New Delhi, November 13: Around 75 per cent of investors in India trust gold more than currencies, compared to 69 per cent in China, World Gold Council’s (WGC) consumer reach report stated.
The WGC launched its new consumer research report highlighting opportunities for gold for those working in both retail investment and jewellery markets. The research, with an 18,000-sample, looks at a range of markets including China, India, North America, Germany and Russia, and highlights unique insights into attitudes towards and perceptions of gold; how and why people buy gold, and also their reasons for not buying.
The new piece of research reveals gold is a mainstream choice - the third most consistently bought investment, with 46 per cent of global retail investors choosing gold products, which is just behind saving accounts (78 per cent) and life insurance (54 per cent). Looking at jewellery, the survey shows that 56 per cent of consumers have bought fine gold jewellery, compared to 34 per cent who have bought platinum jewellery.
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More than two-thirds (67 per cent) of all retail investors believe that gold is a good safeguard against both inflation and currency fluctuations, and 61 per cent trust gold more than fiat currencies.
The report also stated while people have confidence in gold, there is some mistrust among those that have never bought gold in the past, but are open to the idea of buying it in the future, with 48 per cent and 28 per cent of all potential investment and jewellery consumers respectively citing lack of trust as a significant barrier. That could be mistrust around fake or counterfeit bars and coins, product purity, or the trustworthiness of some retailers.
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“The retail gold market is healthy, with gold being considered a mainstream choice. But what really excites me is the untapped part of the market: those people who have never bought gold but are warm to the idea of doing so in the future,” said David Tait, Chief Executive Officer at the World Gold Council.
“Two issues need to be addressed to engage with these potential gold buyers: trust and awareness. This market can flourish if we can build trust across the broad spectrum of gold products being sold and raise awareness around the positive role gold can play in protecting people’s wealth,” he added.
The report said millennials’ attitudes towards gold are not so different from those of older generations. But there are perceptual misgivings among the younger Gen Z audience, which are particularly pronounced in China’s jewellery market. For example, 40 per cent of 18-24 years fashion buyers in China agree that gold can bring good luck compared to 88 per cent for those aged between 55-65 years.
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