Report indicates Indian households may be overestimating the value of their gold jewellery due to various factors.
Summary
A Kotak Equities report suggests Indian households might be overvaluing their gold jewellery due to factors like making charges and falling stone prices, leading to lower real returns compared to headline gold price appreciation. This is particularly impactful for lower-income families. The report highlights a potential disparity between perceived and actual investment returns in gold.
Key Points
- Report by Kotak Equities warns of overestimation of gold jewellery value by Indian households.
- Making charges and falling stone prices are cited as reasons for diluted real returns.
- Jewellery-heavy portfolios have underperformed compared to headline gold price appreciation.
- Lower-income families are particularly affected by the discrepancy in returns.
Full Article
A report by Kotak Equities warns that Indian households may be overestimating the value of their gold jewellery, as making charges and falling stone prices have sharply diluted real returns. Despite soaring bullion prices, jewellery-heavy portfolios have lagged, with actual gains far below headline gold appreciation, particularly for lower-income families.