A Study on Factors Influencing the Investors to Invest In Gold –The Precious Yellow Metal

Dr.C.D.N. Rakkini

Savings is the portion of income which is not spent and investment is the act of money to earn profit in the near future. There are various investment opportunities available in the financial market such as securities, real estate, bank deposits, commodity exchange, mutual funds, life insurance funds, provident fund, pension funds, bonds and investments made in precious metals etc. The investor is expected to examine every aspect, its associated risks, its features or its qualities and its possible maximum return. Investment means employment of funds in various assets for getting return or value appreciation. Here investment means employment of funds to the idle asset i.e. gold. The investor’s preference to invest in gold arises due to factors such as liquidity, inflation beating capacity, prestige value and safe guard during financial crisis and hence the demand for purchase or investment in gold has never been decreased. Even though many economic changes such as demonetization and the implementation of GST has affected the economy, people in India prefer to invest in gold and in gold ornaments, Hence the study has been conducted in Southern part of Chennai to analyse the investors preference to invest in gold. The research study is constructed on data collected through a set of standardized questions circulated amid 600 customers of various jewellery shops in and around South Chennai. The samples were selected using simple random sampling technique and the study is based on analyzing some of the factors which influence the investors to invest in gold.

Volume 11 | 10-Special Issue

Pages: 276-282

DOI: 10.5373/JARDCS/V11SP10/20192802