In India, the middle class buys the most gold

The Indian Center for Research in the Field of Yellow Metal has prepared a report "Gold Market for 2022" on the consumption of precious metal in the country's households. The report was prepared on the basis of a survey of 40 thousand households. It said per capita consumption of precious metal was the highest among wealthy people, but the lion's share of the yellow metal sales figure was still in the middle-income group. The middle class prefers to buy gold in physical form. 74% of high-income households have regularly bought gold in some form over the past 5 years. At the same time, households with an average income account for 56% of the total consumption of yellow metal in physical form. These households purchase the yellow metal to preserve cash, and also see it as an opportunity to generate additional income.

Thanks to the survey, it was found that precious metal is strongly associated with holidays among Indians. Weddings and festivals are the main reason to buy jewelry. Only about 31% of Indian households buy gold for little reason.

Contrary to popular belief that buying gold is the lot of the rich, the survey found that middle-income households buy the most precious metal, both in value and in kind. The pandemic has become another argument in favor of buying yellow metal as an asset.

The coronavirus pandemic has demonstrated the vulnerability of the global political and financial systems. The chaos caused by the spread of the coronavirus has led to a sharp increase in the volatility of the stock market and lowered its liquidity. Gold is again seen as a diversification tool for the investment portfolio.