Gold has been a traditional choice for Indians. There has been a lot of demand for gold in India since ancient times. Gold has been useful to people for everything from jewelery to protection in bad times. A unique trend has been seen in the love of Indians for gold in recent years. A recent report shows that in the districts of the country where Covid has wreaked havoc, people’s attraction towards gold has increased more than before.
What came to light in this study
This has been said in a report of Times of India quoting a study by International Review of Economics and Finance. According to the report, people in the districts worst hit by Covid are now buying more gold as compared to other areas. In the top-third districts with the highest number of Covid cases per thousand population, it has been seen that the share of gold in household savings is higher than before.
Increased share in household savings
According to the study, the share of gold in household savings is 6.9 percentage points higher in the top third districts (CVD districts) with more cases of Covid as compared to other districts. Even in such districts, poor families have bought more gold. The allocation in gold among poor families of CVD districts is 7.3 percentage points, which is more than 5.4 percentage points of rich families in the same districts.
So much investment in gold
Study says That is, households in CVD districts invested Rs 3,898 more in gold as compared to non-CVD districts. On the other hand, their stake in financial assets and other assets remained less. In financial assets and other assets, households in CVD districts invested Rs 11,466 and Rs 3,478 less respectively compared to non-CVD districts.
People’s behavior changed due to the pandemic
This study shows that people who have been hardest hit by Covid are seeing gold as a safe investment. In fact, the Covid pandemic attacked people not only healthily but also economically. Due to this, the pandemic has had a massive impact on people’s spending and saving and investing patterns. This is the reason why Covid was more devastating in the district areas, where people’s trust in gold increased. In those areas too, the trust of poor families on gold increased more, because the epidemic affected their economic condition more.
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