20% Indians is Willing to Buy Gold Even If Prices Rise..!

About 20% Indians is willing to buy more gold even if prices rise, says a survey by the World Gold Council (WGC) and industry chamber FICCI.

The survey, part of a report, ‘Why India Needs a Gold Policy’, released here on recenlty, said: “

Among respondents,

*  19% said they would buy more gold if prices rose

*  34% said their behaviour would not change.

*  14% said they would stop buying gold if prices increased

*  6% said they would sell.”

The survey covered 5000 respondents & was conducted during the period when the erstwhile United Progressive Alliance Government increased the import duty & the Reserve Bank of India (RBI) brought in the ‘80:20’ scheme (scrapped recently) to check the ballooning current account deficit (CAD) in July 2013.

The survey also found that consumers continue to buy gold regardless of their circumstances, as

* 77% of the respondents bought gold at least once in 2013; more than half bought more gold in 2013 than in the previous year.

* 77% said they bought gold as a safe investment

* 53% considered it primarily an adornment

* 50% believed that it was for both.

In terms of monetisation of gold, half of the people surveyed said they would be willing to deposit their gold to earn interest, 72% said they were happy to receive different gold than their initial deposit, 62% said they would prefer cash or / India-branded coins at maturity.

The council estimates that nearly 22000 tonnes of gold in Indian households can be used to fund economic growth.

Policy suggestions...!

A report based on the survey has recommended a seven-point agenda for the new gold policy, including driving gold standardisation so that buyers & sellers have faith in quality and price, introducing gold - backed investments & saving products, and revitalising the Gold Deposit Scheme.

It also suggested setting up an India Gold Exchange and a Gold Board, developing accredited refineries & allowing Indian banks to use gold as part of the liquidity reserves.

“Consumption of gold has always been intertwined with the Indian household’s financial planning goals and has, through generations, remained a natural choice of saving of all households,” said Mr. A Didar Singh, Secretary General, FICCI.

Mr. Somasundaram PR, India Managing Director, World Gold Council, said the need of the hour is to re-engage all stakeholders to develop a coherent long-term ‘India Gold Policy’ that “results in a robust infrastructure for gold, drives standardisation & transparency, encourages gold-based investment products and supports the economic priorities of the country.”

Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Top 10 Reasons for Silver's Rally and Best way of Investment...!

 Top 10 Reasons for Silver's Rally and Best way of Investment...! by Mr. S. Sridharan, Financial Planner, https://www.walletwealt...