A Study of Factors influencing Gold Investment Decisions Among Households

This study analyzes the relationship between the price sensitivity, safety/security perceptions, and inflation-hedging perceptions, and their relationship with household gold-investment decision. The data supplied with the questionnaire consists of 156 responses, and it contains the following types of data: demographic data, current position regarding gold investment, preferred form of investment, multi-item Likert-type statements, and a relative-ranking question. Composite scores were computed as the average of items available for each construct. Descriptive statistics, Chi square tests, One-way analysis of variance (ANOVA), and multiple linear regression were reported. The means were 3.675 for price sensitivity, 3.850 for safety/security, 3.777 for inflation hedging and 3.710 for the gold-investment decision score. The regression model was statistically significant, F(3, 152) = 80.88, p < .001, and accounted for 61.5% of the variance in the decision score (R² = .615; adjusted R² = .607). Price sensitivity (B = .242, p = .001) and inflation hedging (B = .506, p < .001) were statistically significant positive predictors. The safety/security effect was not statistically significant at the 5% level (B = .137, p = .054). Results are exploratory and should be interpreted with caution due to high concentration of younger respondents, low internal consistency of the price-sensitivity scale, some expected counts are small in some of the demographic tables, and full sampling and reference information was not provided.