Factors Influencing Gold Buying Behavior of Retail Consumers in India with Respect to Individual’s Determinants

Abstract

India’s love affair with gold is timeless and gold is not just another precious metal but is a part and parcel of the Indian culture. However of recent there has been a shift in the mindset of the people and they have started looking at gold beyond a status symbol. Therefore the objective of this study is to examine the factors impacting the gold buying behaviour of the retail consumers and to examine which of these factors i.e. Risk and return, Market information, Motives, Security, Opinions and Benefits, have significant impact on the different age group. Regression analysis was done to identify the most significant factor out of the six identified factors (by factor analysis) that has impact on different Age groups. It has being observed that Motives behind buying gold, market information and risk and returns influence the investment decisions of the buyers with respect to different age groups.