According to the latest reports, India's formal pension and social security coverage is severely inadequate. This has led to an interesting phenomenon: many ordinary households consider physical gold—especially heirloom jewelry—as the most reliable "pension" to save for the future.

Many Indian families hold large amounts of gold over the long term. When faced with a real emergency—retirement, medical expenses, or sudden lack of cash—they first think of selling their jewelry or pawning it for cash. This practice is particularly common among low- and middle-income groups.

Why is this the case? Simply put, the formal pension and social security systems are unreliable. In contrast, gold is tangible and recognizable across generations, and in a pinch, it can be exchanged for money. This asset allocation logic actually reflects a common dilemma faced by many in emerging markets: the lack of effective financial tools means they can only rely on the most traditional, tangible assets to hedge risks.

This also gives us an insight—when formal financial protections are inadequate, people naturally seek alternatives. Whether it’s gold, real estate, or other assets, essentially, they are using their own methods to fill the gaps in the system.