Wealthy Indians likely to increase investment in gold: Knight Frank

Ultra-high net worth individuals (UHNWIs) in India are looking at gold as a viable investment option in 2019, reports suggest.

According to a survey conducted by independent global consultancy company Knight Frank, 14 percent Indian UHNWIs are likely to hike their investment in the gold asset class, which is three percent higher than it was in 2018.

The renewed interest in gold is not just in India, as 20 percent of the wealthy individuals globally are planning to increase their investment in the yellow metal, compared to 11 percent in 2018.

% who chose each option	Africa	Asia	Australasia	Europe	Latin America	Middle East	North America	Russia/CIS	Global average	India average
Increase	15%	25%	21%	17%	38%	13%	16%	18%	20%	14%
Decrease	9%	5%	2%	3%	13%	4%	3%	6%	6%	6%
No change	28%	37%	43%	48%	25%	42%	59%	41%	40%	57%
Don’t Invest	48%	32%	35%	32%	25%	42%	22%	35%	34%	23%

The survey also noted that wealthy Indians have a higher allocation towards gold in their investment portfolio at 4 percent, compared to the global average and Asia's average at 2 percent and 3 percent, respectively.

%	Africa	Asia	Australasia	Europe	Latin America	Middle East	North America	Russia/CIS	Global average	India average
Gold	1%	3%	1%	2%	8%	1%	1%	1%	2%	4%

“In countries with a cultural affinity towards gold, we are seeing a renewal of interest. While India is one of the largest consumers of gold, it has usually been in the form of ornaments for retail purpose. However, we have seen investors purchase gold and bonds and expect the trend to grow further," said Shishir Baijal, Chairman and Managing Director at Knight Frank India.

The agency expects investment by Indians to boost spending on Gold particularly during the forthcoming Hindu festival, Akshaya Tritiya, on May 7.

"With the optimistic outlook towards investments in the asset class, on Akshaya Tritiya, we expect a number ultra-rich in India to purchase gold both for investment and consumption purpose,” he added.