Gold buying alert! Yellow metal demand may rise in India - What survey findings reveal

In India, the gold market is one of the largest and most well-established in the world because Yellow metal is considered as the safest form of investment in the country. Interestingly, you can expect the demand for gold may surge further as a World Gold Council report on Thursday said that around 29 per cent of the retail investors in India have never bought the yellow metal, but are open to the idea of buying it in future.

In a survey, it is said that around 52 per cent of investors already owned some form of gold, with 48% having invested in the 12 months preceding the survey.

Top investment:
In a report, it was said that gold jewellery and gold coins remained two of the top five investments held by Indian investors across the board - a position that has been a permanent fixture for some years.

India`s gold market:
The World Gold Council (WGC) noted that India`s gold market is one of the largest and most well-established in the world, augmented by the nation`s traditional affinity and age-old cultural associations with gold.

Long term returns:
This is further substantiated as gold also occupies a prominent role in investment portfolios, the investment case for gold is ingrained in India, protecting wealth and generating long-term returns for rural and urban investors alike, it said.

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

Rural Investment:
"On the contrary, 37 per cent of rural investors would consider buying gold in the future despite never having done so before. And while these rural gold considerers offer a lower value opportunity than their urban counterparts, they offer significant growth potential," it said.

Global digitisation:
Noting that the gold industry has the potential to appeal to a sizable new audience, the report said that 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 said.

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Gold Industry:
Somasundaram PR, Managing Director, India, World Gold Council, said that India`s retail investment landscape is evolving, underpinned by government-led financial inclusion programmes, the surge of fintech, and increasing investor knowledge. And this clearly affects the gold industry. Businesses are constantly striving to leverage technology to make gold more accessible to retail investors.

(With IANS inputs)