A Study on Perception of Investors Towards Gold as an Investment Avenue in Madurai City

Since the beginning of civilization, gold has been one of the most sought after metals in the world. Because of its durability it has been used by nations as fiat currency. Nations may fall, paper money may lose its value but gold will always remain as something of value. But there are certain disadvantages in investing gold. As compared to other precious metals, gold has a low industrial demand. Largely investors only decide its demand and value. In the short run, gold is an excellent store-house of wealth as long term investment gold is not an ideal investment. This is because its return is easily outplaced by the equity market. Moreover investment in gold has no payout in terms of dividends. This study aims at collecting investor’s response towards investment in gold. Seventy five respondents were interviewed through structured questions. Pros and cons of investing gold have been elicited. The author has highlighted the limitations in investing in gold. It is learned that gold import has eroded most of our foreign currency.so it will increase our current account deficit resulting in declining our rupee value against dollar.