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This article is more than 1 year old.

IGPC to start door to door household survey on gold, will study investment behavior

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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.

IGPC to start door to door household survey on gold, will study investment behavior
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:
  • Saving, investment and consumption behaviour of gold and gold related products
  • Share of gold in total savings and investments portfolio of the household (Asset allocation)
  • Inherited holding vs purchase from own income
  • Understand its various utilization- collateral, monetize, display of wealth, social pressures
  • Preferences between investment and adornment
  • Perception as wealth protection and exchange value
  • Attitudes to and perceptions of Gold on relevant dimensions
  • Impact of policy measures (recent past and present) other specific issues for analysis
  • Understand the impact of pandemic on savings in gold and how people used it overcome any crisis
  • Millennials preference towards gold
  • 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.
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