Gold retains its gleam as a savings-investments tool — and its allure for personal consumption is growing
savings instrument and form of insurance all rolled into one in this country, it is the yellow metal that Indians love: gold. Every household in India — from those at the bottom-most rung of the income ladder to the super-rich — has some amount of gold. However, the ways in which this item is being consumed by different household segments are changing.
Universal penetration: Over 87% households are gold-owners, and 1 in 2 households has purchased gold during the last five years. Rural consumers are significant users of gold, with 63% ownership.
Gold and gold-related products investors in 2020-21 were to be found among 7% of destitute families (those earning less than ₹1.25 lakh annually at 2021 prices), 16% of aspirers (annual income between ₹1.25-5 lakh), 23% of the middle class (yearly income of ₹5-30 lakh) and 33% of rich households (those earning more than ₹30 lakh annually).
However, there are huge differences in the amount invested in gold and gold-related products in these households. For instance, while the ticket size is ₹5,000 for destitute households, it's ₹16,000 for aspirers, ₹59,000 for middle class, and ₹1,81,000 for rich households.
Middle bulge: While per-capita gold consumption is highest among the rich, gold consumption is largely a middle-class phenomenon. Over the years, the majority of gold buyers have been concentrated among households with annual incomes in the range of ₹3-15 lakh.
An interesting aspect of gold ownership compared to banking account ownership is that while the
