Nearly 28% urban Indians plan to spend on gold this Diwali : Survey

As per a survey, about 28% of Indians living in major cities are planning to spend on gold in the next three months, highlighting a renewed appetite for the yellow metal due to the waning effects of the second wave of Covid-19. With state governments slowly easing restrictions on movements, businesses especially organised retailers are hoping consumer to show positive sentiment during the festive season this year. It also noted that the gems and jewellery industry was badly affected by the Covid-induced disruptions in 2020 and had shown signs of recovery in January-March this year. But the second wave put a halt to it.

Best time to buy gold

According to market research firm YouGov’s Diwali Spending Index, almost three in 10 urban Indians (28%) are planning to spend on gold in the next three months. Almost, three in five respondents (58%) are planning to buy gold for personal or family use either in physical gold form or through a gold scheme by organised retailers.

It also noted that the remaining 38% are likely to spend on gold for investing in the form of gold funds or in physical gold.

Further the survey stated that nearly 61% of genX (aged 41-56 years) are more likely to buy gold for personal use, than millennials (24-40 years old) (56%) and gen Z (6-24 years old) (54%).

Also, 69% of gold buyers believed that Diwali and festive season is the best time to buy gold, indicating their inclination to spend during the festive season.

Similarly it added that recommendations from friends and family are notably more important to men which is 24%, than women at 10%, while deciding where to buy gold from.

Eastern India highlighted the importance of hallmark certification and offers or discounts at 71% and 50% respectively. While in Southern India, 46% said that making charges appeal more to them, than others.