Indian Economy News

Ultra-rich to increase investment in gold asset class in 2019

  • PTI
  • May 3, 2019

Mumbai: With positive sentiments in the market, nearly 14 percent Ultra-high net worth individuals (UHNWIs) in India are planning to increase their investment to gold asset class in 2019, the survey said.

This is 3 percent higher compared to the year 2018, according to the 'Attitude Survey' conducted by Knight Frank.

Indian UHNWIs have a higher allocation towards gold in their investment portfolio (4 percent) than the global average (2 percent) and Asia average (3 percent), it added.

Knight Frank conducted the survey to map the investment sentiment of UHNWIs towards gold as an asset class in 2019.

The survey is based on responses from 600 private bankers and wealth advisors managing over USD 3 trillion of wealth for ultra clients across the globe, including in India.

Globally, 20 percent of respondents said they are going to increase allocation to gold in 2019, compared with 11 percent citing to have increased allocation in 2018.

The positive attitude of UHNWIs towards investments in gold has also gone up in Asia, with 25 percent expecting an increase this year compared to 19 percent in 2018.

"Globally, bullion led by gold has always been considered a safe investment and in countries with cultural affinity towards the yellow metal, we are seeing a renewal of interest in remaining investment in this asset class. Like all investments gold also witnesses volatility but has remained largely stable with a upward bias for long periods of time," Knight Frank India chairman and managing director Shishir Baijal said.

While India is one of the largest consumers of gold, it has usually been in the form of ornaments for retail purpose, he said.

"However, in recent times, we have seen investors purchase gold and bonds and expect the trend 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," he said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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