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The Effect of Inflation on Public Interest in Gold Investment

2022-11-02
Published
69-81
Pages
OPEN
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II
Indah Ihwana
Management Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar
WR
Wa Ode Rayyani
Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Makassar
Abstract

Purpose: The study examines the effect of inflation on public interest in investing in gold, as inflation can reduce purchasing power and encourage individuals to seek wealth-preserving investments.

Methodology: The study employed a quantitative associative design. Data were collected from 30 students and working individuals using a five-point Likert scale questionnaire and analyzed through validity, reliability, and simple linear regression tests.

Results: The findings show that inflation has a positive and significant effect on public interest in gold investment (β = 0.608, p = 0.032). Although the instrument reliability was below the conventional threshold due to the limited number of items, all questionnaire items were valid. The model explained 15.4% of the variation in gold investment interest (R² = 0.154).

Conclusions: Inflation has a positive and significant effect on public interest in gold investment, supporting the Inflation Hedge Theory, which suggests that gold is viewed as a means of preserving wealth during periods of declining purchasing power. However, much of the variation in investment interest is explained by factors beyond the model.

Limitations: This study is limited to a sample of 30 respondents and examines only a single independent variable, inflation, so its findings cannot be broadly generalized.

Contributions: This study enriches the literature on gold investment behavior by providing empirical evidence on the relationship between inflation perception and investment interest, and offers a reference point for the public in considering gold as an instrument for preserving asset value.

Gold Investment Inflation Inflation Hedge Investment Interest Public Perception
How to Cite
Ihwana, I., & Rayyani, W. O. . (2022). The Effect of Inflation on Public Interest in Gold Investment. Jurnal Teknika Dan Informatika, 2(2), 69-81. https://doi.org/10.52909/hbrhq604
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Ihwana, I., & Rayyani, W. O. . (2022). The Effect of Inflation on Public Interest in Gold Investment. Jurnal Teknika Dan Informatika, 2(2), 69-81. https://doi.org/10.52909/hbrhq604
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