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Gold November 14, 2019 09:30:11 AM

WGC Highlights Key Triggers that Drive Gold Demand

Paul Ploumis
ScrapMonster Author
Nearly 44% of retail investors bought gold as part of managing their risk.

WGC Highlights Key Triggers that Drive Gold Demand

SEATTLE (Scrap Monster): The World Gold Council (WGC) released new report highlighting the various factors that drive gold demand.

According to WGC, the demand for gold among retail investors and fashion and lifestyle consumers tend to increase with their income. Nearly 78% of Chinese consumers belonging to the high income band have bought gold in the past 12 months, whereas in India, it is 59%. Globally, 43% falling in the high income band have purchased gold over the past one year. This compares with 26% each in the low and medium income band.

ALSO READ: World Gold Council Unveils Gold Retail Market Insights

Nearly 44% of retail investors bought gold as part of managing their risk. 31% bought gold upon recommendation by a friend or financial advisor. The price factor prompted 29% to buy gold, the WGC report said. Meantime, gold jewellery purchases are often linked to emotional moments such as anniversaries, birthdays, weddings, etc. An overwhelming 21% of U.S. fashion and lifestyle consumers considered birthday as the top occasion for purchasing gold. Anniversary emerged as the top occasion in China and India, with support of 15% and 17% consumers respectively.

The WGC study also underlined the loyalty of gold investors. Almost 64% of the gold investors stated that they will definitely buy gold products again in the future. Meantime, only 40% of investment funds investors and 39% of cryptos and stocks & shares investors expressed their willingness to invest in the same product in future.

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