Psychological Determinants of Safe-Haven Asset Preference: Why Investors Choose Gold

Gold continues to occupy a unique position within global investment markets because its appeal extends beyond financial returns. Investors frequently perceive gold as a source of certainty, protection, and long-term financial security during periods of economic uncertainty. The present paper argues that these perceptions are not solely determined by market conditions but are significantly influenced by stable psychological characteristics. By integrating behavioural finance with personality psychology, this study proposes a conceptual framework explaining how personality traits influence perceptions of risk, financial security, and ultimately safe-haven asset preference. The framework suggests that investors' decisions to allocate wealth toward gold are shaped not only by economic considerations but also by enduring psychological differences in how uncertainty is perceived and managed. The paper contributes to the growing behavioural finance literature by shifting the focus from the economic performance of gold to the psychological processes underlying investors' preference for safe-haven assets. This perspective provides a more comprehensive understanding of gold investment behaviour and offers a foundation for future empirical investigations into the interplay between personality, financial decision-making, and investment preferences.

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