Insights into Gold Investing: Exploring Investor Behavior

Abstract

A content analysis was conducted to examine factors influencing investor behavior when investing in gold and to look into possible reasons for selling gold. The results showed that investors' needs, return expectations, herding behavior, fear of financial collapse, higher appreciation rate, store of value, and liquidity all significantly impact gold investment decisions. The analysis also identified factors that may lead to selling gold in times of crisis, such as uncertainty caused by the Covid-19 pandemic, perception of gold as a safe haven during global financial instability, rise in the price of gold during crisis periods, its value as a hedging instrument, an essential investment source, protection against inflation, and also as a medium of exchange. An important motive for selling gold during these periods is to flee to safer assets. The research also revealed that although the demand for gold is usually higher in times of economic uncertainty and inflation, cash shortages do not significantly impact the decision to sell gold.