Online accessibility is a must in this era of increasing global digitisation. Somasundaram PR, Managing Director, India, World Gold Council, commented: “India’s retail investment landscape is evolving, underpinned by government-led financial inclusion programmes, the surge of fintech, and increasing investor knowledge. And this clearly affects the gold industry. Businesses are constantly striving to leverage technology to make gold more accessible to retail investors. To help the gold industry better understand the market we conducted an in-depth survey of more than 2,000 retail investors. Basis this in-depth survey, we have been able to uncover broad insights, extending across the entire purchase journey, delving into demand moments and identifying investor typologies. One statistic that leaps out to me and captures my imagination is that 29 per cent of retail investors have never bought gold in the past but are open to the idea of buying gold in the future. We welcome deeper conversations with the industry to explore how we can help to realise that potential.”

Few key issues addressed in the India Retail Investor Insights report are as follows:  

Trust: 61 per cent of those that have never bought gold in the past but will consider buying in the future said that a lack of trust in the product or industry is a barrier to purchase. The World Gold Council is working with the industry to address this, recently launching the Retail Gold Investment Principles (RGIPs) and collaborating with the industry to operationalise these to build trust in the eyes of potential gold investors.

Education and awareness: 65 per cent of potential gold investors said they have gaps in their knowledge around gold; for example, rural considers cited lack of understanding of what drives the gold price as a barrier (29 per cent) while for urban considerers, perception that gold is unaffordable was the main barrier (29 per cent). Common to both groups was the lack of knowledge of how to buy gold - 23 per cent considerers identified this as a barrier to investing, stating that the process of buying was too difficult or opaque.

Innovation: India’s gold industry is jewellery-led; it is both beautiful and a sound investment. But as the retail investment market evolves, so too must our industry. These insights will help businesses to understand retail investors better and to tailor new products or delivery strategies that meet their needs. Only through innovation can the industry thrive.

The report also deep dives into insights concerning other facets critical to the industry’s growth such as financial inclusion, understanding the behaviour and attitudes of different types of retail investors, the role of gender in urban and rural India, and the rise of financial technology, among others. There is a clear scope to work collectively as an industry to make it easier for investors to understand gold and the gold buying process through tailormade solutions and innovations, helping the industry thrive.

The India Retail Investor Insights report can be viewed at www.retailinsights.gold.