The announcement of the Union Budget 2026 is just 10 days away, and expectations are running high across sectors, with the precious metals industry seeking some reforms amid record-high gold and silver prices. Gold rates in India are touching fresh all-time highs every other day and investor interest at peak levels, industry leaders believe the upcoming Budget can provide a major opportunity to transform how Indians invest in gold.
Gold prices surged sharply this week, after back-to-back jumps in the gold rate in India, pushing both gold and silver to lifetime highs. While the rally has rewarded long-term investors, it has also pointed at a structural challenge: a large portion of household gold remains locked in physical form, which offers limited contribution to the broader economy.
The Need For Awareness on Digital Gold
Many retail investors are still unfamiliar with digital gold, despite its growing relevance. A Gold Exchange-Traded Fund, or Gold ETF, allows investors to gain exposure to gold prices without owning physical gold. These ETFs track domestic gold bullion prices and are traded on stock exchanges like shares, with each unit typically representing one gram of high-purity gold held by the fund. A similar case for silver ETFs as well.
So the need of the hour is that India must bring household gold into the formal financial system to meet long-term economic goals.
“If we look at the goal of Viksit Bharat 2047 from a logical and economic standpoint, it becomes clear that India must unlock the vast amount of gold lying idle in households and integrate it into the digital economy. From this budget onwards, the expectation is that the government should actively promote awareness and adoption of digital gold,” Mahendra Luniya, Chairman of Vighnharata Gold Ltd, said.
He added that converting physical gold stored in homes into digital assets that can be productively utilised could significantly accelerate economic growth.
Gold at Rs. 1.5 Lakh, Jewellery Demand Slows
With gold prices hovering close to Rs. 1.5 lakh per tola, traditional jewellery demand has slowed massively. Consumers are now choosing to opt for smaller quantities, such as one gram of gold, or buying gold purely as an investment and storing it at home.
“This effectively locks a massive amount of liquidity inside private vaults instead of allowing it to circulate within the Indian economy. Digital gold offers a practical solution to unlock this value.” According to industry estimates, shifting even a small portion of household gold savings into digital instruments could provide a strong boost to capital availability and economic activity.” Luniya said
Call for Revival of Sovereign Gold Bonds
Another key expectation from Budget 2026 is the revival of the Sovereign Gold Bond (SGB) scheme, which was earlier discontinued.
SGBs are one of the most effective policy measures introduced in the gold space.
“The impact of Sovereign Gold Bonds was clearly visible; public awareness increased, and behavioural change began to take place. Unlike many schemes that incur fiscal losses, SGBs allowed the government to access capital without financial strain while productively utilising household gold savings. The government should reconsider its decision, review the long-term benefits of the scheme, and reintroduce SGBs in the upcoming budget. Luniya said.
The journey from physical gold to digital gold is not going to be easy, as many people still prefer buying gold as jewellery or coins. However, if the awareness is increased via any major announcement during Budget 2026, it can show how India invests and monetises its most trusted asset, i.e., gold.
