Akshaya Tritiya: Ultra-high net worth individuals put 6% of investable wealth in gold last year: Knight Frank

Akshaya Tritiya: Ultra-high net worth individuals (UHNWIs) allocated 6 per cent of their total investable wealth in gold last year, according to property consultant Knight Frank India.

In 2022, the average UHNWI wealth allocation in gold was 3 per cent globally and 4 per cent in the Asia Pacific region.

"According to the Attitudes Survey conducted by Knight Frank, 6 per cent of the total investable wealth of Indian ultra-high net worth individuals was allocated towards gold in 2022," the statement said.

India and Chinese Mainland were positioned second on the list with a 6 per cent wealth allocation in gold by the UHNWIs of both the countries in 2022.

Austria ranked first on the list with 8 per cent allocation.

There has been an increase in the allocation to gold by the Indian UHNWIs from 4 per cent in 2018 to 6 per cent in 2022, Knight Frank said, while attributing the rise to significant returns that the yellow metal has provided over the years.

Gold has delivered a stellar returns of over 69 per cent in the past 5 years (From FY2019 to FY2023). The pandemic has resulted in a low interest rate, and easy liquidity strategy adopted by the global central banks gave a massive push to the prices, the consultant said.

"In the wake of uncertainties in the global economic landscape, consumers resorted to allocate incremental capital to assets that offer stability and serve as a hedge against inflation," Shishir Baijal, Chairman & Managing Director of Knight Frank India, said.

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