The World Gold Council’s newest India Retail Investor Insights report revealed that 29% of retail buyers have by no means purchased gold prior to now however are open to the concept of shopping for gold sooner or later. 52% of buyers already owned some type of gold, with 48% having invested within the 12 months previous the survey. Gold jewelry and gold cash remained two of the highest 5 investments held by Indian buyers throughout the board – a place that has been an everlasting fixture for some years.
India’s gold market is among the largest and most well-established on this planet, augmented by the nation’s conventional affinity and age-old cultural associations with gold. That is additional substantiated as gold additionally occupies an outstanding position in funding portfolios – the funding case for gold is ingrained in India, defending wealth and producing long-term returns for rural and concrete buyers alike.
The primary 5 key findings from the report are as follows:
A transparent rural/city distinction exists.
Gold presently has a deeper penetration amongst city buyers: 76% of this group have invested in gold prior to now. And 21% are open to purchasing gold sooner or later, having by no means beforehand invested. Quite the opposite, 37% of rural buyers would contemplate shopping for gold sooner or later regardless of by no means having completed so earlier than. And whereas these rural gold considerers provide a decrease worth alternative than their city counterparts, they provide important development potential.
There’s a widespread want for simplicity and reassurance.
There are shared attributes between rural and concrete buyers, key amongst which is a need for simplicity and reassurance from their investments. The gold trade is effectively poised to capitalise on this want by highlighting gold’s related attributes to unlock a portion of this latent demand.
Gold is struggling to discover a foothold at sure key funding events.
There is a selection of common demand moments, outlined by the precise set of must which buyers are responding after they make a funding selection. At present, gold falls quick in assembly the wants of buyers on a few of these events. There are methods wherein the trade may increase gold’s profile: emphasising its position as a low-risk wealth safety automobile would assist in sure moments; whereas in others, growing accessible gold merchandise packaged in an extra thrilling method would entice demand.
Belief and training are key limitations for these but to put money into gold.
There’s an important pool of buyers who’ve by no means beforehand purchased gold, however, they would contemplate doing so sooner or later. The first hurdles in reaching this viewer are a scarcity of belief in gold, a necessity for training round investing in gold, and reassurance in its danger profile. However, there’s, nonetheless, a large alternative to extend the penetration of gold funding among the many Indian retail investor bases. In complete, nearly one-third of Indian buyers who haven’t purchased gold earlier than are open to doing so sooner or later. We name this group ‘gold considerers’ and so they characterize a big pool of untapped demand
Our international shopper survey report ‘Retail gold insights 2019’ revealed {that a} lack of belief was a key problem for gold throughout six key markets: 48% of world considerers have been deterred from shopping for gold as a consequence of a scarcity of belief. The information for India reveals it to be a far larger problem right here than elsewhere: 61% of Indian considerers recognized points round belief as a barrier to purchasing gold.
The gold trade has the potential to attraction to large new viewers.
Expertise can play a key position in opening up new avenues for gold funding; simple on-line accessibility is a should on this period of accelerating international digitization.
Somasundaram PR, Managing Director, India, World Gold Council, commented: “India’s retail funding panorama is evolving, underpinned by government-led monetary inclusion packages, the surge of fintech, and rising investor data. And this clearly impacts the gold trade.
Companies are always striving to leverage expertise to make Gold extra accessible to retail buyers. To assist the gold trade higher perceive the market we performed an in-depth survey of greater than 2,000 retail buyers. Foundation for this in-depth survey, now we have been capable of uncovering broad insights, extending throughout all the buy journey, delving into demand moments, and figuring out investor typologies.
One statistic that leaps out to me and captures my creativeness is that 29% of retail buyers have by no means purchased gold prior to now however are open to the concept of shopping for gold sooner or later. We welcome deeper conversations with the trade to discover how we can assist to understand that potential.”
