People’s perception towards gold as an investment

Submitted in the partial fulfilment of the requirements for the degree of

bachelor of business administration

Submitted by: Group no 32

Under the guidance of:
CA Minouti Jani

FACULTY OF BUSINESS ADMINISTRATION (FOBA)

Ahemdabad-38006

MARCH- 2025

1
 GROUP MEMBERS

Sr. Roll Name of student

no. no.
1 311 Barapatre Aryan Naynesh
2 312 Bavarva Markand Bakulbhai
3 313 Bera Susmita Manas
4 314 Bharmal Mariya Murtuza
5 315 Bisht Ishani Surendra
6 316 Bohra Vinamra Manohar
7 317 Chaudhary Ankur Kumar
8 318 Chaudhary Krishnakumar Jitubhai
9 319 Chauhan Daksh Rajeshkumar
10 320 Chauhan Dhruv Pramod

2
 FACULTY OF BUSINESS ADMINISTRATION
BBA PROGRAMME
GLS Campus, Opp. Law Garden, Ellisbridge, Ahmedabad – 380006, INDIA
Tel.: 079 – 26468511; E-mail: [email protected] Web.: www.glsbba.org
www.glsuniversity.ac.in

CERTIFICATE OF SUBMISSION OF PROJECT

REPORT
This is to certify that the report submitted by the under mentioned students of
our eminent institute is in partial fulfilment of the requirement for the
completion of ‘Capstone Project’ at the Third Year B.B.A. for the Academic
Year 2024 – 2025.
Title of the Project: People’s Perception Towards Gold as an investment

Signature: Signature:____________Signature:___________________
Dr. Shefali Dani
Dean Project Guide Examiner
Project report submitted by:
Roll
Name of the students in the group Batch no. Enrollment No.
1 2022 - 2025 311
Barapatre Aryan Naynesh 202201922010019
2 2022 - 2025 312
Bavarva Markand Bakulbhai 202201922010020
3 2022 - 2025 313
Bera Susmita Manas 202201922010022
4 2022 - 2025 314
Bharmal Mariya Mutuza 202201922010026
5 2022 - 2025 315
Bisht Ishani Surendra 202201922010031
6 2022 – 2025 316
Bohra Vinamra Manohar 202201922010034
7 2022 - 2025 317
Chaudhary Ankur Kumar 202201922010039
8 2022 - 2025 318
Chaudhary Krishnakumar Jitubhai 202201922010040
9 2022 - 2025 319
Chauhan Daksh Rajeshkumar 202201922010041
10 2022 - 2025 320
Chauhan Dhruv Pramod 202201922010042

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 ACKNOWLEDEGMENT

We would like to express our sincere gratitude to all those who have supported and guided us
throughout the completion of this project on “Perception towards Gold as an Investment.”

First and foremost, We extend our deepest appreciation to my project mentor CA minouti
jani for their invaluable guidance, constructive feedback, and constant encouragement, which
have been instrumental in shaping this research. Their expertise and insights have greatly
enriched my understanding of the topic.

We would also like to take this opportunity to thank our director Dr. Shefali Dani for
providing us with all the help, encouragement and guidance to complete the research project.

We are also grateful to Faculty of business administration, GLS university for providing
us with the necessary resources and a conducive learning environment to carry out this
research effectively.

A special thanks to our family and friends for their unwavering support and motivation
throughout this journey. Their encouragement has been a source of strength for us.

Lastly, we extend my heartfelt gratitude to all the respondents and industry experts who
contributed their time and insights, making this study more meaningful and insightful.

This project is the result of collective efforts, and we truly appreciate everyone who has
played a role in its successful completion.

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 PREFACE
As a part of the course curriculum prescribed by the GLS University for the third year
students of the Bachelors of Business Administration, we are required to prepare and submit
a research project on an industry. The research is to involve elements of primary and
secondary data collection and analysis.

The academic objective behind preparing the project report is to include management theories
taught in the classroom and their practical application.

The preparation of this report is based on the facts and findings noted during the primary data
collection process of the questionnaire analysis, and personal interviews of those who have
been investing in gold, professionals providing financial services. Our research also takes into
account the information collected from various secondary data sources such as the articles
and research papers found on the internet and other reference books.

Despite our best efforts, there may be omissions and errors, which may please be excused.

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 ABSTRACT

Investment makes one's wishes become reality and live life to the fullest without ever caring
about the future. Although there are investment portfolios to be had for the investors,
investing in Gold is regarded as a secure investment due to its high profitability and liquidity.
The data were obtained through convenience sampling technique. Primary data which are
obtained by employing structured questionnaire from a sample of 302 respondents.

Therefore an effort has been made to find out the factors which affect the investors to invest
in gold investment, investor attitude towards hurdle in gold investment and to ascertain the
investors level of satisfaction in different motivating factor. This research showed that the
investors are liked to purchase jewellery since they don't know other investments in gold such
as gold ETF, gold mutual fund, gold account etc. Chi Square test is applied to analyze the
data. It is discovered that there exists a significant association between purpose of investment
in gold and respondents perception on risk in purchasing gold.

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 TABLE OF CONTENTS

SR. No. Content Page no.

1 Introduction 8
2 Literature review 16
3 Objectives 24
4 Research methodology 26
5 Data analysis 30
6 Hypothesis analysis and interpretation 49
7 Overall findings 60
8 Limitation 62
9 Conclusion 64
10 Annexure 66
11 Bibliograpghy 73

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 Introduction

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Gold is one of the most coveted precious metals in the world, and throughout history, it has
symbolized wealth, power, and prosperity. For many centuries, gold has been a part of the
financial systems of many civilizations, serving as a medium of exchange, a store of value,
and a means of wealth preservation. Unlike other commodities, gold occupies a special
position because of its intrinsic value and universal acceptance, making it an attractive and
reliable investment option.

For India, the connection with gold goes beyond mere economics; it's a culturally and
emotionally significant aspect. Gold is more than a monetary asset because of its strong link
with Indian traditions, religious rituals, and social ceremonies. Hence, it has always been a
favorite investment option, more so in uncertain times when gold is perceived to be a "safe
haven" asset.

Demand for gold in India remains strong as the metal has been an ornamental asset and a
financial hedge against inflation and market volatility. Typically, investors make a choice
among different forms of investment in gold-physical gold and paper gold: exchange-traded
funds, sovereign gold bonds, and digital gold. The facility of liquidity, low risk, and the
likelihood of value appreciation further enhance its appeal.

Gold is a competitor to a plethora of alternatives in the contemporary investment scenario,

including equities, real estate, fixed deposits, and mutual funds. Still, gold forms an integral
part of a well-diversified portfolio and acts as a stable investment during times of economic
recession. This project aims to understand the perception of gold as an investment in India,
analyze factors that drive investor behavior, and explore its role in financial planning.

History of gold investment :-

Gold is the most well-liked commodity of all time. From being employed in early
civilizations as a symbol of status and to pay tribute to the gods to being utilized as currency,
gold has remained a constant shadow of human culture evolution from the ancient to the
contemporary world.

Gold has been greatly esteemed for its peculiar and desirable attributes since as early as 4000
BC. The world's oldest gold treasure is between 4,600 BC and 4,200 BC and was unearthed
at a Bulgarian necropolis in Varna.

There is no era or culture in which gold cannot be seen to have great value. From ancient
Egypt to the Aztecs, China's numerous dynasties and the Grecian and Roman treasure
hoarding gold is the ultimate symbol of power and wealth. Both a unit of currency along with
a wealth standard, gold was the foundation on which the international economy as it exists
today is built. Without gold, a monetary standard would not exist and the prosperity of
commerce that relied on it.

Historically, gold has been employed frequently as an instrument of bartering or exchange. It

was originally utilized as a currency back in 500 BC, when Darius the Great, the leader of the
Persian Empire, stamped the first ever gold coin, the "daric," to assist in financing
the growth of his army into foreign lands. Until the previous century,
most nations across the globe utilized gold and silver coins as currency.

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It wasn't until the 1930s with the global depression, that nations stopped using the gold
standard. The United States Congress enacted the Mint and Coinage Act of 1792. The act
instituted a fixed rate of gold equated to parity with the US Dollar. The act had far-reaching
consequences with respect to modern history involving the use of gold as a valuable metal.
According to the new law, gold and silver coins were lawful money in the US. Gold, which
nowadays is 75 times more costly than silver, was just 15 times more expensive than silver
then. The US mint therefore purchased and sold silver and gold at a price ratio of 15:1.
However, the advent of the American Civil War altered this ratio.

Later, in 1873, silver was taken out entirely from the fixed rate system of the US mint and a
bill named the Coinage Act of 1873 was enacted to formalize the withdrawal of silver dollars
from the monetary system of the US.

The 1800s saw a series of gold rushes, where speculative entrepreneurs hurried off to
inhabitable regions in pursuit of the valuable metal, hoping to strike it rich millionaires if they
found gold. The significant gold rushes in North America during the time were North
Carolina in 1799, San Francisco in 1848 and Klondike in Canada, 1896. Australia also
experienced several gold rushes during the later
part of the 19th century from 1850. In fact, the gold rushes populated regions of the great
Australian outback, which were not inhabited by humans before. Now, these places are
thriving cities and they are due to the arrival of the speculators in the 1800s.

Another significant event in the contemporary history of gold is the Bretton Woods
agreement. The two world wars had ruined the international financial markets and after the
end of World War II, the world leaders gathered to establish a gold exchange standard for the
world, to peg it to the US Dollar. After the end of the war, the US was the most powerful
country, both economically as well as militarily.

Therefore, the US Dollar was selected under the Bretton Woods agreement and this made the
US very dominant on the global markets. The action is one of the most key issues for the
value of gold and for the US economy, in that it led the way for the US to emerge as a world
superpower.

Both as an investment and as currency, the history of gold investing is a sophisticated one
and is comparatively recent. While acquiring wealth (and investing) is no new human
inclination, the framework for a benchmark standard of gold pricing against paper currency
only developed in the last centuries. Europe was the first continent to introduce gold
standards at the end of the 19th century and the US did so after WWII.

Following the second world war, the US dollar was the primary currency to be held by other
governments since it was the sole currency that remained backed by gold. This lasted until
1973 when America became the last nation to drop the gold standard. The reason behind this
was that the nation needed more money to finance the Vietnam war.

Gold bought as an investment actually only gained traction after the 1970's when The United
States again legalized owning and trading in physical gold. Until 1975, the Gold Reserve Act
Of 1934 had outlawed the possession of gold.Gold is a favored investment among a wide
variety of investors who want to diversify their portfolio beyond the usual stocks and shares
and in the processlower their risk. In the long term gold has always maintained its value

10
compared to other asset classes and in the past 45 years has been proven to have
outperformed shares and stocks.

Gold is now usually bought as an inflation hedge and its price has often been found to
increase during economic crisis. The primary reason for this is that during economic
downturns, individuals tend to seek tangible assets wherein to keep their wealth should the
market collapse. An excellent instance of this is when, following the 2009 financial crisis, the
value of gold went up to its all-time record peak.Given ongoing geopolitical tensions and
increased distrust of the present financial system, the trend towards gold investments has
expanded considerably in the last two decades. With Britain on the move towards an
uncertain future outside the European Union, it is possible that investor appetite for physical
gold will keep growing.

Cultural influence:-

Gold has deep cultural significance in India, which cannot be possible and just valued solely
for its possible financial price. The history connecting the Indian civilization to the metal is
centuries old, and this cultural association has influenced the way Indians view gold, mainly
as an investment. For the Indians, gold meant just not a commodity but a wealth, status, and
prosperity symbol, which explains its unique position in the investment landscape.

The most significant cultural influence on gold investment in India is its role in religious and
social rituals. Gold is a sacred metal, and its use is deeply embedded in the fabric of Indian
life, especially in religious ceremonies, marriages, and festivals. Gold is considered to have
spiritual significance and is believed to bring good fortune and prosperity. In Hinduism, it
often represents Goddess Lakshmi-the goddess of riches. Thus its value is escalated even
more, especially in gold in weddings- a must-have at any wedding: representing the woman's
wealth, her family and the prosperity they entail. This religious and cultural belief tends to
keep on a steady footing demand for it and makes this a constant accompaniment with social
and family traditions.

Moreover, in Indian society, gold has often been used as a status symbol. Owning gold is a
status symbol, and it is usually used as a way of showing wealth. Whether in the form of gold
jewelry, coins, or bullion, the possession of gold is an indicator of a family's affluence and
success. In rural and urban areas alike, families invest in gold to enhance their social
reputation and provide for future generations. Further strengthening this emotional and
cultural bond, the tradition of gifting gold on festivals and marriages has made it an evergreen
asset of Indian homes.

In Indian culture, gold also holds an important position in wealth preservation. Since ages,
gold has been considered as a safe investment that saves wealth from going into the dumping
ground of inflation and economic vagaries. For long periods in Indian history, financial
literacy was low, so gold is more of a hedge. Gold can be perceived as a hedge against
currency devaluation and political instability. In the Indian context, political instability has
long been a threat. Hence, many households invest in gold for many decades, considering
gold as a stable and low-risk asset.

Similarly, cultural attitudes toward gold investment have been shaped by historical events as
well. Colonial rule, economic reforms, and periods of financial instability sustained the idea
that gold was an absolute safe-haven investment opportunity. At times when there were

11
periods of economic uncertainty, like when the balance of payments crisis hit the economy in
1991, it became a widely popular store of value for most Indians. When it came to fighting
inflation, political instability, or devaluation, the ability of gold to sustain would appeal to
investment seekers. This enhanced the idea that gold is not just a valuable resource but also
an investment for the future of their generations.

The cultural affinity towards gold, though very deep in modern India, has altered its mode of
investment. Of course, while the preferred means of investment has continued to be gold
jewelry, the world has also increasingly shifted towards much more formal and structured
investments in gold coins, gold bars, ETFs, and sovereign gold bonds, thereby making
possible a convenient and relatively safe entry to the gold market without having the gold in
actual physical possession.

The Indian government has also played a role in the cultural perception of gold investment by
encouraging people to invest in more productive and formal ways through initiatives like the
Gold Monetization Scheme and Sovereign Gold Bonds. These efforts will reduce the physical
gold demand, increase financial inclusion, and help channel savings into more productive
avenues.

In conclusion, cultural factors have significantly influenced gold investment patterns in India.
The metal has been deeply ingrained in religion, social status, and the preservation of wealth,
making it an enduring and irreplaceable asset in Indian households. This influence continues
to shape how Indians view gold, thereby ensuring its place as one of the most trusted and
sought-after investment options in the country. With India's progressive and modern
transformation, gold, both as an icon of legacy and a bank account, seems to bridge two
periods: past and present.

Factors Influencing Gold Investment in India:-

Gold has been an investment destination of choice in India for centuries. The reasons can be
traced back to a blend of cultural, economic, and psychological factors that have molded
Indian investors' behavior to include gold as a major investment component. The following
explains the major influences behind gold investments in India in order to appreciate why it
still remains a mainstream investment despite the plethora of new financial products.

1. Cultural and Emotional Attachments

The cultural influence on gold investment in India is deep. Gold is often considered more
than a commodity; it has emotional and symbolic value. It is considered a sign of prosperity,
social status, and security, with strong connections to religious practices and weddings. Many
Indian households invest in gold as part of their cultural inheritance, passing it down through
generations. This emotional value attached to gold is not just an investment tool but also a
legacy that one can touch.

2. Perceived Safety and Wealth Preservation

Gold has traditionally been considered a safe haven during the times of economic instability.
Gold, in Indian investors' perceptions, means stability and a store of value that one can
depend on. Gold has traditionally been a performer in times of inflation, currency
devaluation, and political upheavals. In the event of economic uncertainty, such as during the
2008 global financial crisis or the COVID-19 pandemic, many turn to gold as a means to
protect their wealth from the erosion caused by inflation or market volatility.

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3. Inflation Hedge
One of the strong factors influencing the investment in gold is the hedging aspect against
inflation. Due to the rising inflation in India, the purchasing power could decline. In such a
scenario, investors look for assets that can protect this power. Throughout history, gold has
always seen an increase in value and has increased in value more than inflation. This factor
makes it extremely attractive for the investors who want to protect savings from steep price
rise.

4. High Liquidity
Another reason why gold is so popular as an investment is its liquidity. Gold is a very liquid
asset because it is easily tradable and recognized all over the world. Whether in the form of
coins, bars, or ETFs, gold can be easily converted to cash or used as collateral for loans. This
liquidity feature appeals to investors who value the flexibility to access funds in times of
need.

5. Government Policies and Schemes

The government has also encouraged gold investment through policies like the Sovereign
Gold Bonds and the Gold Monetization Scheme. These schemes reduce the demand for
physical gold while providing investors with safe and regulated alternatives. They also offer
interest on gold holdings, making gold a more attractive investment for those seeking
additional returns.

6. Diversification and Portfolio Balance

Another important role of gold is in portfolio diversification. Indian investors holding a large
portion of their savings in real estate are increasingly discovering the advantages of
diversified portfolios incorporating gold. The addition of gold in their portfolios will thus
help investors drastically cut exposure to market risks and guarantee long-term financial
stability.

As such, investment in gold in India involves a multifaceted influence of factors, starting

from the cultural attachment to the purely economic influence of inflation hedging and wealth
preservation. All these influence, combined in various ways, create a strong preference for
using gold as an investment asset; they continue to shape Indian household investments.

Emergence of New Investment Options in Gold:-

This investment medium, gold, has been considered to be at the top choice of Indians as a
result of cultural importance, high liquidity, and being an antidote to inflationary and
uncertainty regarding the economic scenarios of India. However, nowadays, these traditional
sources of gold, including jewelry, coins, and bars, are becoming less relevant in the hands of
new innovation for investment media. These alternatives have made gold investment more
accessible, convenient, and secure for a wider range of investors, offering a modern approach
to gold ownership.

1. Sovereign Gold Bonds (SGBs)

The most significant development in gold investment in India has been the introduction of
Sovereign Gold Bonds (SGBs) by the Government of India. Launched in 2015, these bonds
allow investors to buy gold in a paper form. The bonds are denominated in grams of gold.
SGBs offer a very attractive alternative to physical gold as they yield returns in the form of

13
both price appreciation and interest payments, at 2.5% per annum. They are also government-
backed, making them a low-risk option compared to other forms of gold investment. SGBs
also enjoy tax exemption on capital gains if held till maturity, which makes them even more
attractive.

2. Gold Exchange-Traded Funds (ETFs)

Gold ETFs have become a very popular investment in India as they offer the ease and cost-
effectiveness of investing in gold compared to holding it physically. It is possible to buy and
sell gold in the same way as stocks on the stock exchange. An investment in a gold ETF gives
an investor exposure to the price of gold without having to buy and store physical gold. Gold
ETFs are highly liquid, easily tradable, and come with lower costs compared to owning
physical gold. The transparency and flexibility of these products have made them particularly
attractive to institutional investors and those looking for a hassle-free investment in gold.

3. Digital Gold
The growth of fintech platforms and digital payment systems has made digital gold a popular
investment option in India. Digital gold allows investors to buy small amounts of gold
through online platforms without the need for physical storage. The gold is stored in a secure
vault on behalf of the investor, and it can be redeemed in the form of physical gold or sold
online. Digital gold has brought gold investing within the reach of many who would
otherwise be unable to invest large sums in physical gold. Access is easy, there are no set
minimum requirements for investment, and one can trade gold in real-time, opening up the
investor base significantly.

4. Gold Mutual Funds

A novel way for one to invest in gold is through gold mutual funds. Instead, these funds
invest in gold-related assets, for example, the shares of companies mining gold or gold ETFs.
Gold mutual funds offer a diversified exposure to the gold sector, and professional fund
managers manage them, making it suitable for people who are looking for passive investment
opportunities. In addition, they come with the benefit of diversification as the gold
investment fund may invest in a variety of gold along with other allied products.

5. Gold Accumulation Plans (GAPs)

Several banks and jewellers are providing Gold Accumulation Plans. It allows one to buy
gold in small regular installments over time. The accumulated gold can be surrendered later
for gold coins or ornaments. GAPs is the easiest and disciplined way that allows individuals
to invest in gold without having to commit a lot at once. Such plans are most popular among
individuals who wish to invest in gold incrementally, especially for major life events such as
weddings.

6. Gold Derivatives and Futures Contracts

Gold derivatives, which include futures contracts and options, enable investors to speculate
on the future price of gold without holding physical gold. The financial instruments are
traded on commodities exchanges and offer the sophisticated investor a chance to make
money off the price changes in gold. Although gold derivatives offer high leverage, they are
more suitable for experienced traders due to their complexity and higher risk.

SWOT analysis of gold investment :-

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Gold has been a favorite investment choice at all times. Let us analyze its Strengths,
Weaknesses, Opportunities, and Threats simply.

1. Strengths (Why Gold is a Good Investment?)

 Safe Haven – During an unstable economy, gold retains its value and is a safe
investment.
 Inflation Protection – When prices of commodities increase, gold tends to follow suit,
thus serving as a good inflation hedge.
 High Liquidity – You can quickly sell gold anywhere in the world.
 Universal Value – Unlike real estate or stocks, gold is worth something everywhere,
regardless of the nation.

2. Weaknesses (The Negatives of Investing in Gold)

 No Passive Income – Gold does not provide dividends or rent like stocks or real
property. It simply sits until you dispose of it.
 Storage and Security Concerns – Physical gold must be securely stored, which can be
expensive.
 Price Volatility – Prices for gold rise and fall, so investors who invest for the short
term can lose money.
 Making Charges in Jewelry – When you purchase gold jewelry, making charges cut
into your profit while selling.

3. Opportunities (What Makes Gold Investment Exciting?)

 Increasing Demand – India and China have an enormous demand for gold, and that
can drive prices higher.
 Gold-Backed Investment Alternatives – You don't necessarily need to purchase
physical gold. Digital gold, ETFs, and gold bonds are now an option.
 Central Bank Reserves – Governments purchase gold to stabilize their economies,
raising its demand.

4. Threats (Risks Involved in Gold Investment)

 Government Regulations – Governments in some nations levy excessive taxes or put

restrictions on gold trading.
 Better Investment Alternatives – Stocks, mutual funds, and real estate may provide
greater returns in the long term.
 Market Speculation – Unexpected price fluctuations caused by international
happenings can bring about uncertainty.
 Counterfeit Gold – Counterfeit gold in the market can pose a threat to unsuspecting
buyers.

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Gold is a good investment for stability, but it comes with risks. If you're seeking a long-term
safe investment, gold is excellent. But if you're seeking regular income or high returns, you
may need to look at other investments as well.

Review of Literature

16
Ritu and Ankur affirm that besides its increased utilization as a store of value, gold has
emerged as an important alternative asset class with benefits for investors. The prices of gold
and other alternative assets such as commodities increase when the yields on bonds, equities,
and real estate fail to adequately compensate for the risk and the rate of inflation.

Demand for Indian gold jewelry is, at times, sensitive to variations in the metal's price despite
other factors of culture, decoration, and others playing a role in gold jewelry buying, reports
Nigel Desebrock . Gold jewelry also has an investment role. His assertion is that it is archaic
to assume gold jewelry as something to possess for "adornment" and "investment." (Ritu and
ankur, 2022).

Jewelry uses half of the newly produced gold of the world, followed by investment at 40%
and industrial at 10%, as stated by Soos, Andy . Investors cannot avoid risks, but they can
minimize the risk by investing their money in safe assets to earn a moderate return. Most of
the investors in Coimbatore city prefer bank deposits, followed by gold and silver
investments.

As per Worstall, Tim , gold is not the most lucrative investment, it does not return a
consistent return, and it is bad for the economy as a whole (Avinash Totlani, 2019).

The literature on gold as an investment is rich and diverse, a testament to its important
position in financial markets over the centuries. Gold has been a central theme in scholarly
research since the late 1960s when the price of gold was permitted to float freely, prompting
greater examination of the determinants of its value. There have been many studies that have
examined the working mechanics of gold markets, such as the little-known leasing market,
which is fundamental to the supply dynamics of gold. These studies have continuously
investigated physical gold demand and supply and looked into the economics of gold
production and mining. Researchers have also examined the investment attributes of gold and
highlighted its role as a safe-haven asset and hedge against inflation and currency
fluctuations. Gold-macroeconomic variables such as interest rates interaction has also been
another key area of research, elucidating gold and its connection to economic uncertainty.
Recent research is starting to question market efficiency along with the occurrence of bubbles
within the gold market, adding more knowledge to understanding its behavioral forces. Such
growth in academic interest can be seen in the rising number of peer-reviewed articles,
highlighting the demand for inclusive surveys that collate existing literature. The present
review attempts to summarize the extensive literature on gold, situating its historical
importance and current significance as an investment, along with acting as a seminal
reference for upcoming research activities (Fergal A. O'connor, 2015).

Gold has also been an important part of Indian culture for many centuries, used as a sign of
wealth and prosperity as well as being a favorite investment for its liquidity and use as a
hedge against inflation. A correlation between the demand for gold and inflation is identified
in studies, with the World Gold Council (2017) reporting that every 1% increase in inflation

17
can increase demand for gold by 2.6%. Investors are confronted with inflation risk, which
erodes actual returns, and gold becomes a preferred hedging asset in portfolio management.
Techniques such as Johansen's cointegration method and vector error correction models
(VECM) establish long-run equilibrium between gold prices and inflation measures such as
the Consumer Price Index (CPI), reflecting long-run causality irrespective of short-run
dynamics failing to reveal any such relationship. Current trends point to the distinctive
market of India, marked by heterogeneous buying motivations and persistent escalation of
gold prices, and reaffirm its significance as an inflation hedge. The implications of such
results are far-reaching for various stakeholders, such as retail investors and financial
planners, who increasingly advise gold in investment plans. This review of the literature
highlights the necessity for further investigation of gold's relationship with inflation in an
Indian context and offers a starting point for analyzing its continued relevance in the world of
investment (Narindra Pal Singh, 2018).

The COVID-19 pandemic caused a seismic shift in the investment patterns of the world, with
India witnessing a dramatic change. While there was a wide variety of investment avenues,
including equities, real estate, and government securities, one striking trend was visible: an
increased preference for gold among Indian investors. The trend is multi-dimensional, with
both cultural worship and financial wisdom underlying it. Gold's image as a safe-haven asset
and effectiveness as a hedge against inflation have gone far to make it attractive. Also, India
being one of the world's greatest consumers of gold has added a greater local investment
stature.

Previous studies have examined the complex nexus between gold price volatility and investor
sentiment during the pandemic period. The general argument is that the deeply entrenched
cultural and emotional nature of gold has strengthened its position as a cornerstone asset in
Indian investment portfolios (Dr. Rajendra Kumar Sinha,). This conclusion points to the
timeless appeal of gold as an instrument of investment with a tangible and emotional
connotation, especially when economic times are uncertain (Mrs. Prathibha Vikram, 2022).

The paper addresses how financial variables influence investment choices. Financial
variables such as cash flow and cash holdings are significant in determining investment. Two
reasons, primarily, might make financial variables significant. To begin with, they might
harbor information regarding upcoming returns to capital. Secondly, they might encapsulate
the overall financial position of the firm and can influence investment under financial market
imperfections. The authors create a novel empirical model for detecting and measuring the
effect of financial variables on investment decisions. They find from their results that
investment responds both to fundamental and financial variables. They also identify that
financial variables have a marginal role in identifying the investment decisions of bond-rated
companies, while they have significant effects on non-bond-rated companies. The authors
contend that through coupling exact measures of marginal product of capital (MPK) with
sophisticated statistical methods, they are able to better grasp the ways in which financial
considerations affect investment. They utilize two approaches towards examining this nexus.
The first approach isolates cash flow shocks from contemporaneous profitability. Results
indicate that these shocks have a strong effect on investment and are negatively predictive of
future profitability, indicating that the influence of cash flow goes beyond that of a predictor
of future returns. The second approach includes financial constraints in a statistical model.
This model indicates that investment is not only influenced by anticipated future profits but

18
also by the expected value of internal funds. Empirical evidence supports the significance of
both variables in determining investment. The study puts the increase in the total effect of
economic shocks on investment due to financial factors at 25% for the typical firm. This
impact is stronger, however, for small firms and firms that are not able to access bond
markets (Gross).

Mittal noted that investors are more likely to be "normal" than "rational" in making
investment choices and proposed four prevalent investment personalities.

Gender is also a major factor that determines gold purchasing behavior, which was
established by Sujatha and Kumaresan and Kaynak and Kara.

Mukhi examined consumer behavior towards investment and concluded that national Savings
Scheme is more popular for its ease of use.

Pati and Shome argued that investors would rather have safer avenues than high-yielding but
risky investments (Dr. B. S. Hundal, 2013).

Lahoti, J. H., the motive of the research is. To research the variables that affect the
investment decision in gold. To research about the different options open to investors during
gold investment.

To find out the reasons why one should not invest in gold. To be aware of the options of risk
in physical gold and other gold investment opportunities. The methods applied in this study
are descriptive and analytical in nature. The data necessary for the present study were
gathered both from the primary as well as from the secondary source. The major data had
been obtained from the survey respondents in the study area in person by administering a
well-drafted interview schedule. The secondary data are sourced from magazines, journals,
articles, newspapers, booklets, etc. The study provides improved insight into investor's
attitude and awareness towards gold investment choice and indicates where presently
physical gold's place stands among other gold investment tools Investor's undertake an
information search and market analysis prior to making the gold investment choice.

Paranjpye, R., the objective is to analyse different modes of investment in gold and assess the
attitude of consumers for investing in gold in India. In this study, primary and secondary data
have been gathered. For primary data, a questionnaire was designed to know the age, gender,
saving ratio, knowledge about gold funds, and investment reason. For the analysis of the data,
several tools are utilized, including sums, percentages, and charts for the quantitative analysis
of the data. The following study concludes that gold is a valuable commodity, being most in
demand as an investment and it has emotional values in India, Several alternatives in gold
investment are physical gold, gold ETFs and e-gold, and government also announced several
schemes like gold monetization scheme, gold sovereign bonds, etc (Lahoti, 2023) .

P. K. Mishra, J. R Das, S. K. Mishra The American Journal of Scientific Research, Gold

price volatility and stock market returns in India," attempts to analyze the casusality relation
that may run between domestic gold prices and stock market returns in India. The study takes
into consideration the domestic gold prices and stock market returns based on the BSE 100
index, investigates the Granger causality in the vector error correction model for the period
January 1991 to December 2009, and finds that the gold prices Granger-cause stock market

19
returns and stock market returns also Granger-cause the gold prices in India during the
sample period.

Rakesh Kumar Sharma Journal of International Economics, Volume 7, issue 1, Forecasting

gold prices with Box Jenkins autoregressive integrated moving average method".

This paper attempts to develop a forecasting model for gold prices in India. The monthly
sample data of gold prices were taken from 1 January 1995 to 15 June 2014 and used to build
the model. The unit root test of Augmented Dickey Fuller II and Philip Person has been used
to test the gold price series as stationary or non-stationary. It is observed that series were
stationary at first difference. Box Jenkins methodology has been used for developing a
forecasting model of gold price in India. ARIMA (3, 1, and 3) is best suitable to predict the
gold price in India (Mishra &Das &Mishra & Shobha, 2017).

The research by Dr. A. Selvaraj and Sudha K.S. aims to explore ways of investing in gold
and investment risk balancing strategies during the COVID-19 pandemic. Gold has been a
popular investment option in India for a long time due to a number of reasons, such as its
religious and cultural importance and its historical image as a store of value. This preference
for gold is reflected in the considerable amount of gold owned by Indian citizens, with many
considering it a smart investment option that provides both security and wealth preservation.

Against the background of global financial volatility caused by the COVID-19 pandemic, the
research places emphasis on the changing nature of gold as an investment option. During the
pandemic, there was a period of low interest rates and dipping world economic growth. The
resultant economic trends saw most investors seek refuge in gold as a hedge against market
volatility.

The authors' study, a gold price trend analysis for the last decade, validates the assumption
that gold continues to be an enduring asset amid crisis. A clear trend toward increased gold
prices is shown with an impressive jump of 154.4% compared to last year. Such growth
further lends credibility to gold's attractiveness as an investment source amid uncertainty.

In their conclusion, Dr. Selvaraj and Sudha K.S. advise investors to utilize gold exchange
traded funds (ETFs) or gold savings funds as the best investment vehicles in the gold market.
Of all the available investment options in gold, these financial instruments are seen as the
most effective and feasible for risk management and returns assurance, especially given the
prevailing economic situation worsened by the pandemic.

In short, the research reaffirms that gold, and notably in the guise of savings funds or ETFs, is
still a wise investment option in times of economic turmoil, as was witnessed with the
COVID-19 crisis. The findings highlighted point toward the long-term growth prospects of
gold as well as its role in acting as a hedge in uncertain times of finance (K.S, 2020).

Indian women have gained economic independence and are becoming increasingly aware of
the importance of converting savings into investments. With its cultural, economic, and
security importance, Indian women continue to prefer gold as an investment vehicle. In
periods of economic uncertainty, it is a safe asset, a wealth store, and an inflation hedge.
While gold was initially used primarily as a medium of long-term savings, the rise in its value
has also made it one of the favorite choices for speculative investments.

20
Gold has been a treasured asset for Indian women, particularly housewives, who regard it as a
way to build wealth and an insurance policy against future economic uncertainty. Since gold
is connected with security and status, many women continue to prefer physical gold,
particularly jewelry, despite more contemporary investment vehicles such as government
schemes and gold exchange-traded funds (ETFs).

Based on studies, women's awareness of gold investment options is not significantly affected
by age, marital status, or household income. Nevertheless, their satisfaction with investments
depends on their profession. Professional women are generally more satisfied with their gold
holdings compared to non-professionals.

Even though the government has launched schemes like the Digital Gold Scheme and Gold
Monetization Scheme, which provide advantages such as liquidity and convenience of
storage, the demand for physical gold continues. This reflects the necessity for additional
awareness campaigns to inform women about the benefits of paper gold, especially in rural
and semi-urban regions, to diversify their investment portfolios (K.S.Sudha, 2021).

Against the backdrop of post-COVID-19 economic rebound, this research explores the
determinants of Indonesian consumers' willingness to invest in gold installments. During the
second quarter of 2023, Indonesia's GDP grew by 5.17% amid global economic slowdowns,
while inflation remained in check at 3.52% (Kemenko Perekonomian RI, 2023). After the
pandemic, economic stability led numerous Indonesians to seek safer investment avenues,
and gold was a top choice. Price, promotion, and expected return, based on studies, had the
most impact on customers' impressions of gold installments. However, investment plans were
not strongly affected by security, risk, or ease of use. This finding is supported by the Model
of Buyer Behaviour by Kotler and Armstrong (2018), which highlights the way external
factors affect consumer behavior. The research focuses on the way strong gold is as a low-
risk investment and argues that price and advertising strategy are determinant in influencing
customer choice. To gain a better understanding of these investment patterns, future research
could explore regional and cultural differences (Ibnu Sulaiman, 2023).

Specifically because the United States cut interest rates to nearly zero in response to the
COVID-19 pandemic, recent increases in gold prices have caught attention. Gold prices
might have been influenced by it, but not everything is related to this factor. As indicated by
research into consumer gold investment preferences (Gold-i), rising income and inflation
were the driving factors, while interest rates played no identifiable role. Inflation and income
growth were found to have a larger direct effect on gold investment decisions, even as
interest rates in general were tied to the US dollar and investment demand. The findings
indicate a need for further research into the extent to which external economic conditions
affect gold investment decisions and yield useful insights into consumer behavior in gold
investing, particularly in the context of economic crises such as the pandemic (Johan, 2020).

Gold has long been seen as a valuable financial asset and is still important to the world
economy. After the US dollar and the euro, it is the third most traded commodity worldwide.
Because of its perceived security and cultural significance, gold is a popular investment in
India. It is seen as a safety net during times of financial turmoil and as a hedge against
inflation. The importance of gold in the country's financial system is demonstrated by the
Reserve Bank of India's (RBI) recent large increase in gold reserves. Acknowledging this

21
tendency, Indian financial institutions have further integrated gold into the investment
landscape by introducing gold savings accounts (Mr. RAMRAJ, 2023).

According to a survey of Indian financial professionals, gold is considered a vital reserve

asset for the RBI as well as a safe haven. According to the survey, gold is seen favourably,
and experts emphasised the need for more gold transactions and a wider range of gold
products in the banking industry. Gold’s strategic role as a reserve asset is particularly
significant during economic uncertainties, such as recessions or geopolitical tensions.
Additionally, the survey observed that women investors in India tend to invest more in gold
than males, showing a gender-based preference.

In India, gold continues to be a vital financial asset for both individual investors and the
nation's overall economic strategy. Its continued importance is highlighted by its dual
function as a central bank reserve asset and a personal investment, particularly during
economic downturns. The growing popularity of gold savings accounts and its wider
institutional use indicate that gold will continue to be a central element in India's financial
market (Mr. RAMRAJ, 2023).

Gold is still the most popular investment choice in Kerala, even though mutual funds have
recently produced superior returns. Research suggests that cultural customs, the belief that
gold is safe, and a lack of knowledge about mutual fund operations are the main causes of
this preference). Keralan households frequently choose gold because it is regarded as a safe,
tangible asset that may be used as a hedge against uncertainty Conversely, even if mutual
funds yield greater returns, investor confidence has been eroded by their complex design and
erratic performance. According to research, a lot of investors are hesitant to invest since they
don't know enough about mutual funds (T.Radhakrishnan, 2017).

While mutual funds offer higher potential returns, the strong cultural affinity for gold and the
lack of financial literacy regarding mutual funds continue to shape investment decisions in
Kerala. To address this, experts recommend providing better commissions to Asset
Management Companies (AMCs) to improve the distribution and promotion of mutual funds
Additionally, government initiatives like the Rajiv Gandhi Equity Savings Scheme (RGESS)
could be more effectively communicated to boost awareness and encourage mutual fund
investments.

The study highlights how the interest for gold bullion is increasing amid a volatile market as
a prime investment avenue. Several investment avenues are available to investors in India,
but their ability to arrive at the best instrument based on risk appetite, returns, and liquidity is
put to test every time. Gold stands out as something timeless and incredibly valuable, where
safety and good returns are valued. This paper finds that the rising demand for gold in forms
such as coins, bars, and ornaments leaves limited awareness regarding the availability of gold
bullion as an investment vehicle.

The study says that the effort for promotion concerning the education of and attraction to
gold bullion is not great enough, demanding strategic measures concerning boosting
awareness to levels of greater satisfaction. Whereas the innovative and alternative methods
include exchange-traded funds and accounts of gold stored online, conventional investment in
the metal remains favorite for most. This draws a conclusion that gold bullion, being
available to all social classes, holds much potential to become a mainstream investment if the

22
right initiatives are undertaken to heighten public awareness and trust (Dr.
K.K.Ramachandran, 2014).

Gold has long been a part of Indian investors' lives, both as a precious metal and a cultural
and symbolic investment. This study examines the drivers behind Indian retail investors'
buying decisions in gold in physical and paper modes—mutual funds and ETFs. The primary
characteristics spurring gold buying are simplicity in transactions, high liquidity, and its use
as a reliable hedge against inflationary risks and economic risk. Physical gold is the
undisputed favorite even though new investment products exist, because of cultural status and
perceived safety.

The research concludes that retail investors' fondness for gold is mainly due to negligible
procedural aspects involved at the time of investment, simple resale, and the availability of
gold-based loans. All these factors in addition to the belief that gold promises good returns as
well as tax benefits have contributed to strengthening the popularity of gold as a safe and
profitable investment route (Arekar, 2014).

Gold has always remained the most preferred investment choice for Indian investors because
of its cultural, emotional, and financial relevance. The current paper examines the trends in
gold investment during the COVID-19 pandemic and recognizes how economic uncertainty
influenced behavior among individual investors. As income groups were analyzed, the
research informs that gold proved to be an enduring and trusted asset during the crisis. The
research goes further into the shifts in investment choices during the pandemic and its "new
normal" period, when gold emerged as the greatest portfolio savior amid the tough times.

Gold's inherent value, stability, and high liquidity made it the most appealing to investors
looking for a haven during the crisis. In spite of the presence of several investment options
like bank deposits, real estate, and equities, gold remained the top choice in portfolios as it
was believed to hedge risk and inflation. In general, the study opines that gold investments
not only held up but also gained ground during the pandemic, highlighting its significance as
an integral part of an Indian investor's portfolio (Mrs. Prathibha Vikram D. R., 2022).

23
 OBJECTIVES

24
(1) To analyse the general awareness and knowledge about gold as an investment.

(2) To investigate the motivating factors and hurdles behind investing in gold.

(3) To investigate the different forms of gold investment preferred by individuals.

(4) To investigate the demographic differences in perception of gold investment.

(5) To predict the future of gold as an investment asset.

25
 RESEARCH
METHODOLOGY

26
27
DEFINITION:

Research methodology is a systematic framework that directs the entire research process. It
refers to the concepts, techniques, and procedures used to design, carry out, and evaluate a
research study. The methodology ensures that the study is conducted in a scientific manner,
resulting in results that are reliable, valid, and accurate. Simply said, research is the
systematic planning, collection, analysis, and reporting of data and results pertinent to a
specific problem or change that may occur in an industry or market.

RESEARCH PROCESS:

The research process is a methodical method for carrying out a study, investigating a topic, or
gathering information. It includes defining a research problem, examining existing literature,
developing hypotheses or research questions, creating a technique, gathering and analyzing
data, and drawing findings. This procedure assures that the research is organized, logical, and
reliable.

1.Sample Design:

Defining the target population for our research, the target population includes following
respondents:

Age group
18-30 years
30-40 years
40-50 years
50-60 years
60 above

Gender
Male
Female
Others
Total

Income

28
 Below ₹2,50,000
₹2,50,000 - ₹5,00,000
₹5,00,000 - ₹7,50,000
₹7,50,000 - ₹10,00,000
Above ₹10,00,000

Level of education
High school or below
Undergraduate Degree
Postgraduate Degree
Professional or Doctoral
degree

Occupation
Student
Professional
Businessman
Salaried Person
Retired
Homemaker

2.Sampling Techniques:

We have collected data through a structured questionnaire, which was distributed via Google
Forms. The survey was specifically restricted to respondents from Ahmedabad city to ensure
that the insights gathered align with the local population's perception. This approach allowed
us to obtain relevant and focused responses, providing a clearer understanding of the target
audience's views, preferences, and behavior patterns regarding gold as an investment.

3.Sample Size:-

To ensure diversity, a sample of 302 individuals (188 males, 112 females, and two others) is
picked from universities, businesses, and social groups using stratified random selection
techniques.

29
4.Data Collections:-

We employed a non-probability sample technique, specifically convenience sampling, to

gather information about people's attitudes toward investing in gold. The questionnaire was
produced with Google Forms and distributed across online platforms such as social media
and messaging applications to ensure that respondents received it immediately. Because
participants self-selected to answer and were easily accessible, this method aided in the fast
collection of replies, but it may have limits in representing the total community.

5.Research Method :-

One Method is used:

Survey Questionnaire:
Linkert Scale items (Agree to Strongly Disagree) is used to measure

(1) To analyse the general awareness and knowledge about gold as an investment.
(2) To investigate the motivating factors and hurdles behind investing in gold.
(3) To investigate the different forms of gold investment preferred by individuals.
(4) To investigate the demographic differences in perception of gold investment.
(5) To predict the future of gold as an investment asset.

30
 Data analysis

31
1] Age group?

Age group Frequency percentage

18-30 years 195 64.6 %
30-40 years 59 19.5 %
40-50 years 36 11.9 %
50-60 years 10 3.3 %
60 above 2 0.7 %
Total 302 100 %

Interpretation :-

 The survey received a total of 302 responses, with the majority of respondents falling
in the 18-30 years category (64.6%). This indicates that a significant portion of the
respondents are young individuals, likely students or early-stage professionals.

 The 30-40 years age group represents 19.5% of the sample, followed by the 40-50
years age group with 11.9%. These two groups are typically in their prime earning
years and may have a more defined investment strategy, including gold as an asset.

 The 50-60 years category contributes 3.3%, while the 60+ years age group forms
only 0.7% of the total respondents. This suggests that older individuals, who may
have already made their long-term investment decisions, are less represented in the
survey.

32
2] What is your Gender?

Gender Frequency Percentage

Male 188 62.3%
Female 112 37.1 %
Others 2 0.7 %
Total 302 100 %

Interpretation :-

The survey comprises 302 respondents, categorized by gender as follows:

 Male: 188 respondents (62.3%)

 Female: 112 respondents (37.1%)
 Others: 2 respondents (0.7%)
 With 62.3% of the respondents being male, the data suggests that men might be more
active in financial decision-making, including gold investments.
 The 37.1% female participation is noteworthy, as gold has historically been
considered a preferred asset for women, especially in the form of jewelry.

33
3] What is your annual income?

Income Frequency percentage

Below ₹2,50,000 111 36.8%
₹2,50,000 - ₹5,00,000 55 18.2%
₹5,00,000 - ₹7,50,000 52 17.2%
₹7,50,000 - ₹10,00,000 40 13.2%
Above ₹10,00,000 44 14.6%
Total 302 100 %

Interpretation :-

By observing the pie chart we can conclude that out of 302 respondents :-

 111(36.8%) earns below ₹2,50,000 Annually.

 55(18.2%) earns ₹2,50,000-₹5,00,000 Annually.
 55(18.2%) earns ₹2,50,000-₹5,00,000 Annually.
 52(17.2%) earns ₹5,00,000 - ₹7,50,000 Annually.
 40(13.2%) earns ₹7,50,000 - ₹10,00,000 Annually.
 44(14.6%) earns Above ₹10,00,000 Annually.

34
4] What is your higher level of education?

Level of education Frequency Percentage

High school or below 32 10.6%
Undergraduate Degree 168 55.6%
Postgraduate Degree 82 27.2%
Professional or Doctoral 20 6.6%
degree
Total 302 100%

Interpretation :-

By observing the pie chart we can conclude that out of 302 respondents :-

 32(10.6%) are from high school or below

 168(55.6%) have undergraduate degree
 82(27.2%) have postgraduate degree
 20(6.6%) have professional or Doctoral degree.

35
5] What is your current occupation?

Occupation Frequency percentage

Student 136 45%
Professional 37 12.3%
Businessman 50 16.6%
Salaried Person 58 19.2%
Retired 5 1.7%
Homemaker 16 5.3%
Total 302 100%

Interpretation :-

Students 136 (45%)

 As future investors, students may see gold as a long-term savings asset, but their
purchasing power is limited.

Professionals 37 (12.3%)

 Professionals may perceive gold as a stable investment but prioritize liquid and
high-return options like stocks or mutual funds.

Businessmen 50 (16.6%)

 Business owners often view gold as a wealth-preserving asset and a hedge against
market fluctuations.

Salaried Persons 58 (19.2%)

 This group may see gold as a secure and long-term investment for financial
stability.

36
Retired Individuals 5 (1.7%)

 Retirees might consider gold as a low-risk, secure asset to preserve their savings.

Homemakers 16 (5.3%)

 Homemakers often associate gold with financial security and family wealth.
 Their investment choices may lean toward gold jewelry, household gold savings, or
gold loan schemes.

37
6] Please rate the motivating factors for investing in gold on a scale from
1 to 5 (where 1 represents "Lowest" and 5 represents
"Highest.")

Motivating 1 Rating 2 Rating 3 Rating 4 Rating 5 Rating Total

Factor (Blue) (Red) (orange) (green) (purple) Response
Good return 32 17 41 97 115 302
Inflation Hedge 12 40 79 86 85 302
High Quality 19 26 78 88 91 302
Culture and 23 28 60 105 86 302
emotional value
Capital 18 27 78 101 78 302
Appreciation
Safe as compare 17 21 61 92 111 302
to other
Investment

Interpretation :-

1. Good Returns (Highest Rating: 115 responses)

 A majority (115 responses) rated good returns as the

strongest factor, making it the most important
motivation for investing in gold.
 Investors consider gold a profitable asset, especially during
economic uncertainties.

2. Inflation Hedge (Highest Rating: 85 responses)

 A significant portion (86 responses) gave a rating of 4,

showing that gold is perceived as an effective hedge
against inflation.
 Investors trust gold to preserve purchasing power over
time.

38
 3. High Liquidity (Highest Rating: 91 responses)

 Many investors (88 responses) gave a rating of 4, indicating

that gold's liquidity is a major attraction.
 This shows that investors value gold for easy conversion into
cash when needed.

4. Cultural and Emotional Value (Highest Rating: 105

responses)

 Cultural and emotional value received a high rating (4 or 5)

from 191 respondents, emphasizing tradition and
personal significance in gold investments.
 This factor is particularly important in countries where gold is
linked to festivals, weddings, and inheritance.

5. Capital Appreciation (Highest Rating: 78 responses)

 Many respondents (101) gave a rating of 4, indicating that

investors recognize gold’s long-term price growth
potential.
 While not the top reason, capital appreciation remains an
important factor.

6. Safe Compared to Other Investments (Highest Rating: 111

responses)

 A strong 111 respondents rated this factor as 5, showing

that safety is a key concern.
 Investors trust gold as a stable and risk-free asset
compared to volatile markets.

39
7] Express your opinion. How would you rate the following hurdles or
problems in investing in gold? (1- Lowest , 5 - Highest)

Hurdles in 1 Rating 2 Rating 3 Rating 4 Rating 5 Rating Total

investing in (Blue) (Red) (orange) (green) (purple) Response
gold
High storage 38 37 88 75 64 302
and security
costs
Price volatility 22 57 94 74 55 302
of Gold
Lack of regular 17 48 116 69 52 302
income from
gold investment
High 18 35 102 89 58 302
Transaction and
making charges
for physical
gold
Limited tax 18 33 120 73 58 302
benefits
compared to
other investment
options
Money being 26 42 106 80 48 302
blocked for
long-term
periods
Complexity of 20 40 113 71 58 302
digital gold or

40
 gold ETFs for
beginners

Interpretation :-

1. High Storage and Security Costs

 38 people (1 rating) believe storage costs are not a big issue.

 37 people (2 rating) think it's a minor problem.
 88 people (3 rating) feel it's a moderate concern.
 75 people (4 rating) say storage is a significant issue.
 64 people (5 rating) consider it a major problem.

2. Price Volatility of Gold

 22 people (1 rating) don’t see price changes as a big problem.

 57 people (2 rating) feel it has low impact.
 94 people (3 rating) think price changes are somewhat concerning.
 74 people (4 rating) find it a serious problem.
 55 people (5 rating) believe price fluctuations are a major hurdle.

3. Lack of Regular Income from Gold Investment

 17 people (1 rating) think lack of regular income is not a problem.

 48 people (2 rating) feel it has low impact.
 116 people (3 rating) consider it a moderate issue.
 69 people (4 rating) say it is a significant problem.
 52 people (5 rating) see it as a major hurdle.

4. High Transaction and Making Charges for Physical Gold

 18 people (1 rating) don’t find charges to be a big issue.

 35 people (2 rating) feel charges are manageable.
 102 people (3 rating) think they are a moderate concern.
 89 people (4 rating) believe they reduce gold’s profitability.
 58 people (5 rating) consider charges a major hurdle.

5. Limited Tax Benefits Compared to Other Investment Options

 18 people (1 rating) don’t see tax benefits as an issue.

 33 people (2 rating) think tax limitations are not a big deal.
 120 people (3 rating) feel gold’s tax disadvantages are moderate.
 73 people (4 rating) see tax benefits as a significant issue.
 58 people (5 rating) believe tax policies make gold less attractive.

41
6. Money Being Blocked for Long-Term Periods

 26 people (1 rating) think gold’s long-term nature is not a problem.

 42 people (2 rating) feel it has low impact.
 106 people (3 rating) consider it a moderate issue.
 80 people (4 rating) believe it makes gold less attractive.
 48 people (5 rating) see this as a major hurdle.

7. Complexity of Digital Gold or Gold ETFs for Beginners

 20 people (1 rating) don’t find digital gold difficult.

 40 people (2 rating) feel it is somewhat easy to understand.
 113 people (3 rating) think it has moderate complexity.
 71 people (4 rating) believe it is challenging for beginners.
 58 people (5 rating) consider it very complicated.

42
8] How would you rate the following forms of gold investment? (1 -
Lowest, 5 - Highest)

Forms of gold 1 Rating 2 Rating 3 Rating 4 Rating 5 Rating Total

investment (Blue) (Red) (orange) (green) (purple) Response
Physical 29 15 63 66 129 302
Gold(Jwelery,coin,bars)
Sovereign Gold 15 32 92 86 77 302
bonds(SGBs)
Gold exchange-Traded 18 32 92 84 76 302
Fund(ETFs)
Gold mutual funds 15 39 77 95 76 302
Digital Gold 21 33 102 81 65 302
Gold mining stocks 33 37 101 72 59 302
Gold saving 27 29 90 89 67 302
scheme(offered by
jewelers

Interpretation :-

1. Physical Gold (Jewelry, Coins, Bars)

 29 people (1 rating) see it as the least attractive option.

 15 people (2 rating) feel it is not very beneficial.
 63 people (3 rating) consider it a moderate investment choice.
 66 people (4 rating) find it a good investment.
 129 people (5 rating) think it is the best form of gold investment.

43
2. Sovereign Gold Bonds (SGBs)

 15 people (1 rating) find SGBs not useful.

 32 people (2 rating) feel they are a weak investment.
 92 people (3 rating) consider them moderately beneficial.
 86 people (4 rating) say they are a strong option.
 77 people (5 rating) see SGBs as a highly favorable investment.

3. Gold Exchange-Traded Funds (ETFs)

 18 people (1 rating) don’t find ETFs valuable.

 32 people (2 rating) think they are not very useful.
 92 people (3 rating) consider them a decent option.
 84 people (4 rating) believe they are a good alternative.
 76 people (5 rating) rate them as a strong investment choice.

4. Gold Mutual Funds

 15 people (1 rating) think gold mutual funds are not attractive.

 39 people (2 rating) feel they have low benefits.
 77 people (3 rating) see them as a neutral option.
 95 people (4 rating) consider them a good investment.
 76 people (5 rating) find them highly beneficial.

5. Digital Gold

 21 people (1 rating) don’t trust digital gold.

 33 people (2 rating) feel it has low advantages.
 102 people (3 rating) see it as a moderately good option.
 81 people (4 rating) think it’s a strong investment.
 65 people (5 rating) rate it highly.

6. Gold Mining Stocks

 33 people (1 rating) don’t see value in gold mining stocks.

 37 people (2 rating) believe they have low potential.
 101 people (3 rating) consider them a moderate choice.
 72 people (4 rating) see them as a good investment.
 59 people (5 rating) think they are highly rewarding.

7. Gold Saving Schemes (Offered by Jewelers)

 27 people (1 rating) find them not attractive.

 29 people (2 rating) believe they have low benefits.
 90 people (3 rating) consider them a neutral option.
 89 people (4 rating) say they are a good scheme.
 67 people (5 rating) think they are highly beneficial.

44
9] Please indicate your level of agreement with the following statements
about gold investment by selecting one of the options: Strongly agree,
agree, neutral, disagree, or strongly disagree.

Statement Strongly Agree Neutral Disagree Strongly Total

agree Disagree Response
Gold is a safe 154 69 48 18 13 320
haven investment
during economic
uncertainty.
I believe gold has 81 139 49 18 15 302
a high potential
for long-term
appreciation.
Investing in gold 75 104 84 26 13 302
helps diversify
my investment
portfolio.
The price of gold 75 90 78 36 23 302
is more stable
compared to other
investment assets.
Gold is a good 76 86 91 32 17 302
hedge against
inflation.

45
I believe gold is a 81 74 85 40 22 302
better long-term
investment than
stocks or real
estate.

Interpretation :-
1. Gold is a safe haven investment during economic uncertainty.

 154 people (Strongly Agree) see gold as a reliable asset in crises.

 69 people (Agree) also support this belief.
 48 people (Neutral) feel uncertain about gold’s role.
 18 people (Disagree) don’t consider gold a safe investment.
 13 people (Strongly Disagree) think gold is not a stable asset.

2. I believe gold has a high potential for long-term appreciation.

 81 people (Strongly Agree) trust gold for long-term gains.

 139 people (Agree) also see good potential in gold’s value.
 49 people (Neutral) are unsure about gold’s growth prospects.
 18 people (Disagree) don’t believe in gold’s long-term appreciation.
 15 people (Strongly Disagree) think gold won’t generate high returns.

3. Investing in gold helps diversify my investment portfolio.

 75 people (Strongly Agree) value gold for diversification.

 104 people (Agree) also believe it reduces investment risk.
 84 people (Neutral) remain undecided.
 26 people (Disagree) don’t think gold enhances portfolio balance.
 13 people (Strongly Disagree) see no diversification benefits in gold.

4. The price of gold is more stable compared to other investment assets.

 75 people (Strongly Agree) believe gold prices are more stable.

 90 people (Agree) also consider gold less volatile than other assets.
 78 people (Neutral) are undecided on gold’s stability.
 36 people (Disagree) think gold prices fluctuate significantly.
 23 people (Strongly Disagree) see gold as highly unstable.

5. Gold is a good hedge against inflation.

 76 people (Strongly Agree) support gold as an inflation hedge.

 86 people (Agree) also find gold protective against inflation.
 91 people (Neutral) have mixed opinions.
 32 people (Disagree) think gold doesn’t effectively hedge inflation.
 17 people (Strongly Disagree) don’t see any inflation-protection benefits.

46
6. I believe gold is a better long-term investment than stocks or real
estate.

 81 people (Strongly Agree) prefer gold over stocks and real estate.
 74 people (Agree) also see gold as a better long-term asset.
 85 people (Neutral) remain undecided between gold, stocks, and real estate.
 40 people (Disagree) favor other investment options over gold.
 22 people (Strongly Disagree) think gold is not better than stocks or real estate.

10] Are you aware of e-gold investment as an option?

Aware or not Frequency percentage

Yes 205 67.9%
No 97 32.1%
Total 302 100%

Interpretation :-

 Out of 302 people 205(67.9%) are aware about e-gold investment.

 Out of 302 people 97(32.1%) are not aware about e-gold investment.

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11] If you are aware of e-gold, which platform do you prefer for investing
in e-gold?

Platform for gold Frequency Percentage

investment
Zerodha 59 19.7%
Groww 92 30.7%
Upstox 36 12%
Safegold 25 8.3%
MMTC-PAMP 5 1.7%
I am not aware about e-gold 83 27.7%
investment
Total 302 100%

Interpretation :-

By observing the pie chart we can conclude that out of 302 respondents :-

 59(19.7%) people are prefer Zerodha platform for investing in e-gold.

 92(30.7%) people are prefer Groww platform for investing in e-gold.
 36(12%) people are prefer upstox platform for investing in e-gold.
 25(8.3%) people are prefer Safegold platform for investing in e-gold.
 5(1.7%) people are prefer MMTC-PAMP platform for investing in e-gold.
 83(27.7%) people are not aware about e-gold investment.

48
12] Do you consider e-gold a better investment compared to traditional
gold (e.g., physical gold or gold ETFs)?

E-gold is a better Frequency Percentage

investment compared to
traditional gold
Yes, It’s More convenient 116 38.4%
No, I prefer traditional gold 95 31.5%
investment
I’m not sure 91 30.1%
Total 302 100%

Interpretation :-

By observing the pie chart we can conclude that out of 302 respondents :-

 116(38.4%) people consider that, e-gold investment is more convenient as compare to

traditional gold investment.
 95(31.5%) people prefer traditional gold investment.
 91(30.1%) people are not sure.

49
 The Chi-Square Test & Analysis and Interpretation

The Chi-Square test is a non-parametric statistical test used to determine whether there is a
significant association between two categorical variables. It compares the observed
frequencies in each category to the frequencies that would be expected if there were no
relationship between the variables. The test helps in evaluating whether any observed
difference between the expected and actual frequencies is due to chance or indicates a real
association. The formula for the Chi-Square statistic is:
Where:
• O = Observed frequency
• E = Expected frequency

If the p-value obtained from the Chi-Square test is less than the chosen significance level
(commonly 0.05), the null hypothesis is rejected, indicating that the variables are related.

In our study, we applied the Chi-Square test to understand the relationships between
demographic factors (such as gender, occupation, and income) and respondents’ perceptions
of E-Gold as a better long-term investment.

For gender, the Chi-Square analysis resulted in a p-value of 0.616, which is greater than 0.05.
This indicates that there is no significant relationship between gender and the perception of
E-Gold as a good long-term investment. Both males and females (and others) have similar
views, and gender does not play a differentiating role.

On the other hand, when analysing the relationship between occupation and the perception of
E-Gold, the Chi-Square value was 46.63 with a p-value of 0.001. This is highly significant,
meaning that the perception of E-Gold varies substantially based on occupation. People in
different professional categories — such as students, working professionals, business owners,
and homemakers — have differing levels of awareness, trust, and interest in E-Gold as a
long-term investment.

In this research, we used key demographic variables — gender, occupation, and income — to
study whether these characteristics influence financial perceptions and decisions. This
approach allowed us to:

 Identify if certain groups are more or less likely to consider E-Gold for investment.
 Understand how financial literacy and preferences might differ across age, gender,
income brackets, and professional backgrounds.
 Tailor financial education and marketing strategies to specific demographic segments
based on their investment awareness and tendencies.

50
By applying the Chi-Square test to different demographic variables, we were able to draw
meaningful insights into how socio-economic factors shape investment behaviour. These
results help in understanding consumer behaviour and can guide financial institutions,
advisors, and policymakers in designing targeted strategies to promote financial products like
E-Gold.

1.H0: There is no significant association between age and cultural value.

51
 H1: There is a significant association between age and cultural value.

Analysis:

52
The chi-square test was conducted to assess the relationship between age groups and cultural
values. The test result yielded a p-value of 0.008, which is significantly lower than the
conventional threshold of 0.05. This statistical result indicates that the null hypothesis —
which assumed no association between age and cultural values — can be rejected with
confidence. Therefore, there is strong evidence to conclude that age and cultural values are
not independent of each other. The crosstabulation analysis provided additional insights into
this relationship, showing clear patterns of variation in cultural value scores among different
age groups.

Interpretation:
The findings suggest that younger respondents, particularly those aged between 18 and 30,
tend to report higher cultural value scores compared to older individuals. This trend could
reflect generational shifts in exposure to diverse cultures, changing societal norms, and
differences in upbringing. Younger generations might have greater access to global content,
education, and intercultural experiences through digital media and travel, contributing to
more pronounced cultural value orientations. On the other hand, older age groups may hold
more traditional views and cultural values shaped by their historical and social environment.
Overall, the significant association highlights how cultural values evolve and differ across
age demographics, possibly influencing behaviors, preferences, and attitudes within the
population.

53
2. H0: Income level has no significant association with platform awareness.
H1: Income level has a significant association with platform awareness.

54
Analysis:
The chi-square test conducted to examine the association between income levels and
awareness of investment platforms yielded a p-value of 0.081. Since this p-value is greater
than the standard significance threshold of 0.05, the result indicates that there is no
statistically significant association between income levels and investment awareness when
considering categorical data in isolation. However, the linear-by-linear association test, which
specifically measures trends across ordered categories, produced a p-value of 0.003. This
result is highly significant, suggesting that while the association might not be strong across
all categories in a general sense, there is a clear and statistically significant linear trend. In
other words, as income increases, there is a consistent upward progression in investment
platform awareness among respondents.

Interpretation:
The presence of a significant linear-by-linear association indicates that income level plays a
vital role in shaping financial awareness and literacy. Higher-income respondents are more
likely to be aware of various investment platforms, possibly due to greater access to financial
resources, professional advice, and educational exposure. Individuals in higher income
brackets may also feel a stronger need to diversify and grow their wealth, motivating them to
seek out and learn about investment avenues. In contrast, lower-income groups may have
limited financial exposure or prioritize immediate financial needs over long-term investment
planning. This trend underlines the importance of income in influencing financial behavior
and suggests that targeted financial education efforts may be needed for lower-income
segments to bridge this awareness gap and promote inclusive financial literacy.

55
3. H0:There is no significant association between income level and consideration of E-Gold.
H1: There is a significant association between income level and consideration of E-Gold.

56
Analysis:
The Pearson Chi-Square test was conducted to determine whether there is an association
between income levels and the consideration of E-Gold as an investment option. The chi-
square statistic is 24.02 with 8 degrees of freedom, and the p-value obtained is 0.002. Since
this p-value is less than the conventional threshold of 0.05, the result is statistically
significant, leading us to reject the null hypothesis. This suggests that income levels and the
likelihood of considering E-Gold are not independent of each other. Additionally, the
likelihood ratio test also shows a p-value of 0.001, further corming the robustness of this
association. The combined strength of both tests indicates that income is a key factor
influencing whether individuals consider E-Gold as part of their investment portfolio.

Interpretation:
The significant association between income and consideration of E-Gold highlights an
important behavioral trend: individuals with higher incomes, particularly those earning
₹10,00,000 and above annually, demonstrate a stronger inclination toward considering E-
Gold as an investment avenue. This may be attributed to several factors. Higher-income
groups generally have more surplus funds available for investment and are more likely to
diversify their portfolios into alternative assets like E-Gold to hedge against market volatility
or inflation. They may also have greater exposure to financial education, investment advisors,
and digital platforms, making them more aware of modern investment products. On the other
hand, lower-income groups may prioritize traditional savings or lower-risk investments and
may lack awareness or trust in digital gold investments. Overall, this finding suggests that
income plays a critical role in influencing investment preferences and the adoption of newer
financial instruments such as E-Gold.

57
4. H0: Gender and perception of E-Gold as a long-term investment are not related.
H1: Gender and perception of E-Gold as a long-term investment are related.
Analysis:

58
The Pearson Chi-Square test was performed to examine the association between gender and
the perception of E-Gold as a better long-term investment option. The chi-square value was
found to be 6.28 with 8 degrees of freedom, and the asymptotic significance (p-value) was
0.616. Since this p-value is much higher than the conventional threshold of 0.05, the test
result is not statistically significant. This suggests that the null hypothesis — stating that there
is no association between gender and perception of E-Gold as a long-term investment —
cannot be rejected. In other words, gender does not play a decisive role in influencing
investment preferences regarding E-Gold.

Interpretation:
The lack of statistical significance indicates that perceptions of E-Gold as a favorable long-
term investment do not differ meaningfully among different genders. This suggests that
awareness, understanding, or trust in E-Gold is uniformly distributed across males, females,
and other gender categories. The decision to view E-Gold as a viable long-term investment
appears to be influenced by other factors — such as financial literacy, income, or occupation
— rather than gender. For financial institutions or marketers, this implies that gender-specific
campaigns may not be necessary for promoting E-Gold, and efforts should instead focus on
other demographic or psychographic factors.

59
5. H0: Occupation and perception of E-Gold as a long-term investment are not related.
H1: Occupation and perception of E-Gold as a long-term investment are related.

Analysis:

60
The Pearson Chi-Square test was also conducted to determine whether there is an association
between occupation and perception of E-Gold as a better long-term investment. The chi-
square value was calculated as 46.63 with 20 degrees of freedom, and the p-value obtained
was 0.001. Since the p-value is significantly less than 0.05, the result is statistically
significant. This allows us to reject the null hypothesis, confirming that occupation and
perception of E-Gold as a long-term investment are associated. In simple terms, people’s
professional backgrounds influence their opinions on whether E-Gold is a wise long-term
investment.

Interpretation:-
The statistically significant association indicates that different occupational groups — such as
students, salaried employees, business owners, professionals, and homemakers — have
varied perceptions of E-Gold. This variation could stem from differences in financial
knowledge, risk appetite, income levels, or exposure to investment opportunities. For
example, business owners or professionals may show greater inclination toward E-Gold as
part of wealth diversification strategies, while salaried employees or students may have
limited knowledge or capital to consider such investments. This finding suggests that
investment awareness campaigns and financial product promotions should be tailored based
on occupational profiles to effective.

61
 Overall Findings

62
  The analysis reveals several key insights. Firstly, age has a significant impact on
cultural values, with younger individuals (18–30 years) showing stronger cultural
value orientations, possibly due to greater exposure to global influences and evolving
societal norms.

 Secondly, while the chi-square test did not show a significant association between
income and platform awareness, the linear-by-linear trend suggests that awareness of
investment platforms increases with rising income levels.

 Thirdly, income is a critical factor influencing the consideration of E-Gold as an

investment, with higher-income groups demonstrating a stronger tendency to adopt it
as part of their portfolio.

 Fourth, gender does not significantly affect perceptions of E-Gold as a long-term

investment, indicating uniformity in investment preferences across genders.

 Lastly, occupation has a notable influence, as individuals from different professional

backgrounds perceive E-Gold differently, highlighting the need for occupation-based
targeting in financial awareness and marketing campaigns.

63
 Limitations

64
  Changing Consumer Mindset – The perception of gold as an investment is
determined by many factors like economic situations, inflation rates, and upcoming
investment options. As these factors keep changing over time, the findings of the
research might not be effective in the long term.

 Geographical Limitation – The research is conducted only for a particular area, i.e.,
Ahmedabad. Therefore, the results might not correctly reflect the people's perception
in other cities or areas where investment choices and market conditions may be
different.

 Small Sample Size – As the research has been carried out in Ahmedabad and
involves few respondents, there are chances that the results may not represent the
whole population. More diverse and larger samples may be able to give more
inclusive insights.

65
 Conclusion

66
This study identifies a number of factors that affect the perception of people regarding gold
as an investment. Age is particularly important, as younger people are more likely to have
stronger cultural values that inform their investment options. Income, though not necessarily
directly related to awareness of investment sites, demonstrates a strong pattern that suggests
awareness is higher for higher-income groups. Income also has a big impact on E-Gold
adoption, with those who are more affluent being more likely to opt for it. Remarkably,
gender proves to be the least significant driver of views about E-Gold as a long-term
investment option. Occupation emerges as the important factor here with a call for
profession-oriented finance literacy and product promotion. With these findings overall,
improved investment education and advertisement campaigns may be designed targeting
varying demographic segments.

67
 Annexure

68
 Survey Questionnaire: People’s perception towards gold as an investment

1. What is your name?*

2. E-mail

3. Age group?*

 18-30 years
 30-40 years
 40-50 years
 50-60 years
 60 above

4. What is your gender?*

 Male
 Female
 Other

5. What is your annual income?*

 Below ₹2,50,000
 ₹2,50,000 - ₹5,00,000
 ₹5,00,000 - ₹7,50,000
 ₹7,50,000 - ₹10,00,000
 Above ₹10,00,000

6. What is your higher level of education?*

 High School or Below

 Undergraduate Degree
 Postgraduate Degree
 Professional or Doctoral Degree

7. What is your current occupation?*

 Student
 professional
 Businessman
 Salaried person
 Retired
 Homemaker
8. Please rate the motivating factors for investing in gold on a scale from 1 to 5 (where 1
represents "Lowest" and 5 represents "Highest.")

69
9. Express your opinion. How would you rate the following hurdles or problems in
investing in gold? (1- Lowest , 5 - Highest)

70
10. How would you rate the following forms of gold investment? (1 - Lowest, 5 -
Highest)

71
11. Please indicate your level of agreement with the following statements about gold
investment by selecting one of the options: Strongly agree, agree, neutral, disagree, or
strongly disagree.

72
12. Are you aware of e-gold investment as an option?*

73
  yes
 no

13. If you are aware of e-gold, which platform do you prefer for investing in e-gold?*

 Zerodha
 Groww
 Upstox
 SafeGold
 MMTC-PAMP
 I am not aware about e-gold investment

14. Do you consider e-gold a better investment compared to traditional gold (e.g.,
physical gold or gold ETFs)?*

 Yes, it’s more convenient

 No, I prefer traditional gold investments
 I’m not sure

74
 Bibliography

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75
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76
 Thank you

(Dr. Saifali dani)

77