According to the outlook survey conducted by Knight Frank, 6% of the total investable assets of Indian ultra-high net-worth individuals (UHNWIs) were allocated to gold in 2022.

India and the Chinese mainland were ranked second on the list with 6% allocation to gold by the UHNWIs of the respective countries in 2022.

Austria topped the list with 8% allocation. The allocation to gold by Indian ultra-wealthy individuals was higher than the average allocation to UHNWIs from both the global and APAC regions.

According to a Knight Frank report, the average UHNWI wealth allocation to gold in 2022 was 3% globally and 4% in the Asia Pacific region.

Interestingly, the allocation to gold by Indian UHNIs has increased from 4% in 2018 to 6% in 2022.

Why do UHNWIs invest in gold?

One of the primary reasons for the increase in gold allocation by UHNWIs is the significant returns that gold has provided over the years. The yellow metal has given over 69% returns in the last 5 years (FY 2019 to FY 2023). Tea

The pandemic, resulting low interest rates and easy liquidity strategy adopted by global central banks gave a huge push to the prices.

Shishir Baijal, chairman and managing director, Knight Frank India, said, “In view of the uncertainties in the global economic scenario, consumers have resorted to incremental capital allocation to assets that provide stability and act as a hedge against inflation.” It was aptly captured in our The Wealth Report 2023 Attitude Survey, that Indian UHNWIs allocate a higher proportion of wealth in gold (6%) in 2022 than the global allocation (3%).

Source: Bharat Times 

BDST: 1814 HRS, APR 22, 2023
MN/SMS