Mumbai: people districts People most affected by Covid put more of their Savings in gold compared to other regions. A study by the International Review of Economics and Finance showed that the share of gold in household savings in Covid-vulnerable districts – the top-third districts with the highest number of cases per 1,000 population – is 6.9 percentage points higher than other districts .
Financial asset holdings declined by 4.1 percentage points, along with an increased allocation towards gold. houses There was an even higher allocation of 7.3 percentage points among CVD districts compared to wealthier households, where there was an allocation of 5.4 percentage points.
The study also found that households with higher financial access allocated 5.8 percentage points less to gold, suggesting that households are less likely to resort to gold as a safe haven. pandemic In the presence of alternative financial instruments.
Household savings in gold were Rs 3,898 higher in CVD districts compared to non-CVD districts, while financial assets And other assets like cash were lower by Rs 11,466 and Rs 3,478 respectively in CVD districts compared to non-CVD districts.
The findings indicate that the higher asset allocation to safe assets was due to the Covid crisis and not due to portfolio resizing. The report supports the argument that there was a ‘migration to safety’ of sleeping for households in Covid-sensitive Indian districts during the pandemic, which was seen in both relative and absolute terms.
The International Review of Economics and Finance is a peer-reviewed academic journal covering research in theoretical and empirical international economics. Study ‘Gold in household portfolio ‘During a Pandemic: Evidence from India’ follows a comprehensive household survey conducted in 142 districts across 21 states in India during the financial year 2020-21.
Earlier, the RBI had published a report showing that there was a ‘cash shortage’ in many markets, which had led to increased currency circulation during the pandemic. During Covid, most people increased cash balance to be prepared for any emergency.
Financial asset holdings declined by 4.1 percentage points, along with an increased allocation towards gold. houses There was an even higher allocation of 7.3 percentage points among CVD districts compared to wealthier households, where there was an allocation of 5.4 percentage points.
The study also found that households with higher financial access allocated 5.8 percentage points less to gold, suggesting that households are less likely to resort to gold as a safe haven. pandemic In the presence of alternative financial instruments.
Household savings in gold were Rs 3,898 higher in CVD districts compared to non-CVD districts, while financial assets And other assets like cash were lower by Rs 11,466 and Rs 3,478 respectively in CVD districts compared to non-CVD districts.
The findings indicate that the higher asset allocation to safe assets was due to the Covid crisis and not due to portfolio resizing. The report supports the argument that there was a ‘migration to safety’ of sleeping for households in Covid-sensitive Indian districts during the pandemic, which was seen in both relative and absolute terms.
The International Review of Economics and Finance is a peer-reviewed academic journal covering research in theoretical and empirical international economics. Study ‘Gold in household portfolio ‘During a Pandemic: Evidence from India’ follows a comprehensive household survey conducted in 142 districts across 21 states in India during the financial year 2020-21.
Earlier, the RBI had published a report showing that there was a ‘cash shortage’ in many markets, which had led to increased currency circulation during the pandemic. During Covid, most people increased cash balance to be prepared for any emergency.
(TagstoTranslate)Business News(T)Savings(T)Pandemic(T)Household(T)Domestic Portfolio(T)Gold(T)Financial Assets(T)Districts(T)Covid