Listen to this article
A report released by Knight Frank titled ’The Wealth Report 2023’ reveals that Indian ultra HNIs have increased their gold allocation in 2022.
The report says that Indian ultra HNIs now invest 6% of the total investible surplus in gold in 2022 as against 4% allocation in 2021.
Overall, India and China are positioned second in terms of wealth allocation to gold in 2022. Austria ranked first on the list with 8% allocation.
Gold allocation by the Indian ultra-wealthy individuals stood higher than the average allocation of such individuals from both global and APAC region. According to the Knight Frank report, in 2022, the average ultra HNIs wealth allocation in gold was 3% globally and 4% in the Asia Pacific region.
Allocation of investable wealth towards Gold by UHNWIs from various countries
|
Country |
Allocation to Gold |
|
Austria |
8% |
|
India |
6% |
|
Chinese Mainland |
6% |
|
Czech Republic |
5% |
|
United Arab Emirates |
4% |
|
Hong Kong SAR |
4% |
|
Malaysia |
4% |
|
Switzerland |
3% |
|
Australia |
2% |
|
Singapore |
2% |
|
Spain |
2% |
|
Taiwan |
2% |
|
UK |
2% |
|
Ireland |
1% |
|
Italy |
1% |
|
Kenya |
1% |
|
South Korea |
1% |
|
US |
1% |
Source: Attitudes Survey, Knight Frank Research
One of the primary reasons for the rise in the allocation to gold by the ultra HNIs is the significant returns that gold has provided over the years. The yellow metal has delivered a stellar over 69% returns in the past 5 years (From FY 2019 to FY 2023). The pandemic, resultant low interest rate and easy liquidity strategy adopted by the global central banks gave a massive push to the prices, says the report.
|
Financial Year |
Price/10 gm (Mumbai) |
YoY change (%) |
|
FY – 18 |
29,304 |
-1.3% |
|
FY – 19 |
31,191 |
6.4% |
|
FY – 20 |
37,000 |
18.6% |
|
FY – 21 |
49,519 |
33.8% |
|
FY – 22 |
48,018 |
-3.0% |
|
FY – 23* |
52,760 |
9.9% |
Source: CMIE
*BSE Spot Price considered for FY 2023
