen steady, inflation-beating returns, nothing flashy, but consistent enough to keep her SIP running. “It’s boring, but I like boring money. It’s just quietly doing its job while my savings account interest cries in the corner,” she says.
Digital Gold
What: Online platforms like Paytm, PhonePe, and Google Pay let you buy fractional gold—even ₹100 worth.
Why: Perfect for micro-savers; you can convert it into coins or jewellery later.
How to buy: You can instantly buy it in-app instant without paperwork.
How much to invest: Good for small, regular (festive or monthly) savings.
“Digital gold is not regulated by SEBI or RBI yet. Your gold is stored with private vaulting partners. Stick to verified, audited providers, which offer insured, 24-karat (99.9% purity) gold storage,” says Shah.
Gold Savings Schemes (Jeweller-run)
What: Monthly deposit plans that help you buy jewellery later (e.g. Tanishq Golden Harvest, Malabar Gold).
Why: Great if you know you’ll buy jewellery anyway; helps you plan purchases and earn small bonuses.
How to buy: Sign up directly with your preferred jeweller or through their official website or app. You pay a fixed monthly amount (usually for 10-12 months) and can redeem the total (plus bonus, if offered) for jewellery at the end of the term.
How much to invest: Depends on your goal; ideal if you’re saving up for wedding jewellery or festive purchases.
When Delhi-based architect Neha Bansal, 32, joined a gold savings plan, she treated it as a disciplined way to save for her wedding jewellery. “It felt manageable, I didn’t even notice the ₹2,000 auto-debit every month,” she says. A year later, she used the accumulated amount plus a small bonus to buy a necklace. Just keep in mind, though, that this is a savings plan, not an investment. Making charges and design costs still apply,” she adds.
Physical Gold (Coins, bars, jewellery)
What: The OG way—tangible, emotional, and traditional.
Why: Good for gifting or heirlooms; universally accepted.
How to buy: Always check the Bureau of Indian Standards (BIS) hallmark and invoice.
How much to invest: Keep it minimal; 2-5% of your net worth.
“Many people forget that selling gold jewellery attracts capital gains tax. If you sell within three years, it’s treated as a short-term gain and taxed as per your income slab. But if you sell after three years, it becomes a long-term capital gain, taxed at 20% with indexation benefits. So always maintain a purchase record,” says Mehta.
The takeaway
As women in our thirties and forties, we’re entering a life stage marked by both career growth and potential career breaks, which is exactly why precious metals deserve a place in our portfolios.
Lavanya Mohan, CA-turned-writer, says, “But this should be part of an overall investing strategy, not a spur-of-the-moment buy. Jewellery isn’t an investment. It’s an accessory. If you’re serious about returns, look instead at digital gold, Sovereign Gold Bonds, ETFs or gold and silver mutual funds. These are far more liquid (easier to sell) and transparently priced.” Her biggest tip? Keep your allocation disciplined—not more than 10% of your overall portfolio—and avoid buying just because gold or silver is having a moment. “That’s FOMO investing, and we’ve seen how that ends, whether with crypto or NFTs,” she adds.
Interestingly, even when it comes to jewellery, while our parents bought gold for value, millennials are buying gold that feels valuable, modern, minimal and wearable. “Today’s young women are looking for diamond jewellery set in gold that truly reflects their individuality. For them, the purchase is not driven solely by investment value but something that reflects their personal style and also symbolises modern luxury. At the same time, their purchases are often inspired by their parents and the traditions they’ve grown up with,” says Richa Singh, managing director, India and Middle East, Natural Diamond Council.
Tradition says: buy gold. Reality says: don’t do it blindly.
The good news is that, like me, you don’t have to pick between them. Whether it’s a tiny bit of digital gold or a shiny SGB, there’s a way to keep the ritual alive—minus the stress. Think of it as giving your parents’ investment plan a millennial reboot: smart, simple, and just a little more stylish.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on your individual financial situation and goals. Please consult a certified financial advisor or tax professional before making any investment in gold, digital gold, ETFs, mutual funds, or other financial instruments.
