The World Gold Council yesterday released the findings of its Gold Retail Market Insights study, believed to be the largest multi-country survey ever conducted on gold.

Based on a comprehensive survey covering an 18,000-strong sample across a range of markets (India, China, the US, Germany, Canada and Russia), the study uncovered valuable insights into what, how, why and where people buy gold. And put this into the wider context of retail investment and luxury goods in general.

Some of the key findings revealed by the study are:

Overview:

• Gold is the third most consistently bought investment – 46% of global retail investors have chosen gold products, behind savings accounts (78%) and life insurance (54%).
• In fashion, 56% of consumers have bought fine gold jewellery

Investment

• In major markets, investors globally trust gold more than currencies. In India the figure stands at 75%, while in China it was 69% and in US 60%
• 34% of 18-38 year olds globally had invested in gold in the past year

Jewellery / Lifestyle

• 48% of consumers considering buying gold had bought in the past
• 81% of fashion and lifestyle consumers consider gold is valuable  enough to pass on as a heirloom
• Jewellery purchases and firmly embedded in emotional moments - key milestones, anniversaries, Valentine's Day religious festivals
• Globally 26% of Gen Zs bought gold jewellery in the last year. However, in China, the figure fell to 18%
• 46% of Gen Z globally (only 31% in China) said gold helps them fit in with friends

Technology

• Global retail investors only buy 9% of gold coins and 6% of jewellery online, compared with 25% of gold-backed ETFs

Barriers

• Nearly 20% and above worry about purity or about buying fake or counterfeit products
• 14% of potential jewellery buyers and retail gold investors say they don’t trust the retailers.

Future Behaviour

• 64% of those who have invested in gold in the past -- be it jewellery, bars & coins or ETFFs - would definitely buy again in the future
• 38% of those surveyed had never bought gold in the past, but were open to doing so in the future
• Opportunities for growth in retail investment are lower in mature gold markets such as India and China – higher in Russia
• In the jewellery and luxury goods category, opportunity is higher in the US than in mature gold markets like India and China

WGC has highlighted five key themes that emerged from the data analysis:

1. People are confident in – and loyal to – gold
The industry should build on that confidence.

2. But there are areas of mistrust
There is some mistrust amongst people that have never bought gold – mainly around product purity and trustworthiness of some retailers. 

3. Gold can resonate more deeply among younger consumers
Millennials’ attitudes towards gold are not so different to those of older generations. But there are perceptual misgivings among the younger Gen Z audience

4. Technological innovation can create a route to new audiences
Gold compares poorly to other retail investments and fashion items when looked at through the lens of digital distribution, marketing and communications.

5. There are knowledge gaps in the minds of potential gold buyers that need to be filled
More quality education is needed around the benefits of owning gold; and, in future, the next generation of potential gold buyers need better education around the industry’s ethical credentials.

Commenting on the findings, David Tait, CEO, World Gold Council, said, “We have analysed changing habits in India, China, the US, Canada, Germany and Russia, presenting a unique and broad perspective on how the market is transforming, what gold means to people, where its greatest opportunities lie and the core challenges that need to be overcome.”

The WGC also said that it plans to delve even deeper into the data and will publish country- and sector-specific reports focused on peoples’ behaviours and attitudes towards gold, with the intention of supporting the healthy development of the gold market.   

More information is available at www.retailinsights.gold