YOUNG, SMART AND INVESTING IN GOLD

Once symbolic of tradition, gold is now the crown jewel of millennial and Gen Z investment portfolios in the UAE. Krita Coelho explores why younger Indian expats are swapping sentiment for smart money moves

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Once reserved for trousseaus and temple offerings, gold is getting a slick, modern makeover in the hands of young Indian expats in the UAE. No longer just their grandmother's prized possession, the yellow metal is now the crown jewel of millennial and Gen Z portfolios — strategic, shrewd, and unapologetically glittery.

"Gold holds considerable cultural significance within Indian communities," says Vijay Valecha, Chief Investment Officer at Century Financial. “But its relevance has extended beyond tradition. Young investors are increasingly viewing it as a lucrative financial instrument and an important portfolio diversifier.”

The numbers back up the sentiment. In 2022, even as aggressive interest rate hikes sent the S&P 500 tumbling by 19 per cent, gold held steady, closing the year with a modest 0.1 per cent gain. By 2023, it climbed 13 per cent. And in 2024? A golden rally, 40 record highs and a near 27 per cent surge. “This year, gold has already surged more than 20 per cent year-to-date,” Valecha adds. “It recently touched a record high of over $3,296, and Wall Street forecasts indicate more upside.”

WHAT'S FUELLING THE RUSH?

Global uncertainty, for starters. From inflation spikes and currency instability to tech layoffs and geopolitical tensions, the market feels like quicksand. Gold, by contrast, offers solid ground. “With global uncertainty and currency volatility, gold offers stability that cash and some equities don't,” says Satish Sanpal, Chairman of ANAX Holding.

Then there's accessibility. Gold isn't tucked away in lockers anymore. Thanks to trading apps and digital platforms, young investors can buy, sell, and store fractional units of gold with a few taps. “Millennials and Gen Z are more financially literate and digitally inclined than any previous generation,” notes Valecha. “And that’s driving this shift.”