Over 75 per cent of investors under the age of 35 prefer digital gold platforms for their gold investments. What is driving this change? Read to find out.
In a shift that reflects the evolving habit of Indian consumer's investment habit, a new survey reveals that around 65 per cent of millennials now favour buying digital gold over traditional ones. What could be driving this preference other than the generational shift of living in a digital-first economy?
As young investors increasingly tap into investment avenues that are both new and technologically advanced, they are largely driven by the convenience and flexibility that digital offers. This makes it a preferred choice, offering a seamless and more flexible alternative to investing in traditional/physical gold.
According to a recent survey by Moneyview, a financial services platform, nearly 65 per cent of millennials surveyed expressed a preference for digital gold due to its ease of access and convenience. The survey, which polled 3,000 respondents, highlights the enduring appeal of gold as an asset, appreciating its role in long-term wealth-building and its reputation as a safe investment. Respondents aged between 25-40 years reported using gold as a regular part of their financial strategies while thinking of this asset as a means to secure their future financial goals such as retirement.
The report shows a growing shift among younger investors, particularly those under the age of 35, towards digital gold platforms for their gold investments. Over 75 per cent of this demographic segment prefers digital gold, because of the following three reasons:
- Ease of Liquidity
- Ease of Access
- Option to begin with Smaller investments
Digital gold allows investors to buy gold in fractional amounts, even with a starting investment as low as Rs 10, making it a viable option for those who might find the upfront costs of purchasing physical gold restrictive.
Such a trend is especially visible among the middle-income groups, the survey finds. Those with minimum investment resources value the opportunity to invest in smaller quantities without the need for physical storage or security arrangements.
Urban consumers, typically known for their higher digital literacy and easier access to internet facilities are leading this transition to digital gold. However, rural consumers, traditionally, inclined toward physical gold are also beginning to recognise the benefits of digital gold through increasing mobile app usage and access to fintech platforms.
Gold has traditionally been called a ‘safe-haven’ asset which endures through most economic downturns. The report shows that digital gold is gaining traction due to several factors that distinguish it from traditional gold investments which centered around buying gold jewelry or bricks.
Assured purity, insured storage and the ability to covert holdings into cash or physical gold without significant transaction costs are leading up to this changing scenario. Unlike physical gold, digital gold relieves the buyers of worrying about authenticity or storage risks as it is backed by 24K gold kept in insured vaults.
For many investors, the peace of mind that comes with knowing their investment is secure and can be liquidated swiftly has become the major decisive factor.
Around 70 per cent of the survey respondents say that their perception of gold as a reliable store of value significantly shapes their savings behaviour. Consecutively, as digital gold solutions continue to transform how investments are made, investment in this asset is emerging as a practical choice for many looking to diversify their investment portfolio. This helps them do away with the logistical complexities of managing physical assets.
Physical gold still retains its appeal among the high-income groups who purchase larger quantities, the survey shows. Therefore, digital gold’s appeal cuts across a wide spectrum of income levels, particularly middle-income groups as mentioned above. These groups enjoy participation in gold buying without the need to visit a jeweller or manage physical assets on their own.
Says Sushma Abburi, Chief Business Officer at Moneyview, “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.”
Such democratisation of gold investments is playing a pivotal role in reshaping this market.