Gold Purchasing Report: Middle income group people buy more gold and prefer to keep gold in physical form. This information has been given in a report. India Gold Policy Center’s (IGPC) Gold and Gold Market-2022 report also said that people in higher income group are interested in holding gold in digital or ‘paper format’ (in the form of paper documents).
Middle income group people buy most of the gold in India
Per capita gold consumption is highest among the rich, but its total amount is still with the middle income group. Most of the consumption is in households in the annual income range of Rs 2-10 lakh, which is about 56 per cent of the average amount, the report said.
This is the choice of different income groups
Therefore, they prefer safe investments – ie gold and gold products or safe government products like bank fixed deposits, provident funds, life insurance, post office savings, where the risk is lowest, it said. Whereas for the upper-middle and affluent class with an annual income of more than Rs 10 lakh, savings are their extra earnings, surplus money lying idle and earning on capital gains. Hence they prefer to invest in stocks or shares, derivatives and real estate.
Demonetisation did not affect the purchase of gold
The household gold consumption report was prepared through a survey conducted by IGPC in collaboration with People Research (PRICE) on India’s consumer economy. The survey was done among 40,000 households. The report further revealed that the consumption of gold was not affected by demonetisation or the implementation of GST (Goods and Services Tax).
It said that at least 74 per cent of high-income households have confirmed buying gold in the last five years.
43% Indian households buy gold for weddings
The report also found that gold is a symbol of celebration, and weddings and festivals account for 65-70 per cent of jewelery purchases while 30-35 per cent of discretionary spending is among the reasons for purchase. It said that about 43 percent of Indian households buy gold for weddings, 31 percent buy gold without any special occasion.
This is the assessment of IGPC
Arvind Sahai, Chairman, IGPC said, “Contrary to the general mindset that gold is for the rich, the survey showed us that middle-income households buy the most gold in value as well as quantity. We must acknowledge that wealth As the pandemic has played an important role in increasing gold consumption.”