29 pc retail investors in India who had never bought gold now considering it: WGC

Around 29 per cent of retail investors who have never bought gold in the past are open to the idea of buying the precious metal in the future following several government-led financial inclusion programmes, surge of fintech and increased knowledge, World Gold Council (WGC) said.

According to WGC's 'India Retail Investor Insights' report, 52 per cent investors already owned some form of the precious metal, with and 48 per cent having invested in the previous 12 months.

Gold jewellery and gold coins were two of the top five investments held by Indian investors across the board, a position that has been a permanent fixture for some years, it added.

India's gold market is one of the largest and most well-established in the world, augmented by the country's traditional affinity with gold.

India's retail investment landscape is evolving, underpinned by government-led financial inclusion programmes, the surge of fintech and increasing investor knowledge, WGC Managing Director, India, Somasundaram PR said.

This clearly affects the gold industry, Somasundaram said, adding that businesses are constantly striving to leverage technology to make gold more accessible to retail investors.

A key finding from the survey is the clear rural and urban distinction.

Gold currently has a deeper penetration among urban investors as 76 per cent of this group have invested in gold in the past while 21 per cent are open to buying in the future, having never previously invested.

On the contrary, 37 per cent of rural investors would consider buying gold in the future despite never having done so before, it said.

There are shared attributes between rural and urban investors, key among which is a desire for simplicity and reassurance from their investments, it added.

Also, the survey found that gold falls short in meeting the needs of investors on some occasions and there are ways in which the industry could raise the profile of the yellow metal like emphasising its role as a low-risk wealth protection vehicle.

It also revealed that trust and education are key barriers for those yet to invest in gold.

There is a significant pool of investors who have never previously bought gold but would consider doing so in the future and the primary hurdles in reaching this audience are a lack of trust in gold, it said.

Overall, around 29 per cent of retail investors who have never bought gold in the past but are now open to the idea of buying the yellow metal in the future.

Around 48 per cent of global considerers were deterred from buying gold due to a lack of trust, while in India the data showed it to be a far bigger issue here than elsewhere with 61 per cent identifying issues around trust as a barrier to buying gold, it said.

Technology can play a key role in opening up new avenues for gold investment; easy online accessibility is a must in this era of increasing global digitisation, it added.