Investigating the Gold Investment Decision during the COVID-19 Pandemic in Bengkulu City, Indonesia

Abstract

The current landscape of the Indonesian economy bears the weight of the COVID-19 pandemic, witnessing a widespread downturn across nearly all sectors. In response to this economic strain, one potential avenue for bolstering or preserving individual welfare levels lies in investment strategies. This study scrutinises the impact of various sociodemographic factors on individuals' decisions to invest in gold amidst the COVID-19 crisis. Specifically, gender, age, education, occupation, income, and risk tolerance are examined to discern their influence on gold investment decisions. Conducted within Bengkulu City, the study engages with 190 respondents and employs multiple regression techniques to illuminate key insights. This research reveals a nuanced interplay between sociodemographic variables and gold investment choices during the pandemic. Gender, age, income, and risk tolerance are significant influencers, exerting discernible effects on individuals' inclinations toward gold investment. Notably, the analysis unveils that gender and age dynamics, alongside income disparities, play pivotal roles in shaping investment behaviours, with certain demographics exhibiting a heightened propensity for gold investment in the face of economic uncertainty. Conversely, the impact of education and occupation on gold investment decisions appears less pronounced within the context of Bengkulu City during the pandemic. While these variables undoubtedly shape individuals' financial dispositions, their direct influence on the inclination toward gold investment seems less substantial amidst the prevailing economic challenges. In essence, this study underscores the multifaceted nature of investment decision-making during times of crisis, shedding light on the intricate interplay between sociodemographic factors and investment behaviours. By unravelling these dynamics, policymakers, and investors can glean valuable insights into crafting tailored strategies to navigate economic turbulence and safeguard individual welfare amid uncertainty.