Indian households typically view gold as a wealth store that remains untouched for years in bank lockers and safes. According to reports from Mint, while the metal may appreciate in value over time, it does not generate any direct return for the owner. Gold jewellery is often passed across generations and rarely sold, meaning the value remains largely locked unless it is pledged or sold. Gold leasing offers an alternative by allowing owners to lend their gold for a specified period in exchange for a return while retaining ownership. As per CNBC TV18, Gaurav Mathur, Founder and CEO of SafeGold, describes the model as enabling consumers to "put their gold holdings to productive use rather than leaving them idle," with consumers earning an additional return in gold while continuing to own the principal quantity.
As of June 12, 2026, gold's spot price stands at $4,186.51 per ounce according to CNBC's Gold/US Dollar Spot Price, representing a significant increase from Thursday's trading price of $4,081.34 per ounce. This upward movement reflects gold's role as a safe-haven asset that investors gravitate toward during economic and political turmoil. However, recent market analysis reveals that gold encountered a "perfect storm" after a strong two-year rally, with marginal buyers being replaced by marginal sellers due to shifting US interest rate expectations and central banks pausing their purchases. Despite gold's recent 6% gain over the year to May end, its recent behavior has been uncomfortable for investors who expected immediate portfolio protection.
The gold leasing process generally follows several key steps as outlined by CNBC TV18. Consumers purchase digital gold or deposit vaulted gold, and a platform facilitates the leasing to verified jewelers who use the metal as part of their working inventory. Consumers receive a lease return, usually in gold units, and at the end of the lease period, the underlying quantity of gold remains with the owner. Renisha Chainani, Head of Research at Augmont, describes gold leasing as converting idle gold into a yield-generating asset, with investors earning returns typically credited in the form of additional gold weight depending on the platform and tenure. The arrangement creates a link between households that own gold and jewelers that require it for business operations.
The concept has gained significant interest because of India's substantial stock of privately held gold and continued reliance on imports. According to CNBC TV18, Mathur says mobilising domestic gold through leasing could help bring existing gold holdings back into circulation, thereby reducing the need for fresh imports over time. Chainani notes that if even a small portion of India's privately held gold is mobilised annually, it could substitute a meaningful amount of imported gold and potentially ease pressure on the country's current account deficit. Industry participants believe gold leasing can contribute to reducing import dependence, though Kaushlendra Sinha, CEO of IAGES, notes that Indians have strong emotional and cultural attachment to gold jewellery, making monetisation a long-term process.
Retail gold leasing is currently available through a limited number of digital gold platforms, with companies such as SafeGold, myGold, and Gullak offering programmes that allow users to lease their gold holdings to jewelers and earn additional returns in gold. As reported by CNBC TV18, these platforms facilitate the leasing process and match consumers with verified jewelers. The arrangement provides jewelers with access to domestically mobilised gold, reducing dependence on imported bullion, and leasing arrangements can provide access to gold at lower effective costs than traditional financing routes, potentially improving margins. Industry participants note that retail gold leasing remains an emerging segment and does not yet have a dedicated regulatory framework comparable to other financial products.
Despite its potential, several challenges remain before gold leasing can scale meaningfully. According to CNBC TV18, in case of default, the underlying structure means investors depend on platform-level safeguards rather than insurance protection. Mathur clarifies that protection is based on market-linked collateral, ranging from bank guarantees for smaller companies to post-dated cheques from publicly listed or large retail footprint companies. He notes that banks won't insure gold in such arrangements, as customers would be giving physical possession of the gold and banks would have no involvement. The physical gold deployed into the leasing system may not return in the same form or custody chain during the tenure, as it is typically used as inventory by jewelers. Experts emphasize that building consumer trust, overcoming emotional attachment to physical gold holdings, and establishing clear regulatory frameworks are essential for wider adoption.
