In India, inflation runs at about 10% (in terms of the M3 money supply). Banks give an interest of about 7%. From this interest, Tax is deducted. So effectively people get about 5% interest if they save in a bank deposit or something equivalent.
Real estate in India went into a bubble territory a few years ago, because of government policies. The overheads and taxes in buying/selling property are high. So the number of people investing in real estate has greatly declined.
Most stocks are overvalued. Government agencies like LIC buy index stock and so the government can paint a rosy picture of the economy. But, sooner or later, the true value gets reflected in stock price.
When Indians invest in gold/silver, their savings are protected from inflation theft. If they use cash, then even taxes are avoided. The chart below shows the average rise/fall in the price of gold/silver for last few years.
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