A Study on Perception of Investors Towards Gold as an Investment Avenue in India
“A study on perception of investors towards gold as an investment avenue in India”
EXECUTIVE SUMMARY
The perception about gold in India has come a long way from the days when its main function was to merely adorn and act as a status symbol. The emotional investment in the metal was so huge that parting with it seemed unthinkable. Now, however, it is becoming clear that an increasing number of Indians are realizing that gold deserves a place not just in the cupboard at home or the bank locker, but also in their investment portfolio.
Gold jewellery represented around 75 per cent of the total Indian gold demand in 2010, the remainder accounted for by investment and technology. Our macroeconomic forecast to 2020 shows India is poised for a very strong period of economic growth and this has significant, positive implications for all forms of gold purchasing in India. With 50 per cent of the Indian population, below 25 years and approximately 150 million weddings anticipated over the next decade, which will drive gold consumption. The objective of the study is to better comprehend the ever-growing demand for gold in India irrespective of the continuous escalation in its price. The study is based on the hypotheses that shows the factors which influence the investment in Gold in India. The concluding observation is that demographic variables like Age, Marital Status and Occupation had an impact on the perception towards investing as well as not investing in Gold.
CHAPTER 1 INTRODUCTION
1
1.1 Gold in Monetary System
Economic and financial transactions among different countries require some sort of arrangement that could facilitate settlement of payments. These arrangements form the (basis) subject matter of the International Monetary system. IMS we find today is the result of a century – long evolution going back to the days of the gold standard and even earlier when costly metals
were used for making payments. Gold has been used as the currency of choice
EXECUTIVE SUMMARY
The perception about gold in India has come a long way from the days when its main function was to merely adorn and act as a status symbol. The emotional investment in the metal was so huge that parting with it seemed unthinkable. Now, however, it is becoming clear that an increasing number of Indians are realizing that gold deserves a place not just in the cupboard at home or the bank locker, but also in their investment portfolio.
Gold jewellery represented around 75 per cent of the total Indian gold demand in 2010, the remainder accounted for by investment and technology. Our macroeconomic forecast to 2020 shows India is poised for a very strong period of economic growth and this has significant, positive implications for all forms of gold purchasing in India. With 50 per cent of the Indian population, below 25 years and approximately 150 million weddings anticipated over the next decade, which will drive gold consumption. The objective of the study is to better comprehend the ever-growing demand for gold in India irrespective of the continuous escalation in its price. The study is based on the hypotheses that shows the factors which influence the investment in Gold in India. The concluding observation is that demographic variables like Age, Marital Status and Occupation had an impact on the perception towards investing as well as not investing in Gold.
CHAPTER 1 INTRODUCTION
1
1.1 Gold in Monetary System
Economic and financial transactions among different countries require some sort of arrangement that could facilitate settlement of payments. These arrangements form the (basis) subject matter of the International Monetary system. IMS we find today is the result of a century – long evolution going back to the days of the gold standard and even earlier when costly metals
were used for making payments. Gold has been used as the currency of choice