Indian UHNWIs second only to Austria in gold investments: Report

Gold allocation by ultra-wealthy Indians stood higher than the average allocation of UHNWIs both globally and in the APAC region.

As much as 6 per cent of the total investable wealth of Indian ultra-high-net-worth individuals (UHNWIs) was allocated towards gold in 2022, the Attitudes Survey conducted by Knight Frank said on April 21.

India and the Chinese Mainland were positioned second on the list with a 6 percent wealth allocation in Gold by the UHNWIs of the respective countries in 2022. Austria ranked first on the list with 8 percent allocation.

Gold allocation by ultra-wealthy Indians stood higher than the average allocation of UHNWIs both globally and in the APAC region.

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

One of the primary reasons for the rise in the allocation to gold by UHNWIs is the significant returns that gold has provided over the years. The yellow metal has delivered over 69 percent returns in the past five years (from FY 2019 to FY 2023). The pandemic, resultant low interest rate, and easy liquidity strategy adopted by global central banks gave a massive push to prices, it said.

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

“This was captured aptly in the Attitudes Survey in our The Wealth Report 2023, that Indian UHNWIs have allocated a higher proportion of wealth to gold (6%) versus the global allocation (3%) in 2022.”