Gold is third most consistently bought investment globally: WGC

Kolkata: The World Gold Council on Wednesday launched its new consumer research report highlighting opportunities for gold for those working in both retail investment and jewellery markets. The new piece of research reveals gold is a mainstream choice – the third most consistently bought investment, with 46% of global retail investors choosing gold products, which is just behind saving accounts (78%) and life insurance (54%). Looking at jewellery, the survey shows that 56% of consumers have bought fine gold jewellery, compared to 34% who have bought platinum jewellery.

The significant piece of research, with an 18,000-strong sample, looks at a range of markets including China, India, North America, Germany and Russia, and highlights unique insights into attitudes towards and perceptions of gold; how and why people buy gold, and also their reasons for not buying.

In addition, the new research reveals that more than a third (38%) of retail investors and fashion enthusiasts have never bought gold in the past but are warm to the idea. This shows a huge potential for the gold market to grow if untapped sources of demand can be converted.

The report states that more than two-thirds (67%) of all retail investors believe that gold is a good safeguard against both inflation and currency fluctuations, and 61% trust gold more than fiat currencies. The industry should build on that confidence, while staying alert to areas where it is weaker.

While people have confidence in gold, there is some mistrust among those that have never bought gold in the past, but are open to the idea of buying it in the future, with 48% and 28% of all potential investment and jewellery consumers respectively citing lack of trust as a significant barrier. That could be mistrust around fake or counterfeit bars and coins, product purity, or the trustworthiness of some retailers.

Millennials’ attitudes towards gold are not so different to those of older generations. But there are perceptual misgivings among the younger Gen Z audience, misgivings which are particularly pronounced in China’s jewellery market. For example, 40% of 18-24 fashion buyers in China agree that gold can bring good luck compared to 88% for those aged between 55-65.