Middle-income households buy 56% of India's gold

The middle income group, or households earning ₹2-10 lakh a year, invests more on gold than the rich, accounting for about 56% of annual gold intake of 800-850 tonnes, a recent survey shows.

National household survey of gold consumption done by the India Gold Policy Centre (IGPC) at IIM Ahmedabad in association with People Research on India's Consumer Economy (Price) has revealed that cash payment remains the most preferred way to buy gold, with more than 90% of the households paying in cash. IGPC is sponsored by the World Gold Council.

More than 75% of Indian households own gold in some form or another, according to the survey carried out among both rural and urban households across the country. Per capita consumption of gold remains highest among the rich, and increasing income boosts one's propensity to consume gold. However, the share of gold in one's investment portfolio doesn't increase at the same speed as their income, the survey said.

Interest for digital or paper gold is increasing among top income class, though. Households don't prioritise savings and investment when purchasing jewellery.\