WGC's Survey Provides Crucial Insights on India's Gold Investment Market

The research study confirms that there is a high penetration of gold among Indian retail investors: two thirds of those surveyed had bought gold in the past. But then 29% of retail investors have never bought gold in the past but are open to the idea of buying gold in the future. So, there is a significant opportunity for the industry to seize upon and grow the market.

To help the gold industry understand the market better, World Gold Council (WGC) conducted an in-depth survey of more than 2,000 retail investors. We at AOJ would like to share the major takeaways of this study with our readers.

Gold is a Prominent Feature in India’s Investment Landscape

India has one of the largest and most well-established gold markets in the world, underpinned by the nation’s rich religious and cultural association with gold. There is a huge set of data quantifying Indian demand for gold. And the research confirms that gold features heavily in investors’ current portfolios – it is among the most popular products they own.

52% of investors already own some form of gold, with 48% having invested in the 12 months preceding the survey. Gold jewellery and gold coins remain two of the top five investments held by Indian investors across the board – a position they have held steadily for some years.

But there is, nonetheless, a sizable opportunity to increase penetration of gold investment among the Indian retail investor base.

There are many questions such as - what Indian investors really feel about gold. How do they invest in it? What are their motives for doing so? Is gold meeting their primary investment objectives? If not, what can the industry do to help position gold more effectively among various audiences? The research study brings out various key points.

The Current Scenario

There is a clear rural/urban distinction