Behavioral Finance In The Context Of India's Gold Market

Abstract

Rationale: The primary goal of this paper is to assess gold investor activity in terms of gold demand generators, rationale for gold purchases, and the motives of gold buying. 

Research Design: The research was created using a combination of secondary data analysis and a large primary survey with a sample of 600 gold investors’ selected by using convenience sampling technique and tried to take opinions through online questionnaire. Finally, 449 investors responded after a prolonged persuasion and efforts.

Findings: According to the survey, Indian households purchase gold for a variety of purposes, despite the fact that gold is regarded as a key cost in both good and bad times. India’s people desire to invest in gold to protect themselves against market volatility and uncertainty.

This survey reveals that uncertainty is the most significant aspect to consider when it comes to the impact of stock market circumstances on gold. Factors such as income tax, retail investors' decision-making is influenced by the intrinsic worth of properties, future opportunities, and profitability, and gold is the most sought-after commodity due to its high liquidity, conventional value, and cultural value features.