Gold vs Bank FD: Gold in India has historically been a preferred investment option, particularly among low-income households and the rural population. Cultural affinity, weddings, and festive gifting remain the primary factors driving gold demand in India.
A household survey revealed that lower and mid-income groups consider gold a better investment than bank deposits, citing its role as an inflation hedge and its fungibility for raising short-term funds. Plain gold jewellery is also preferred as it has better realisation value. This was revealed in the findings of the household survey conducted by the India Gold Policy Centre (IGPC).
