Green Gold Choices in South Tamil Nadu – A Study on Investor Perceptions of SGBs, ETFs, and Jewellery

Abstract

This study examines investor behaviour and preferences concerning three primary gold investment options—Sovereign Gold Bonds (SGBs), Gold Exchange-Traded Funds (ETFs), and traditional gold jewellery—focusing on the South Tamil Nadu region. Utilising the framework of behavioural finance theory, this study explores the influence of key psychological biases, including risk aversion, loss aversion, herd behaviour, and emotional attachment, on investment decisions. Primary data were collected from 300 respondents using a structured questionnaire and analysed using statistical methods such as binary and multinomial logistic regression, chi-square tests, and moderation analysis. The findings indicate that, contrary to traditional assumptions that emotional and risk-related biases significantly impact investment behaviour, none of the behavioural variables demonstrated a statistically significant influence on the choice of gold investment in this sample. Furthermore, socio-demographic factors such as income did not significantly moderate these relationships. The results underscore the necessity of a more nuanced understanding of investor behaviour that integrates both behavioural and structural factors, such as accessibility, digital literacy, and trust in formal investment systems. This study contributes to the emerging literature on sustainable investment behaviour in developing regions and provides practical recommendations for enhancing awareness and the adoption of formal gold investment instruments.