Why More People Like Us Are Investing in Gold

The weekend break of three days brought some important developments for the economy and the markets. The biggest news was that the government has realized that the economy is slowing down and needs a push.

They have announced that GST classification will be changed for many products. For most items, slab rates will be reduced, while for a few they may go up.

• The markets bounced today with a solid 1% jump.

• Nifty Jr closed 1.34% higher, midcaps gained 1.19%, and small caps were up 1.33%. However, small caps are still far from their all-time highs.

• The Nifty Bank was weaker, rising only 0.7% and closing near the day’s low.

• Gold stayed flat at around ₹9,965 per gram.

Other Market Triggers

• Another major development was the upgrade of India’s bond rating by S&P. Global headlines also noted the meeting between President Putin and President Trump.

• Maruti Suzuki was the star performer of the day, jumping 8.75% as the biggest beneficiary of GST cuts on small cars.

What to watch next ?

• Later on Monday night, President Zelensky of Ukraine and several EU leaders are scheduled to meet President Trump at the White House to discuss peace proposals. If these talks succeed, markets may celebrate as war fears reduce and crude oil, logistics, and shipping costs come down.

• Back home, the focus is still on GST rationalization. While it looks positive, the concern is whether it will truly create higher demand. Since the changes will be implemented only after the GST Council meeting, it may take up to two months.

• The markets bounced today, but it is yet to be seen if this move can sustain. Confidence will rise only if the index crosses 25,000.

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What To Read This Week ?

Gold : A New Trend Among Affluent Investors

A recent survey by HSBC among affluent investors reveals a significant shift in gold allocation, challenging long-held myths about who is investing in this precious metal.

The findings indicate that gold is becoming an increasingly popular asset across all age groups, from Gen Z to Baby Boomers.

The Youthful Rush to Gold

Contrary to the popular belief that only older generations accumulate gold, the survey found a remarkable trend among younger investors. For Gen Z and millennials, gold allocation for 2025 has doubled compared to 2024. This data strongly suggests that market-savvy, younger investors are actively turning to gold as part of their investment strategy.

Baby Boomers and Gen X Join the Rally

The increase in gold allocation isn't limited to the youth. Gen X and Baby Boomers also show a very significant change, with their allocation jumping by nearly six percentage points between 2024 and 2025. This movement from approximately 5-6% to 11-12% is a substantial shift, indicating a broad-based, thoughtful change in how affluent and intelligent investors view gold's role in their portfolios.

Physical Gold's Enduring Appeal

Another myth debunked by the report is that digital gold and ETFs have completely replaced physical gold. The survey found that out of every ten affluent investors, five plan to own gold in the next year. Of that group, a significant 41% intend to allocate their funds to physical gold. This highlights the enduring appeal of tangible assets and suggests that while digital options are available, a strong preference for physical possession remains.

The Future of Gold Demand

The current trend among affluent investors may be a precursor to a larger movement. The speaker suggests that this change in perspective has not yet "percolated down to the masses," but when it does over the next few years, it is likely to significantly fuel the rally for gold demand.