Does Financial Literacy Affect Decisions Regarding Gold Investments? Risk Perception, Income, and Financial Behavior of the Surakarta Community

Abstract

The objective of this study is to examine the impact of financial literacy on individuals' decisionmaking about investments in gold. The significance of financial literacy, financial behavior, income, and risk perception is crucial in the process of making investment decisions. The ongoing investment endeavors serve to raise individuals' awareness regarding future interests and wants. The present study used the partial least squares (PLS) method, with the assistance of the Smart PLS 3.0 software. The study's sample consisted of 100 participants who engaged in gold investments. The findings derived from the conducted research indicate that individuals' decisions to invest in gold are influenced by factors such as financial literacy, financial behavior, income, and risk perception. This research incorporates the Strategic Knowledge Management (SKM) theory, which posits that businesses, from a business standpoint, should allocate resources towards the acquisition and utilization of knowledge. In addition to this, it is imperative to disseminate educational resources to the general public regarding the significance of allocating funds towards gold investments, as gold is widely regarded as a secure and prudent option for long-term financial endeavors.