Factors influencing gold purchase behaviour of buyers in Erode City

Gold has been traditionally the preferred asset for Indians. In India, even today is amongst the largest purchasers of gold in the world. The Indians lust for gold has caused a tsunami of gold imports. This paper made an attempt to identify the factors influencing gold purchase behavior of buyers. Using a factor analysis by principal component method, this study identified investment alternative, liquidity, status quo, safety, quality conscious and customs and traditions are predominantly influencing factors of gold purchasing behaviour. After the thorough analysis it has been found out the demographic variables significantly differ with the factors of gold purchase behaviour. This study paves the way to understand the buyers and also useful to sellers of gold for preparing their policies and strategies.