“Pre & Post Covid analysis of Gold as an

Investable Avenue in Nagpur City”

Submitted to

Shri Ramdeobaba College of Engineering and Management, Nagpur

in partial fulfillment of VI Semester of

Master of Business Administration (Integrated)

in specialization

“FINANCE”

Submitted by Project Guide

“Sudipto Shil” & “Shushank Giri” “Dr. Tejasvini Paralkar”

2022-23

Department of Management Technology

Shri Ramdeobaba College of Engineering and Management, Nagpur
(An Autonomous Institute affiliated to Rashtrasant Tukdoji Maharaj Nagpur
University, Nagpur)

March 2023
1
 SHRI RAMDEOBABA COLLEGE OF
ENGINEERING AND MANAGEMENT, NAGPUR
(An Autonomous Institute affiliated to Rashtrasant
Tukdoji Maharaj Nagpur University, Nagpur)
Department of Management Technology

CERTIFICATE

This is to certify that the Thesis on “Pre & Post Covid analysis of Gold as an
Investable Avenue in Nagpur City” is a bonafide work of Sudipto Shil & Shushank
Girri submitted to the Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur in
partial fulfillment VI Semester of MBA (Integrated). It has been carried out at the
Department of Management Technology, Shri Ramdeobaba College of Engineering
and Management, Nagpur during the academic year 2019-20.

Date: 11/03/2023
Place: Nagpur

Dr. Tejasvini Paralkar

Project Guide

Dr. Rupesh Pais Dr. Kanchan Naidu

Head Coordinator-MBA(Integrated)

Department of Management Technology

Dr. R. S. Pande

Principal

Shri Ramdeobaba College of Engineering and Management, Nagpur

2
 DECLARATION

I, hereby declare that the project titled " Study of Pre & Post Covid analysis of Gold
as an investable avenue in Nagpur City " submitted herein, has been carried out in
the

Department of Management Technology of Shri Ramdeobaba College of

Engineering and Management, Nagpur. The work is original and has not been

submitted earlier as a whole or part for the award of any degree / diploma at this or

any other institution / University.

Date: 11/03/2023

Place: Nagpur

Sudipto Shil (67) & Shushank Giri (69)

3
 ACKNOWLEDGEMENT

A project report is never the sole product of a person whose name appears on the

cover. There is always the help, guidance and suggestions of many in preparation

of such a report. So, I have indebted to several people who have helped me in

completing the project.

I wish to express my sincere gratitude to Dr. Rupesh Pais, Head of the Department

and Dr. Kanchan Naidu, Coordinator of Management Technology, Shri

Ramdeobaba College of Engineering & Management, Nagpur, to embark on this

Project.

I also wish my sincere gratitude to my guide Dr. Tejaswini Paralkar, Department of

Management Technology, Shri Ramdeobaba College of Engineering &

Management, Nagpur, to help me completing the project.

4
 TABLE OF CONTENTS

Chapte Page
Topic
r No. No.

1 Introduction

2 Literature Review

3 Research Methodology

4 Data Analysis and Interpretation

5 Conclusion

6 Suggestions

Appendix

8 Bibliography

5
 CHAPTER 1 – INTRODUCTION

1. Introduction to topic

6
1.1 What is Investment

An investment is an asset or item accrued with the goal of generating income or recognition. In an
economic outlook, an investment is the purchase of goods that are not consumed today but are
used in the future to generate wealth. In finance, an investment is a financial asset bought with the
idea that the asset will provide income further or will later be sold at a higher cost price for a profit.

1.2 What is investment avenue

An investment avenue refers to the various types of investment options or opportunities available
to investors. These can include traditional avenues such as stocks, bonds, and mutual funds, as
well as alternative avenues such as real estate, commodities, cryptocurrency, and more.

Investment avenues provide investors with different levels of risk and return, and it's important for
investors to carefully consider their goals and risk tolerance when choosing which avenues to
pursue. Some investment avenues may be more suitable for short-term goals, while others may be
better suited for long-term investing.

1.3 What are the investment avenue in gold

Investment avenues in gold include:

Physical gold: This refers to buying gold in the form of bars or coins from a dealer or a jeweler.
This is one of the most common ways of investing in gold.

Gold Exchange Traded Funds (ETFs): Gold ETFs are exchange-traded funds that track the price
of gold. Investors can buy and sell shares of these funds on stock exchanges, just like stocks.

Gold Mutual Funds: Gold mutual funds invest in companies engaged in gold mining, refining, or
distribution. These mutual funds can be bought and sold through a broker or an investment
platform.

7
Gold Futures and Options: Futures and options contracts on gold are traded on commodity
exchanges. These contracts allow investors to speculate on the price of gold in the future.

Sovereign Gold Bonds: Sovereign Gold Bonds are government securities denominated in grams of
gold. These bonds can be bought and sold on stock exchanges and offer an annual interest rate in
addition to price appreciation.

Investors should carefully evaluate the pros and cons of each investment avenue in gold before
making an investment decision. Factors such as liquidity, storage costs, transaction fees, and tax
implications should also be considered.

1.4 Pre covid era of gold as an investment in India?

India's gold demand has seen a 47 per cent year-on-year jump in the July-September quarter to
139.1 tons, following Stroud in economic activity and recovering consumer demand, the World
Gold Council said in a report. According to the World Gold Council (WGC), gold demand in India is
bouncing back to pre-COVID levels and going forward the outlook looks bullish.

Before the COVID-19 pandemic, gold has been a popular investment option for many investors
due to its reputation as a safe-haven asset that tends to retain its value during times of economic
uncertainty or inflation.

Gold has historically been seen as a hedge against inflation and currency fluctuations. During
periods of economic uncertainty, investors tend to move their money from stocks and other riskier
assets to gold, which is viewed as a safe store of value.

Additionally, gold has been used as a form of currency for thousands of years and is universally
recognized and accepted. This makes it a desirable investment option for investors who want to
diversify their portfolios.

In the years leading up to the COVID-19 pandemic, the price of gold was generally on the rise due
to a variety of factors, including low interest rates, geopolitical tensions.

Overall, gold has long been seen as a valuable investment option, and its popularity has only
increased in recent years as investors have sought to protect their portfolios against economic
uncertainty and volatility.

8
1.5 What was the Pre covid era of gold as an investment avenue

In the pre-COVID era, gold was viewed as a safe-haven asset that provided a hedge against
inflation and economic uncertainty. The price of gold was influenced by a range of factors,
including interest rates, geopolitical tensions, and the value of the US dollar.

During this time, gold was often seen as an attractive investment option for investors looking to
diversify their portfolios and protect their wealth. Many investors believed that gold offered a stable
store of value that could help protect against the effects of inflation or a sudden market downturn.

Gold was also popular among central banks and other large institutional investors, who often held
gold as a reserve asset to help stabilize their portfolios.

Overall, the pre-COVID era was characterized by a strong demand for gold as an investment
option, driven by a range of economic and geopolitical factors. Many investors viewed gold as a
valuable addition to their portfolios and expected it to continue to perform well in the future.

1.6 What was the Post covid era of gold as an investment avenue

The post-COVID era has been marked by significant volatility and uncertainty in the global
economy, which has had a significant impact on the price of gold and its status as an investment
option.

In the early days of the pandemic, gold experienced a significant increase in price as investors
sought safe-haven assets in the face of market volatility and economic uncertainty. However, as
governments and central banks around the world began to implement monetary and fiscal stimulus
measures, the price of gold began to fluctuate.

Throughout the post-COVID era, the price of gold has been influenced by a range of factors,
including interest rates, currency fluctuations, and geopolitical tensions. However, the overall trend
has been one of volatility and uncertainty, as investors have struggled to predict how the global
economy will be affected by the ongoing pandemic.

Despite these challenges, many investors continue to view gold as an important component of a
diversified portfolio. While the price of gold may fluctuate in the short term, its historical reputation
as a safe-haven asset has led many investors to believe that it will continue to provide protection
against economic uncertainty and market volatility in the long term.

9
1.7 Study of pre and post covid era of gold as an investible avenue

A study of the pre and post-COVID era of gold as an investible avenue highlights the significant
impact that the pandemic has had on the global economy and the investment landscape.

In the pre-COVID era, gold was viewed as a safe-haven asset that offered protection against
inflation and economic uncertainty. The price of gold was influenced by a range of factors,
including interest rates, currency fluctuations, and geopolitical tensions. Gold was considered an
attractive investment option for many investors who sought to diversify their portfolios and protect
their wealth.

However, the post-COVID era has been characterized by significant volatility and uncertainty,
which has had a significant impact on the price of gold and its status as an investment option. In
the early days of the pandemic, gold experienced a significant increase in price as investors
sought safe-haven assets in the face of market volatility and economic uncertainty. However, as
governments and central banks around the world began to implement monetary and fiscal stimulus
measures, the price of gold began to fluctuate.

Despite the challenges of the post-COVID era, many investors continue to view gold as an
important component of a diversified portfolio. While the price of gold may fluctuate in the short
term, its historical reputation as a safe-haven asset has led many investors to believe that it will
continue to provide protection against economic uncertainty and market volatility in the long term.

Overall, the study highlights the importance of considering both the pre and post-COVID eras
when evaluating the investment potential of gold. While the pandemic has had a significant impact
on the global economy and the investment landscape, gold continues to be viewed as a valuable
investment option for many investors.

1.8 Risk while investing in gold

Investing in gold can be a good way to diversify your investment portfolio, but it also comes with
risks. Here are some of the risks associated with investing in gold:

Market risk: The price of gold is subject to market fluctuations, which can be influenced by factors
such as supply and demand, global economic conditions, political unrest, and inflation. This means
that the price of gold can be volatile and unpredictable.

10
Liquidity risk: Gold can be less liquid than other assets, which means that it may be harder to buy
or sell quickly, especially in large quantities. This can be a problem if you need to access your
funds quickly or if you need to sell your gold during a downturn in the market.

Storage risk: Gold is a physical asset, which means that it needs to be stored somewhere safe.
This can be costly, and there is always a risk of theft or loss.

Counterparty risk: If you invest in gold through a third-party such as a bank or a dealer, there is a
risk that the third-party could default or go bankrupt, leaving you with no gold and no way to
recover your investment.

Opportunity cost: Investing in gold means that you are tying up your funds in an asset that may not
generate any income. This means that you may miss out on other investment opportunities that
could offer higher returns.

It is important to keep these risks in mind when considering investing in gold. It is also a good idea
to do your own research and consult with a financial advisor before making any investment
decisions.

11
CHAPTER 2 – LITERATURE REVIEW

12
Research Paper
1. Gold Investment Pattern Analysis during the Pandemic: An Overhaul
 Author: - Mrs. Prathibha Vikram & Dr. Rajendra Kumar Sinha
 Literature review: - A modified co-integration approach provides strong evidence that
gold investments serve as inflationary hedges by Andrew C. Worthington and Mosayab
Pahlavani, (2007). Gold investment can be used as an inflationary hedge, both directly
and indirectly, by analysing the results. Institutional investors' investment behaviors and
portfolio performance have been well studied in economics and finance since Lewellen,
Lease, and Schlarbaum (1977). A sample of clients who had opened accounts with the
firm since January 1964 was used for the analysis.

2. ANALYSIS OF INVESTMENT BEHAVIOR OF INVESTORS IN NAGPUR

CITY - STUDY ON PRE AND POST COVID PANDEMIC
 Author: - Janmejay V. Shukla and Shailesh Kediya

 Literature review: - Using hypothesis testing, Agarbaxani noted that individual investors
dropped 43% of systematic investment plans as a result of COVID pandemic measures.
Investment was decreased due to a decline in household income, a decline in share
prices, and a negative mutual fund performance. As a result of the COVID pandemic,
businessmen were the most affected investors. Investing preferences have now shifted
due to a COVID Pandemic, where investors now prefer moderate risks with moderate
returns. Investor behavior and financial markets are related, according to Fanyi Wang.
Different factors, such as risk perceptions, profitability, and satisfaction, play a role in
influencing the variables studied. Satisfaction positively affects financial risk tolerance
and general risk assessment. Financial risk tolerance is determined by financial risk
assessment. A moderate association was found between satisfaction and general risk to
tolerance and profitability and financial risk to tolerance.

3. Gold as an Investment Avenue: An Analytical Study on Investment

Pattern
 Author: - Avinash Totlani & Shilpa Joshi

13
  Literature review: - In 2011, Andy Soos argued that jewelry consumes 50% of the gold
produced globally, investments 40%, and industries 10%. It has been found that safety
of principal amount, liquidity, income stability, and appreciation are the major factors
behind an investment. Investments in gold and silver are preferred by Coimbatore
investors. A study by Worstall, Tim (2016) found that gold is not the most productive
investment and doesn't offer any ongoing return. It is true that two-thirds of household
savings are in real estate and gold. Culture in India has endured for generations. The
villages haven't changed much, so standard behavior has been derived from very old
historical roots. Physical gold has mass appeal. It is very easy to pawn or sell a small
piece of gold. Former Federal Reserve Chairman Alan Greenspan (2017) expressed
concern about economic prospects in developing countries and analyzed gold's long-
term value. Investing in gold now is insurance against inflation. In a world characterized
by uncertainty, Dallas, Celia (2017) discusses optimal investment strategies and how
gold can benefit from them. Gold is a handy addition to portfolios in the current
environment of swollen central bank balance sheets and currency devaluations.

4. THE IMPACT OF PANDEMIC ON INVESTMENT BEHAVIOUR:

SPECIFICALLY, ON GOLD INVESTMENT IN INDIA
 Author: - Mrs. Prathibha Vikram & Dr. Rajendra Kumar Sinha

 Literature review: - Suryavamshi, Himanshu and Mushir (2021) analyzes the re-
allocation of portfolios during the pandemic. Investors' behavior during the pandemic
varies. Gold and stocks are both considered as safe and risky investments,
respectively, based on the variables affecting the investment avenues available to
investors for diversifying their portfolios. The study compares the variables preferred
by individual investors for gold (a safe investment) against stocks (risky investment).
It examined the rise of gold prices for over a century, examining various variations of
gold standards and significant short-term fluctuations.

5. Gold Investment - Perception & Preference of Consumers

 Author: - Dr. Rashmi Paranjpye, Apoorva Ambhore & Bharat Raghuvanshi
 Literature review: - A modified co-integration approach provides strong evidence that
gold investments serve as inflationary hedges by Andrew C. Worthington and Mosayab

14
Pahlavani, (2007). Gold investment can be used as an inflationary hedge, both directly
and indirectly, by analysing the results. Institutional investors' investment behaviours
and portfolio performance have been well studied in economics and finance since
Lewellen, Lease, and Schlarbaum (1977). A sample of clients who had opened accounts
with the firm since January 1964 was used for the analysis. Using hypothesis testing,
Agarbaxani noted that individual investors dropped 43% of systematic investment plans
as a result of COVID pandemic measures. Investment was decreased due to a decline
in household income, a decline in share prices, and a negative mutual fund
performance. As a result of the COVID pandemic, businessmen were the most affected
investors. Investing preferences have now shifted due to a COVID Pandemic, where
investors The demand for gold in India is influenced by real income and interest rates,
exchange rates, income taxes, and government spending, according to Kannan & Sarat
Dhal (2008). Gold is an important saving instrument in India. Dr. Naliniprava Tripathy
(2016) examined the relationship between Nifty and gold prices over 16 years. In the
short run, Nifty and gold prices are not causally related, but in the long run.eral risk to
tolerance and profitability and financial risk to tolerance. Because gold has religious
significance, status symbol, and ornamental value in India, CS Isha Shankar & SK
Shukla (2017) examined the jewellery market there. In rural areas, people spend more
on jewellery as income increases, according to Dr M Nishad Nawaz & Surindra V R
(2013). The Mahalingam (2018) study examined the relationship between gold prices
and the Nifty, Sensex.

15
CHAPTER 3 – RESEARCH METHODOLOGY

16
3.1 Research Objective

 To study the preference of investors in the pre-Covid-19 era and during Covid era.

 To determine the impact of Covid-19 on Gold spot price volatility .

3.2 Rationale

To provide valuable insights into how investors view gold as an investment in times of crisis.

3.3 Research design

Type of research design

 Descriptive

Sample size

 100 Responses

Sample design

 Convenience sampling

Technique for data analysis

 Descriptive analysis

3.4 Data sources

 Primary data

 Secondary data

3.5 Scope of study

The scope for the study is to analysis the investors perception about Gold investment in pre & post
Covid era.
17
3.6 Limitations

 Respondent may not provide accurate or honest responses, since some of the questions
contain sensitive or personal responses.
 It can be challenging to get individuals to fill out the form, resulting low response rate.

3.7 Data Sources

 Primary data
 Secondary data

18
CHAPTER 5 – DATA ANALYSIS AND INTERPRETATION

19
Demography Received: -

Sr.
Gender Frequency Percentage
No.
1 Male 37 35.90%
2 Female 66 64.10%

20
Profession: -

Sr.
Profession Frequency Percentage
No.
1 Students 34 33.01%
2 Employee 36 34.95%
3 Business Owners 21 20.39%
Full Time
4 12 11.65%
Investor

From the above pie chart of Reponses, we can observe that most of the respondent’s profession is
Employees and a considerable no. of respondents are Business Owners.

21
Is Gold Risk Free Investment?

Sr.
Options Frequency Percentage
No.
1 Yes 64 62.14%
2 No 16 15.53%
3 Maybe 23 22.33%

From the above pie chart of Reponses, we can observe that a large no. of respondents feels that
Gold is risk free investment.

22
Part 1: Pre Covid-19

Objectives of Investing in Gold before Covid-19?

Sr.
Options Frequency Percentage
No.
1 Safety 35 33.98%
2 Liquidity 10 9.71%
3 Return 33 32.04%
4 Low Risk 21 20.39%

From the above pie chart of Reponses, we can observe that people used gold investment mainly
for earning high returns & Safety purposes.

How much did you invested in Gold before Covid-19?

Sr. Options Frequency Percentage

23
No.
1 Below 20,000 43 44.33%
2 20,000 - 40,000 24 24.74%
3 40,000 - 60,000 16 16.49%
4 Above 60,000 43 44.33%

From the above pie chart of Reponses, we can observe that people have mostly invested below
20,000/- rupees before Covid-19.

Which type of Gold investment did you preferred before Covid-19?

Sr. Options Frequency Percentage

24
No.
1 Physical Gold 62 63.92%
Gold ETF (exchange traded
2 17 17.53%
fund)
3 Gold Futures 11 11.34%
4 Paper Gold 7 7.22%

From the above pie chart of Reponses, we can observe that a very high number of people use to
only invest in physical gold, but we can also see that a few numbers of people also use to invest in
gold ETFs.

Preferred period of investment before Covid-19?

25
 Sr.
Options Frequency Percentage
No.
Long Term (more than 3
1 57 58.76%
years)
2 Medium Term (1 - 3 years) 30 30.93%
Short Term (less than 1
3 10 10.31%
year)

From the above pie chart of Reponses, we can observe a high number of people prefer to invest
their money in gold for a long duration of time i.e. more than 3 years.

Part 2: Post Covid-19

26
Objectives of investing in Gold after Covid-19?

Sr.
Options Frequency Percentage
No.
1 Safety 34 34.69%
2 Liquidity 13 13.27%
3 Return 33 33.67%
4 Low Risk 18 18.37%

From the above pie chart of Reponses, we can observe that after Covid-19 people started to invest
in gold with the objective of Safety & Returns.

How much did you invested in Gold after Covid-19?

27
 Sr.
Options Frequency Percentage
No.
1 Below 20,000 39 40.63%
2 20,000 - 40,000 32 33.33%
3 40,000 - 60,000 17 17.71%
4 Above 60,000 8 8.33%

From the above pie chart of Reponses, we can observe that after Covid-19 people started to invest
more in Gold as the percentage of people increased from 25% to 34% in the amount bracket of
20,000 – 40,000/- rupees.

Which type of Gold investment did you preferred after Covid-19?

28
 Sr.
Options Frequency Percentage
No.
1 Physical Gold 45 47.37%
Gold ETF (exchange traded
2 32 33.68%
fund)
3 Gold Futures 6 6.32%
4 Paper Gold 12 12.63%

From the above pie chart of Reponses, we can observe that after Covid-19 also the trend of
investing in physical gold remained constantly high, but we can also see a slight increase in the
percentage of people investing in Gold ETFs i.e., 18% to 33.3%

Preferred period of investment after Covid-19?

29
 Sr.
Options Frequency Percentage
No.
Long Term (more than 3
1 44 45.83%
years)
2 Medium Term (1 - 3 years) 33 34.38%
Short Term (less than 1
3 19 19.79%
year)

From the above pie chart of Reponses, we can observe that after Covid-19 also the trend of
investing the money in gold has remain the same i.e. people still prefer to invest in gold for more
than 3 years.

30
 CHAPTER 6 – CONCLUSION

From the above data we can conclude the following: -

 The demography of gold investors were 63.5% men & 36.5% women.
31
 Profession of investors were 32.7% Students, 34.6% employees, 21.2% Business Owners
&11.5% Full time Investors.
 A high number of investors fell that Gold is a risk free investment i.e 61.5%.
 Objectives of investing in gold has remained same before & after Covid-19 with a high
percentage of investors objective were Safety i.e 35% before covid & 34.4% after covid
 After Covid-19 people started to invest more in Gold as the percentage of people increased
from 25% to 34% in the amount bracket of 20,000 – 40,000/- rupees.
 The trend of investing in physical gold remained constantly high, but we can also see a
slight increase in the percentage of people investing in Gold ETFs i.e., 18% to 33.3%
 The trend of investing the money in gold has remain the same i.e. people still prefer to
invest in gold for more than 3 years.

32
 CHAPTER 7 – SUGGESTIONS

Our project is useful for investors as it provides them with insights on when and how to invest in
gold. Additionally, our research indicates that gold can be considered a relatively low-risk

33
investment. Furthermore, investors may have increased their investments in gold after the COVID-
19 pandemic

34
 APPENDIX

Q. Name

35
Q. Gender

 Male
 Female

Q. Profession

 Students
 Employees
 Business Owners
 Full time Investors

Q. Is Gold a Risk-free investment?

 Yes
 No
 May be

Part 1: Pre Covid-19

Q. Objectives of Investing in Gold before Covid-19?

 Safety
 Liquidity
 Return
 Low Risk

Q. How much did you invested in Gold before Covid-19?

 Below 20,000
 20,000 - 40,000
 40,000 - 60,000
 Above 60,000

36
Q. Which type of Gold investment did you preferred before Covid-19?

 Physical Gold
 Gold ETF (exchange traded fund)
 Gold Futures
 Paper Gold

Q. Preferred period of investment before Covid-19?

 Long Term (more than 3 years)

 Medium Term (1 - 3 years)
 Short Term (less than 1 year)

Part 2: Post Covid-19

Q. Objectives of Investing in Gold after Covid-19?

 Safety
 Liquidity
 Return
 Low Risk

Q. How much did you invested in Gold after Covid-19?

 Below 20,000
 20,000 - 40,000
 40,000 - 60,000
 Above 60,000

Q. Which type of Gold investment did you preferred after Covid-19?

 Physical Gold
 Gold ETF (exchange traded fund)
 Gold Futures
37
  Paper Gold

Q. Preferred period of investment after Covid-19?

 Long Term (more than 3 years)

 Medium Term (1 - 3 years)
 Short Term (less than 1 year)

38
 BIBLIOGRAPHY

Research Paper: -

39
1. Avinash Totlani & Shilpa Joshi, “Gold as an Investment Avenue: An Analytical Study on
Investment
Pattern”https://cibgp.com/article_17593_9560a19e6068b2e51de4680cc05fb87e.pdf

2. Mrs. Prathibha Vikram & Dr. Rajendra Kumar Sinha, “Gold Investment Pattern Analysis
during the Pandemic: An Overhaul”
https://www.journalppw.com/index.php/jpsp/article/download/4687/3095/5308

3. Mrs. Prathibha Vikram & Dr. Rajendra Kumar Sinha, “Gold Investment - Perception &
Preference of Consumers” https://ejbe.org/EJBE2021Vol14No27p029-MAHAJAN-
MAHAJAN.pdf

4. Dr. Rashmi Paranjpye, Apoorva Ambhore & Bharat Raghuvanshi, “Gold Investment -
Perception & Preference of Consumers”
https://tianjindaxuexuebao.com/dashboard/uploads/36.%203NT78%20%281%29%20%28
1%29.pdf

40