The Psychological Dynamics of Gold Investment: An Examination of Investor Behavior within the Gold Market of Bengaluru.

Abstract

The purpose of this investigation is to assess the impact of investment trends and historical investment experience on the returns derived from gold investments. It intends to investigate how individual behaviors, shaped by psychological and educational determinants, influence investment decisions within the gold market of Bengaluru. Through the assessment of the correlation between behavioral dimensions, such as risk tolerance and market perception and educational attainment, the research aims to pinpoint the primary factors that drive gold investment decisions. The outcomes are expected to yield insights into investor psychology, providing significant implications for financial planners, policymakers and investors who aspire to enhance their strategies within the ever-evolving landscape of gold investments. The Present study is exploratory study. A systematic questionnaire was used to conduct the survey. Data were collected in both offline and online. Online data were collected from google forms. Respondents were selected through a random sampling and convenience sampling technique. For data analysis, a total of 120 responses were used. The regression analysis elucidates a notable effect of investment experience and strategic approach on returns, with a p-value of less than 0.05 signifying a relationship between the independent and dependent variables. The chi-square outcomes reveal that mental accounting, self-deception and emotional factors exert a substantial influence on individual investors' decision-making processes regarding investments in gold (p-value < 0.05). This research presents a distinctive viewpoint by amalgamating behavioral psychology with educational elements to elucidate the decision-making mechanisms associated with gold investments. Through an in-depth exploration of the relationships among investment behaviors, experiential learning and financial yields, it emphasizes previously disregarded variables that affect investor actions within the gold market of Bengaluru, thereby making substantial contributions to both academic discussions and practical investment practices.