Economics of Consumption and Consumer Demand for Gold in India

Full Article - PDF

Published: 2022-01-25

Page: 39-45


D. Amutha *

St. Mary’s College (Autonomous), Thoothukudi, India.

*Author to whom correspondence should be addressed.


Abstract

Gold has a special place in the economic world as a wealth storage and, for a long time, as a measure of a nation's economic power and the cornerstone of international monetary regimes. The price of gold has risen rapidly in recent years around the world. This paper discloses about the trend and growth of world gold jewellery consumption and consumer demand for gold in India.

The objectives of the present study are:

  1. To study the gold jewellery consumption of various countries.
  2. To find out consumer demand for gold in India
  3. To assess the trend and growth of trend and growth of world gold jewellery consumption and consumer demand for gold in India.

This study follows the empirical research. In order to analyse the trend and growth of world gold jewellery consumption and consumer demand for gold in India, percentage methods, co-efficient of variations, linear trend and compound growth rate have used. The secondary data collected through the internet, books, newspaper, journals records and brochures. The mean consumer demand for gold bars in India for the 17 years was 131.42 tonnes with standard deviation of 67.66 tonnes. The value of the coefficient of variation specifies that the gold bars performance was relatively stable over 17 years compared to the jewelry demand and coins in India. It is seen that the trend coefficients of the two components were found to be statistically significant at 5 percent level and they are positive. It indicates that, on an average, the world gold jewellery consumption and consumer demand for gold in India have increased at the rate of 5.36 percent and 7.34 percent per year respectively. The higher growth rate was observed in consumer demand for gold in India than in world gold jewellery consumption. The compound growth rates are 0.77 percent and 6.53 percent for world gold jewellery consumption and consumer demand for gold in India respectively.

Keywords: Jewellery industry, economic power, foreign exchange, gold consumption, retail investment


How to Cite

Amutha, D. (2022). Economics of Consumption and Consumer Demand for Gold in India. Asian Journal of Economics, Finance and Management, 4(1), 39–45. Retrieved from https://globalpresshub.com/index.php/AJEFM/article/view/1440

Downloads

Download data is not yet available.

References

Export Import Data Bank, Department of Commerce, Ministry of Commerce & Industry. MMTC MIS Data Center, MMTC; 2017.

Anand R, Tulin V. India’s current account deficit from the savings-investment perspective, India: Selected Issues, IMF Country Report No. 14/58, February; 2014.

The Precious Metal Gold.

Available:https://www.minerals.net/gemstone/gold_gemstone.aspx, 2020.

How Gold Affects Currencies.

Available:https://www.investopedia.com/articles/forex/11/goldseffect-currencies.asp

World Gold Council Report (Q3, 2017),

Available:https://www.gold.org/research/ retrieved on 07th December 2017.

Available:http://www.gold.org

Rajkumar R. Consumer behaviour in rural markets with special reference to perishables, non-perishables and durable goods in Coimbatore District. Unpublished Ph.D. Thesis Submitted to Bharathiar University, Coimbatore; 2006.

Ismail Z, Yahya, Shabri A. Forecasting gold prices using multiple linear regression method. American Journal of Applied Sciences. 2019;6(8).

Alok Kala. Gem Stones and Jewellery in Jaipur. Diamond World. 2010;38(4):12-14.

Jain. A trend analysis of export performance of gems & jewellery industry in India. IJESM. 2012;2(2):170-174.

Deepa S, Natarajan M. A Study of customers’ attitude and behaviour on jewellery purchase in salem. International Journal of Research in Commerce and Management. 2013;4(2):137-142.

Asha K, Edmund Christopher S. A study on buying behaviour of customers towards branded and non-branded gold jewellery with reference to Kanyakumari District. International Journal of Management. 2014;5(10):105-114.

Nand Kishor Soni, Ajay parashar. Gold demand increase and its impact on Inflation. Journal of Research in Humanities and Social Science.2015;3(2).