- India’s ultra-high-net-worth individuals (UHNIs) allocated 6% of their total investable wealth in the gold last year.
- In 2022, the average UHNI wealth allocation in gold was 3% globally and 4% in the Asia-Pacific region.
- Indian UHNIs have stepped up gold allocation from 4% in 2018. This is because gold has delivered returns of over 69 percent in the past 5 years. The
- Pandemic resulted in a low interest rate and an easy liquidity strategy adopted by central banks gave a massive push to prices.
- 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.
HIGH-NET-WORTH INDIVIDUAL (HNWI)
- A high-net-worth individual is somebody with at least $1 million in liquid financial assets.
- HNWIs are in high demand by private wealth managers because it takes more work to maintain and preserve those assets.
- The United States had the most HNWIs in the world in 2021, with more than 7.4 million people
- A very-high-net-worth individual has a net worth of at least $5 million while an ultra-high-net-worth individual is defined as having at least $30 million in assets.
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB