The India Gold Policy Centre (IGPC) of IIM Ahmedabad, IGPC-IIMA, an independent think tank with in-house expertise in the area of gold markets, sees that there is an urgent need to build and disseminate high quality, inter-connected, reliable and up-to-date data to capture the ground realities about gold consumption and usage behavior of Indian households.
This can be achieved, as IGPC says, only through undertaking a scientific dedicated primary survey on an on-going basis to create a time series data to understand the dynamics of gold consumption, investment and usage behavior.
This is important in the Indian context as gold is currently the third largest contributor to the trade deficit. In addition, jewellery purchases tend to take gold out of the money circulation loop.
The proposed research is aimed to achieve following broad objectives:
The survey is planned to be bi-annual for five consecutive years and is worked on a sample frame of 2,00,000 households covering 25 states, as per IGPC- IIMA.
According to a study by ICE 360 Survey, 2016, done by People Research on India’s Consumer Economy (PRICE) 12 percent of the Indian households bought gold in some form or the other in a year.
On selecting right gold scheme, IGPC says that one must foremost see how fungible the gold that is being held in the scheme is. After that one has to evaluate the cost of holding and returns.