79% of investors Russia likely to invest gold!

WGC releases retail gold insights: Russia investment 

World Gold Council unveils Retail gold insights: Russia Investment. The report says, the gold investment market in Russia has ample headroom for growth. Investors feel strongly positive towards gold. They recognise its attributes and want a part of it. And as such, gold should be able to engage with this receptive audience. 

On the one hand, the popularity of savings accounts is over-riding: regarded as safe and wealth protecting, they are by far the most popular investment choice. But alongside this we see the rise of crypto-currencies considered by some to be a high risk investment. 

The punishing rate of VAT has doubtless held back the tide in gold investment, and the expected abolition of VAT is likely to revitalise the market. And any shift towards gold could be further enhanced by challenges in the domestic and global economy. Consumers are deeply concerned about how to protect their wealth in the face of macroeconomic factors and in this, gold has the potential to provide much needed security.

It is deemed to be somewhat experimental, less than one-fifth currently invest in it, but the positivity surrounding gold’s potential and security is strong. We found that 79% of investors would consider investing in gold in the future, and 57% of Russians would consider investing despite never having done so before. 

But investors need hard facts to turn their curiosity into action. Echoing through our research is a need for information around all facets of gold investment; from how it is valued, to its accessibility, the product range and the purchase journey itself. 

The 25 to 34 age group is most engaged with gold and these younger investors want to see relevant messages in the digital space where they are active. 

And it is with younger investors that we see the greatest willingness for portfolio diversification. Online channels are the perfect vehicle with which to reach and educate this audience and build an emotional connection with gold. 

Right now, many of gold’s strengths that would resonate with this group – such as its role in protecting wealth historically – remain un-communicated in the absence of a media buzz.We have segmented the existing and potential audience for investment in gold in order to assess the scale of opportunity, how best to reach different segments and how messages can be tailored to capture attention. 

Segmentation also helps to identify where barriers exist and where product innovation could address the widely held misperception that gold is inaccessible and unaffordable. Russian investors need to feel more familiar with the process of investing in gold, particularly in products with a low entry point – and would like to know more about gold storage. Counterfeiting undermines confidence in the established assaying standard and the possibility of buying counterfeit goods is a threat that plays heavily on their minds. 

But gold is well able to engender confidence and if it can show its lasting value in a changing world, and do so convincingly, it will be well placed to increase its market share among Russian retail investors.