Gold, silver and stock market investments: What UBS latest survey suggests

UBS Evidence Lab India Consumption Outlook Consumer survey, released on March 4, suggested that more than half of the respondents, 54 per cent, anticipated demand for gold and silver will increase over the next 12 months with another 25 per cent expecting it to remain the same. It said  higher proportion of respondents, who hold a diploma, graduate or post-graduate degree intend to invest via Systematic Investment Plans (SIP), mutual funds and direct stock investing over the next 12 months.  

UBS said the survey of 1,614 Indian consumers was carried out in 15 cities, with nearly 84 per cent of the respondents living in tier-1 and tier-2 cities, reflecting a largely middle-income and affluent urban demographic. 

UBS noted that India was the world's largest gold consumer until 2013 and is now second behind China. The foreign brokerage said its global team continued to have a constructive view on gold, forecasting an annual average gold price
of $5,200 per ounce and flagging $5,750 per ounce as a potential upside level in 2026. 

"More than half of the respondents (54 per cent) anticipate their gold and silver demand will increase over the next 12 months with another 25 per cent expecting it to keep remain the same," UBS said.

It expects India's gold demand to stabilise at close to 650 tonnes in FY27E with investment demand likely to remain a key drive.

Of the respondents who intend to invest in equities over the next 12 months, the survey findings suggested that a higher proportion of respondents in SEC A intend to invest via Systematic Investment Plans (SIP), mutual funds and direct stock investing versus SEC B and SEC C. 

"The equity strategy team observes that Indian households have among the highest exposure to equities (as a share of their total financial assets) across emerging markets – a factor helps support premium valuations. Although recent data shows the flows into mutual funds are struggling to grow further," it said.

UBS said 68 per cent of respondents in its survey anticipated their household income will increase in 2026 while 30 per cent expected it to remain same. While fiscal measures, including GST reduction and income tax relief,
primarily benefited upper income respondents, nearly one-third of low income households benefited from direct cash transfers and other fiscal benefits, it said.