Published Paper Details:

Gold has always been perceived as a reliable and safe investment option, particularly during times of financial uncertainty. With rapid technological growth and the emergence of financial technology platforms, the traditional practice of investing in physical gold has undergone a transformation, giving rise to digital gold investment. This mode of investment allows individuals to buy, hold, and sell gold electronically, backed by actual physical reserves, thus combining the security of traditional gold with the convenience of modern technology. This article aims to explore two critical dimensions of digital gold investment. First, it seeks to identify the key financial reasons that motivate investors to prefer digital gold over its physical counterpart. These financial drivers include affordability through fractional ownership, cost efficiency by eliminating making charges and storage costs, high liquidity through instant redemption options, portfolio diversification benefits, and transparency of pricing linked to global gold markets. Such advantages have made digital gold particularly attractive to small and medium investors who may not have the capacity to purchase larger quantities of physical gold. Second, the article examines the influence of behavioral finance factors on investor decisions. Traditional finance suggests investors act rationally; however, behavioral finance demonstrates that cognitive biases, emotions, and social factors often drive financial choices. In the case of digital gold, trust in fintech platforms, herd behavior influenced by peers and media, risk aversion during economic instability, mental accounting practices, and overconfidence in personal investment skills all play a crucial role. These behavioral dimensions explain why many investors are drawn to digital gold even beyond its financial advantages. The study concludes that investment in digital gold is shaped by a blend of economic logic and psychological tendencies. While financial motives ensure accessibility, liquidity, and efficiency, behavioral factors reinforce the decision-making process by providing emotional reassurance and perceived security. Together, these factors highlight the growing relevance of digital gold as a mainstream investment option, especially for the younger, tech-savvy generation seeking flexible and transparent wealth-building opportunities.