NEED FOR THE STUDY

Commodity markets are where raw or primary products are exchanged. Commodity market is of
two types i.e., Hard (Non-Agricultural) and Soft (Agricultural) commodities here Hard
commodities are typically Nonagricultural or natural resources (Gold, Silver, Copper Natural
Gas) and Soft Commodities are the agricultural commodities(Coffee, Corn, Wheat, Sugar). The
problem faced by the participants in the market is to predict the price movement of the
commodity and to take the right decision when to entry and exit the market to make a maximum
profit. As Gold Commodities are more sensitive in the market, their price prediction is rigorous
job. Thus, there is a need to study the present scenario of the performance of the non-agricultural
commodities in Indian stock market.
 With the global uncertainties & complex environmental changes, the demand for gold is
increasing across the globe; World gold council (2016), reported a 4% global demand
increase.
 The researcher has gone through a number of research papers and articles and barely any
of them showed any relationship between gold and investment choice. So, at this juncture
it is important to conduct a research in this field which will be unique in nature and will
be helpful for the government of India, jewelers, investors and researchers.
 With the rising demand and investment in gold, there is a need to identify whether this
investment choice is rational choice, behavioral choice or rule-based choice.
 Many researchers have studied the investment choice of the investor in various
investment avenues but a very few researchers have explored this investment choice in
gold. Therefore the present study focuses on examining the investment choices of
Investors in context to gold in Indian Market.