Drivers of demand
Why do people buy gold? The long answer is that it depends on a whole host of different factors, including people’s attitudes and their motives at the time of purchases. But, at a high level, a few factors stand out.
Demand rises with income
It may seem obvious, but people’s demand for gold increases with their income. This is true of retail investors and fashion and lifestyle consumers across all markets.
Motivations for buying gold
What consumers say
Global retail investors
Global fashion and lifestyle consumers
Global retail investors
Percentage of people who have bought gold in the past 12 months by income band
- All
- Global
- China
- India
- US
- Germany
- Russia
- Canada
80%
60%
40%
20%
0%
China
India
Global
US
Germany
Russia
Canada
Low
Medium
High
Base: USA, Germany, China, India, Russia, Canada
Global fashion and lifestyle consumers
Percentage of people who have bought gold in the past 12 months by income band
- All
- Global
- China
- India
- US
80%
60%
40%
20%
0%
Global
China
India
US
Low
Medium
High
Base: Global (US, China, India)
Macro risks and price trends are triggers for gold investment
0%
bought gold to manage risk – either to diversify their risk or move from high to low risk investments
0%
bought gold either on the recommendation of a financial advisor or a friend – highlighting the importance of marketing and communications
0%
bought gold because the price was low or on an upwards trend
Trigger for investment in past 12 months
Risk
Recommendation
Price
44%
31%
29%
19%
Wanted to invest in something that was low risk
20%
It was recommended to me by a friend
17%
The price of the investment was on the way up
18%
15%
It was recommended to me by a financial advisor or other professional
15%
Price of the investment was low
17%
Wanted to spread risk across different types of investments
44%
19%
Wanted to invest in something that was low risk
18%
17%
Wanted to spread risk across different types of investments
31%
20%
It was recommended to me by a friend
15%
It was recommended to me by a financial advisor or other professional
29%
17%
The price of the investment was on the way up
15%
Price of the investment was low
Base: Bought gold in past 12 months (US, China, India, Germany, Canada, Russia): Gold
Jewellery purchases are firmly embedded in emotional moments
Jewellery is often bought at emotional moments - personal celebrations of life’s key milestones. Anniversaries, Valentine’s day and religious festivals are all occasions where gold jewellery has a strong foothold.
There are nuances, though - the relative importance of each occasion varies by market
Anniversaries top the list in China, while in India they are matched by weddings. In the US, gold jewellery is most often bought for a birthday.
US, Female, 25… I prefer to buy gold jewellery in special occasions so that when I see it I can remember the best moments of my life.
Global fashion and lifestyle consumers
Occasion for buying gold jewellery
Base: Bought gold jewellery in past 12 months (US, China, India)
Global fashion and lifestyle consumers
Top 5 occasions for gold jewellery purchasing by market
US
China
India
21%
Birthday
15%
Anniversary
17%
Anniversary
16%
As a treat
13%
Birthday
17%
Wedding
11%
Anniversary
13%
Valentine’s day
12%
Birthday
11%
Mother’s day
7%
Qixi
12%
As a treat
11%
Christmas / Hanukkah
6%
Golden Week
11%
Religious Festival
Base: Bought gold jewellery in past 12 months (US, China, India)
Gold investors are loyal
Gold buyers are loyal. In fact, they are more loyal than investors in other asset classes.
Germany, Female, 39… it is a childhood dream to own a gold bar…
0%
of people who have invested in gold in the past - be that jewellery, bars and coins or ETFs - would definitely buy again in the future
Investment
% that have previously invested in the product and say they will definitely buy again in the future.
Base: Global retail investors (US, India, China, China, Russia, Germany)
