Forget locking gold away in bank vaults; the rich have found a new way to make their bullion work overtime. Gold prices are smashing records worldwide, and wealthy investors are no longer satisfied with waiting for prices to rise.
The hottest trend now is gold leasing, where owners "rent out" their idle gold to jewellers and refiners and collect interest like a monthly paycheck.
Industry experts say the game has completely changed.
“People are no longer just buying gold and waiting for it to hit $5,000,” Keith Weiner of Monetary Metals told CNBC, as investors rush to turn their gold into a money-making machine.
Even in India, demand has exploded. Lease rates that used to hover around 2–3% have suddenly shot up to 6–7%, powered by the festive season, wedding rush, and a shortage of gold supply.
Digital gold platforms have made things even easier, turning everyday customers into gold lenders.
The numbers tell the real story; one leasing firm saw its gold transactions jump from a modest 2 million to a staggering 40 million this year. HNIs are lining up to join the party.
“We’re getting calls from people saying they have ₹1–2 crore worth of gold bars and want to lease them,” said SafeGold founder Gaurav Mathur, calling it a massive shift in investor behaviour.
The mechanism is simple but powerful. Investors hand over their gold to a leasing platform, which then supplies it to jewellers or manufacturers who need metal to make jewellery and products.
Instead of taking risky loans or worrying about fluctuating gold prices, these businesses simply borrow gold, sell their finished goods, and return the same amount of gold later; plus extra grams as interest.
Investors enjoy 2–7% returns paid directly in gold, and at the end of the term, they get back more gold than they originally handed over.
But this glittering trend comes with shadows. The biggest fear is default; if a jeweller goes bankrupt, the investor’s gold could vanish.
Rising gold prices during the lease period could also mean the lender misses out on big profits from selling. Liquidity is another headache, as leased gold cannot be recalled instantly.
And operational risks; like loss, theft or mishandling; always lurk in the background.
Some platforms claim to protect investors through strict due diligence and bank guarantees, but trust remains a major factor.
There’s also a reality check for small investors. Gold leasing is not designed for people with a few grams lying at home.
Most programs demand large minimum quantities, often hundreds of grams, making it a playground largely reserved for institutional players and the ultra-wealthy.
For everyone else, experts say options like Sovereign Gold Bonds, digital gold, or ETFs make far more sense.
Still, one thing is clear: gold is no longer just something you buy for security. In 2025, it has become a weapon for passive income; a shining asset that can earn like a fixed deposit.
And with billionaires like Eric Sprott and Seth Klarman rooting for gold as a shield against global instability, the leasing frenzy is only set to grow.
