Rich Indians own more gold than global average; set to lap up more in 2019

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Updated: May 8, 2019 4:03:06 PM

Amid heightened volatility in the stock market, the ultra-rich are betting big on Gold, with 14% UHNI's expected to increase their allocation to the yellow metal in 2019, according to a report.

Gold prices, Gold firms, Sino-US trade, Spot gold, US gold futures, U.S. gold futurest, Akshaya Tritiya Indian UHNWIs already have a higher allocation towards Gold in their investment portfolio as compared to the

Amid heightened volatility in the stock market, the ultra-rich are betting big on Gold, with 14% UHNI’s expected to increase their allocation to the yellow metal in 2019, according to a report. According to  a recent Attitude Survey conducted by Knight Frank, nearly 14% of Indian ultra-high networth individuals (UHNWIs) are likely to increase their investment to Gold asset class in 2019, 3% higher compared to the previous year 2018. Notably, Indian UHNWIs already have a higher allocation towards Gold in their investment portfolio  at 4%, as compared to the  global average of 2%, and Asia average of 3%.

Shishir Baijal, Chairman & Managing Director, Knight Frank India noted that gold has always been considered a safe investment and in countries with cultural affinity towards the yellow metal, a renewal of interest is seen. “Like all investments gold also witnesses volatility but has remained largely stable with a upward bias for long periods of time,” he said. 

Also read: Reliance Industries, Titan, Axis Bank shares among top Nifty performers since January; check biggest laggards

While India is one of the largest consumers of gold, it has usually been in the form of ornaments for retail purpose. However, in recent times, the trend seems to be changing now, as investors purchase gold and bonds for investment purpose, noted the report. This trend is expected to grow further. “With the optimistic outlook towards investments in the asset class, on the auspicious occasion of Akshaya Tritiya, we expect a number ultra-rich in India to purchase gold both for investment and consumption purpose,” Baijal added. 

Interestingly, while 14% of the ultra-rich are looking to increase allocation to gold, globally, 20% of survey respondents said that they are going to increase allocation to Gold in 2019, a higher percentage when compared with 11% citing to have increased allocation in 2018. The positive attitude of UHNWIs towards investments in the asset class has also gone up in Asia with 25% expecting an increase when compared to 19% who cited an increase in allocation in 2019.

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