Author: Paul Ploumis
08 Oct 2014 Last updated at 08:33:36 GMT
MUMBAI (Scrap Monster): Indian women may prefer gold as consumption material, but not as a safe investment. According to financial advisors in the country, gold is seen losing its investment appeal among Indian consumers, especially women. Indian women, known for their gold craze, prefer to keep out of gold when it comes to investment.
According to experts, the recent plunge in gold prices has made more people opt investment vehicles other than gold. The returns on gold have been pathetic in recent times. On the other hand, signs of global economic recovery have put the stock markets on fire. There has been a visible shift in investor interest to risky assets. Gold which has continuously failed to perform during recent times have lost its safe-haven appeal among customers.
Indian women are rarely involved in making investment decisions. Only 20% of the working women tend to take their own decisions on investment. Studies show that these women no more want to include gold in their list of investments. Gold jewellery still remains an attraction for Indian women. However, they shy away from purchasing gold bars, coins or gold ETFs, having no trust in them.
According to jewellers, gold demand continues to remain modest in India. The consumer turnout at Mumbai’s busiest Zaveri Bazaar remained low during the nine-day long Navarathri festival in India. With more and more analysts turning bearish on gold, the investment demand for the yellow metal is unlikely to bounce back soon.