Ultra-HNIs Put 6% Of Investable Wealth In Gold Last Year: Knight Frank

Ultra-high net worth individuals allocated 6% of their total investable wealth in gold last year, according to property consultant Knight Frank India.

In 2022, the average ultra-high net worth individual's wealth allocation in gold was 3% globally and 4% in the Asia-Pacific region.

"According to the Attitudes Survey conducted by Knight Frank, 6% of the total investable wealth of Indian ultra-high net worth individuals was allocated towards gold in 2022," the statement said.

India and the Chinese Mainland were positioned second on the list with a 6% wealth allocation in gold by the ultra-high net worth individuals of both countries in 2022.

Austria ranked first on the list with an 8% allocation.

There has been an increase in the allocation to gold by Indian ultra-high net worth individuals from 4% in 2018 to 6% in 2022, Knight Frank said, attributing the rise to the significant returns that the yellow metal has provided over the years.

Gold has delivered stellar returns of over 69% in the past 5 years (from FY2019 to FY2023). The pandemic has resulted in a low interest rate, and the easy liquidity strategy adopted by the global central banks gave a massive push to prices, the consultant said.

"In the wake of uncertainties in the global economic landscape, consumers resorted to allocating incremental capital to assets that offer stability and serve as a hedge against inflation", Shishir Baijal, Chairman and Managing Director of Knight Frank India, said.