Investor Behavior Toward Gold During Economic Uncertainty in India (Author: Manjuladevi H. S and Ashoka H L)

Abstract       

Gold remains a vital component of India’s financial and cultural fabric. During periods of economic uncertainty, investors often reallocate their portfolios toward gold as a safe-haven asset. This study examines the behavioural aspects of Indian investors toward gold during economic crises, emphasizing the factors influencing their decisions. Based on primary data from 150 investors and secondary sources such as the World Gold Council and the Reserve Bank of India, correlation and regression analyses were conducted to explore the relationship between economic instability and gold investment behaviour. Results indicate that inflation, exchange rate fluctuations, and perceived safety are significant determinants of gold investment. Cultural beliefs and liquidity preferences also influence investors’ choices. The findings affirm that gold functions as both a financial shield and a cultural asset during periods of uncertainty in India.