UHNWIs expected to increase investment allocation in Gold in 2019: Knight Frank Report


Higher positive sentiment expected to translate into incremental purchase of Gold this Akshaya Tritiya

On an average, Gold finds 4% allocation in the overall investment portfolio of Indian UHNWIs

According to the Attitude Survey conducted by Knight Frank, 14% of Indian ultra-high networth individuals (UHNWIs) are likely to increase their investment to Gold asset class in 2019, 3% higher compared to the year 2018.

Globally, 20% of survey respondents said that they are going to increase allocation to Gold in 2019, a higher percentage when compared with 11% citing to have increased allocation in 2018. The positive attitude of UHNWIs towards investments in the asset class has also gone up in Asia with 25% expecting an increase when compared to 19% who cited an increase in allocation in 2019. Knight Frank conducted the survey to map the investment sentiment of UHNWIs towards Gold as an asset class in 2019.

“Globally, bullion led by gold has always been considered a safe investment and in countries with cultural affinity towards the yellow metal, we are seeing a renewal of interest in remaining investment in this asset class. Like all investments gold also witnesses volatility but has remained largely stable with a upward bias for long periods of time. While India is one of the largest consumers of gold, it has usually been in the form of ornaments for retail purpose. However, in recent times, we have seen investors purchase gold and bonds and expect the trend to grow further. With the optimistic outlook towards investments in the asset class, on the auspicious occasion of Akshaya Tritiya, we expect a number ultra-rich in India to purchase gold both for investment and consumption purpose.”says Shishir Baijal, Chairman & Managing Director, Knight Frank India

Key Inferences of the Attitude Survey:

• Asset allocation to Gold: Indian UHNWIs have a higher allocation towards Gold in their investment portfolio (4%) than the global average (2%) and Asia average (3%)

• Expected change in allocation to Gold in 2019: 14% of Indian UHNWIs are expected to increase their allocation (11% in 2018)

• With 55% UHNWIs from China citing to increase their Gold allocation this year (45% in 2018); the country has been a major influence in improving the global and Asia averages

• Globally, 20% UHNWIs are expected to increase their allocation (11% in 2018). In Asia, 25% UHNWIs are expected to increase their allocation (19% in 2018)