A STUDY ON THE FACTORS DETERMINING YOUNG INVESTORS' CHOICE OF DIGITAL GOLD OVER PHYSICAL GOLD

In e na ional Jou nal o Compu a ional Resea ch and De elopmen (IJCRD)
In e na ional Pee Re iewed - Re e eed Resea ch Jou nal, Websi e: www.d publica ion.com
Impac Fac o : 5.015, ISSN (Online): 2456 - 3137, Volume 10, Issue 2, July - Decembe , 2025
107
A STUDY ON THE FACTORS DETERMINING YOUNG INVESTORS’ CHOICE
OF DIGITAL GOLD OVER PHYSICAL GOLD
L. San hi* & Jisha T P**
* Assis an P o esso , Depa men o Comme ce, VET Ins i u e o A s and Science College (Co-
Educa ion), E ode, Tamil Nadu, India
** Ph.D Resea ch Schola , Depa men o Comme ce, VET Ins i u e o A s and Science College (Co-
Educa ion), E ode, Tamil Nadu, India
Ci e This A icle: L. San hi & Jisha T P, “A S udy on he Fac o s De e mining Young In es o s’ Choice o Digi al Gold O e
Physical Gold”, In e na ional Jou nal o Compu a ional Resea ch and De elopmen , Volume 10, Issue 2, July - Decembe , Page
Numbe 107-110, 2025.
Copy Righ : © DV Publica ion, 2025 (All Righ s Rese ed). This is an Open Access A icle dis ibu ed unde he C ea i e
Commons A ibu ion License, which pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium p o ided he
o iginal wo k is p ope ly ci ed.
DOI:
Abs ac :
Gold has adi ionally been one o he mos p e e ed in es men op ions among Indian households due o i s cul u al
signi icance, sa e y, and angible alue. Howe e , wi h he ise o in ech pla o ms, digi al gold has eme ged as an al e na i e
in es men a enue, pa icula ly among young in es o s. This s udy aims o examine he ac o s in luencing young in es o s’
p e e ence o digi al gold o e physical gold and o analyze he ela ionship be ween demog aphic a iables and in es men
choices. A s uc u ed ques ionnai e was adminis e ed o 100 young in es o s in Palakkad Dis ic , and da a we e analyzed using
pe cen age analysis, chi-squa e es , and F iedman anking es . The indings e eal ha con enience, liquidi y, and secu i y a e
he main ac o s d i ing he p e e ence o digi al gold, while angibili y and cul u al alue emain impo an o physical gold.
Demog aphic ac o s such as gende , age, and educa ion we e no signi ican , whe eas annual income and in es men expe ience
signi ican ly in luenced in es men choices. The s udy highligh s he g owing ole o in ech in shaping in es men beha io and
p o ides insigh s o inancial ins i u ions and policymake s o p omo e in o med in es men decisions among young in es o s.
Key Wo ds: Digi al Gold, Physical Gold, Young In es o s, In es men P e e ences, Fin ech Pla o ms, In es men Op ions, E c.,
In oduc ion:
Gold has long been ega ded as one o he mos eliable and p e e ed in es men op ions among Indian households.
T adi ionally, physical gold in he o m o jewel y, coins, and ba s has domina ed he in es men landscape due o i s cul u al
signi icance, pe cei ed sa e y, and angible na u e. Howe e , in ecen yea s, he ad en o inancial echnology ( in ech)
pla o ms has ans o med he way indi iduals in es in gold. The eme gence o digi al gold an online o m o in es men whe e
in es o s can buy, sell, and s o e gold elec onically has gained ema kable popula i y, pa icula ly among young in es o s.
Digi al gold o e s se e al ad an ages such as con enience, a o dabili y, anspa ency, and he abili y o in es in small
denomina ions h ough mobile applica ions and in ech pla o ms. These ea u es align well wi h he p e e ences o he ech-sa y
younge gene a ion, who seek lexible and secu e in es men op ions ha can be managed digi ally. Fu he mo e, ac o s such as
easy liquidi y, eal- ime p icing, and in eg a ion wi h e-walle s and online paymen sys ems ha e made digi al gold a mo e
a ac i e al e na i e o adi ional physical gold.
The changing in es men landscape e lec s a g owing shi in a i udes, whe e digi al con enience o en ou weighs he
emo ional and cul u al a achmen associa ed wi h physical asse s. Young in es o s oday a e mo e inclined owa ds digi al
pla o ms ha p o ide ins an access, lexibili y, and he abili y o moni o in es men s in eal ime. Despi e hese bene i s,
physical gold s ill holds sen imen al and adi ional alue o many, symbolizing secu i y and he i age. The e o e, he choice
be ween digi al and physical gold is in luenced by mul iple ac o s such as awa eness, us , pe cei ed sa e y, echnological
com o , and in es men p e e ences.
E olu ion o Gold:
Pe iod/Yea
S age o E olu ion
Desc ip ion
Ancien Pe iod
(Be o e 500 BC)
O namen al and
Cul u al Use
Gold was used o making jewel y, idols, and a i ac s in ci iliza ions like
Egyp , Mesopo amia, and he Indus Valley; symbolized weal h, di ini y, and
powe .
Classical Pe iod (500
BC - 1500 AD)
Medium o
Exchange
Gold coins we e in oduced by kingdoms and empi es (e.g., Roman Au eus,
Indian Gup a coins) as a us ed cu ency o ade and comme ce.
16 h - 18 h Cen u y
Gold-backed T ade
Expansion
Gold became cen al o global ade du ing he colonial and me can ile e a;
Eu opean powe s accumula ed gold ese es h ough explo a ion and ade.
19 h Cen u y (1821
onwa ds)
Gold S anda d E a
The Gold S anda d linked pape cu ency o gold ese es, p o iding
in e na ional mone a y s abili y and us in na ional cu encies.
20 h Cen u y (Pos -
Wo ld Wa I)
End o Gold
S anda d
Many coun ies mo ed away om gold-backed cu encies; he U.S. o icially
ended he Gold S anda d in 1971 unde P esiden Nixon.
La e 20 h Cen u y
(1980s-1990s)
In es men and
Rese e Asse
Gold became a popula in es men op ion and a key ese e asse o cen al
banks and in es o s du ing pe iods o in la ion and economic c isis.
Ea ly 21s Cen u y
(2000-2010)
Gold ETFs and
Online T ading
The in oduc ion o Gold Exchange-T aded Funds (ETFs) made i easie o
in es o s o ade gold wi hou physical owne ship.
Recen E a (2010-
P esen )
Digi al Gold and
Fin ech In eg a ion
Fin ech pla o ms enabled ac ional and digi al owne ship o gold; in es o s
can buy, sell, and s o e gold elec onically using apps and online paymen
sys ems.
In e na ional Jou nal o Compu a ional Resea ch and De elopmen (IJCRD)
In e na ional Pee Re iewed - Re e eed Resea ch Jou nal, Websi e: www.d publica ion.com
Impac Fac o : 5.015, ISSN (Online): 2456 - 3137, Volume 10, Issue 2, July - Decembe , 2025
108
Fu u e Ou look
Blockchain and
Tokenized Gold
Eme ging echnologies aim o make gold in es men mo e anspa en , secu e,
and globally accessible h ough blockchain-based digi al okens.
Re iew o Li e a u e:
Recen s udies ha e highligh ed he g owing in luence o in ech inno a ions on in es men beha io , pa icula ly among
young in es o s choosing digi al gold. Sha ma and Meh a (2024) examined how mobile-based in ech pla o ms ha e simpli ied
gold in es men h ough ea u es like eal- ime p icing, mic o-in es men s, and easy liquidi y. Thei indings e ealed ha
con enience and echnological accessibili y we e he p ima y d i e s in luencing you h o p e e digi al gold o e adi ional
o ms. Simila ly, Kapoo (2023) analyzed consume us and secu i y pe cep ions in digi al gold ansac ions and ound ha
anspa en ope a ions and egula o y assu ances signi ican ly enhanced in es o con idence.
Reddy and Thomas (2023) explo ed he beha io al ac o s shaping in es men choices in digi al asse s, no ing ha
younge in es o s a e mo e open o echnology-d i en in es men s due o highe digi al li e acy and isk ole ance. Singh (2022)
in es iga ed he shi om physical o digi al gold and obse ed ha awa eness campaigns by in ech pla o ms and in eg a ion
wi h paymen apps encou aged small-scale in es o s o pa icipa e in gold in es men . The s udy also ound ha ease o
ansac ions and he absence o s o age conce ns made digi al gold a p e e ed choice among millennials.
Acco ding o Bane jee (2021), digi al gold ac s as a b idge be ween adi ional in es men habi s and mode n inancial
echnology. The s udy emphasized ha young in es o s’ p e e ence o digi al gold is in luenced no only by con enience bu also
by he oppo uni y o di e si ica ion and ins an edemp ion. Pa el (2020) highligh ed ha emo ional a achmen and cul u al
belie s con inue o mo i a e olde gene a ions o in es in physical gold, whe eas young in es o s p io i ize digi al con enience,
anspa ency, and lexibili y. Ea lie esea ch by K ishnan (2019) poin ed ou ha awa eness and educa ion play a c ucial ole in
he adop ion o new inancial p oduc s such as digi al gold. The s udy concluded ha he ansi ion om physical o digi al
in es men o ms depends hea ily on inancial li e acy, us in in ech pla o ms, and pe cei ed echnological sa e y.
Signi icance o he S udy:
The s udy is signi ican as i p o ides insigh s in o he changing in es men p e e ences o young in es o s, highligh ing
he ac o s ha d i e hei choice o digi al gold o e physical gold. Unde s anding hese ac o s can help in ech companies
design be e p oduc s, enhance use us , and p omo e wide adop ion o digi al in es men pla o ms. Addi ionally, he indings
can guide inancial ad iso s and policymake s in c ea ing awa eness, imp o ing inancial li e acy, and suppo ing he shi owa d
mo e con enien and echnology-d i en in es men op ions among he younge gene a ion.
S a emen o he P oblem:
Gold has adi ionally been one o he mos p e e ed in es men op ions in India due o i s cul u al signi icance, sa e y,
and long- e m alue. Howe e , he apid g ow h o in ech pla o ms has in oduced digi al gold as a con enien and accessible
al e na i e, pa icula ly appealing o young, ech-sa y in es o s. Despi e i s inc easing popula i y, he e is limi ed unde s anding
o he ac o s ha d i e young in es o s o choose digi al gold o e physical gold. Ques ions ega ding us , secu i y, ease o use,
echnological awa eness, and pe cei ed bene i s con inue o in luence in es men decisions. This s udy seeks o add ess his gap
by examining he de e minan s behind young in es o s’ p e e ence o digi al gold, p o iding insigh s in o how in ech
inno a ions a e eshaping adi ional in es men pa e ns and in luencing mode n inancial beha io .
Objec i es o he S udy:
 To iden i y he ac o s in luencing young in es o s’ p e e ence o digi al gold o e physical gold.
 To analyze he ela ionship be ween demog aphic a iables and he choice o in es men in digi al and physical gold
among young in es o s.
Limi a ions o he S udy:

The s udy is limi ed o Palakkad Dis ic , so he indings may no be gene alized o o he egions.

The sample size o 100 esponden s is ela i ely small, which may limi he s a is ical s eng h o conclusions.

The s udy elies on sel - epo ed esponses h ough ques ionnai es, which may be subjec o bias o inaccu acies.
Resea ch Me hodology:
A ea o he S udy: The s udy was conduc ed in Palakkad Dis ic , ocusing on young in es o s’ p e e ences o digi al gold and
physical gold.
Na u e and Sou ce o Da a: The s udy is based on p ima y and seconda y da a. P ima y da a we e collec ed using a s uc u ed
ques ionnai e adminis e ed o young in es o s in he selec ed a ea. Seconda y da a we e ga he ed om jou nals, magazines,
ex books, and online esou ces ela ed o in es men beha io and gold p e e ences.
Sampling Me hod: A o al o 100 young in es o s we e selec ed using he pu posi e sampling me hod o ensu e ep esen a ion o
in es o s ac i ely pa icipa ing in gold in es men .
S a is ical Tools Used:
 Simple pe cen age analysis o unde s and he demog aphic p o ile o esponden s.
 C oss abula ion o examine he ela ionship be ween demog aphic a iables and in es men p e e ences.
 Chi-squa e es o de e mine he signi icance o associa ions be ween demog aphic ac o s and p e e ence o digi al o
physical gold.
 F iedman anking es o iden i y and ank he ac o s in luencing p e e ence o digi al gold and physical gold.
Analysis and In e p e a ion: Table 1: Demog aphic P o ile o Responden s (n=100)
Fac o s
No. o Responden s
Pe cen age (%)
Gende
Male
35
35
Female
65
65
Age (Yea s)
In e na ional Jou nal o Compu a ional Resea ch and De elopmen (IJCRD)
In e na ional Pee Re iewed - Re e eed Resea ch Jou nal, Websi e: www.d publica ion.com
Impac Fac o : 5.015, ISSN (Online): 2456 - 3137, Volume 10, Issue 2, July - Decembe , 2025
109
Up o 25
35
35
26 o 35
45
45
Abo e 35
20
20
Educa ional Quali ica ion
Up o HSC
20
20
G adua e
50
50
Pos g adua e & Abo e
30
30
Annual Income
Up o Rs. 2,50,000
40
40
Abo e Rs. 2,50,000
60
60
In es men Expe ience
Less han 1 yea
30
30
1-5 yea s
50
50
Abo e 5 yea s
20
20
Table 1 p esen s he demog aphic p o ile o he in es o s in he s udy. Among he 100 in es o s su eyed, 65% a e
emale and 35% a e male, indica ing ha a la ge p opo ion o in es o s a e women. In e ms o age, 35% o in es o s a e up o
25 yea s old, 45% a e be ween 26 and 35 yea s, and 20% a e abo e 35 yea s. This shows ha he majo i y o in es o s a e young
adul s, pa icula ly in he 26-35 age g oup, ep esen ing ech-sa y indi iduals who a e likely o adop digi al in es men op ions.
Rega ding educa ional quali ica ion, 50% o in es o s a e g adua es, 30% hold pos g adua e deg ees, and 20% ha e educa ion up
o HSC. This sugges s ha mos in es o s a e well-educa ed, which may in luence hei in es men choices and willingness o
explo e mode n in es men pla o ms like digi al gold. In e ms o annual income, 60% o in es o s ea n abo e Rs. 2,50,000,
while 40% ea n up o Rs. 2,50,000, indica ing ha highe -income in es o s a e mo e ac i e in gold in es men s.
In e ms o in es men expe ience, 50% o in es o s ha e 1-5 yea s o expe ience, 30% ha e less han 1 yea , and 20%
ha e mo e han 5 yea s. This implies ha he majo i y o in es o s a e mode a ely expe ienced and likely o make in o med
decisions, including adop ing in ech solu ions o gold in es men .
Table 2: Compa a i e F iedman Ranking Table - Digi al Gold s Physical Gold
Fac o s
Mean Rank
(Digi al Gold)
Rank (Digi al
Gold)
Mean Rank
(Physical Gold)
Rank (Physical
Gold)
Con enience and Accessibili y / Tangibili y &
Owne ship
6.85
1
7.05
1
Liquidi y and Ease o T ansac ion / Cul u al &
Emo ional Value
6.12
2
6.48
2
Sa e y and Secu i y / Sa e y om Digi al Risks
5.90
3
6.10
3
Real-Time P icing and T anspa ency / In es men
o Long-Te m
5.45
4
5.65
4
A o dabili y and Small In es men Op ions /
Liquidi y h ough Jewele s/Buyback
4.98
5
5.12
5
In eg a ion wi h Digi al Paymen Sys ems / In la ion
Hedge
4.56
6
4.78
6
Minimal S o age and Main enance Hassle /
A o dabili y and Small Pu chase Op ions
4.32
7
4.20
7
Flexibili y and Di e si ica ion / S o age and
Main enance Hassle
3.82
8
3.62
The compa a i e F iedman anking able shows he ac o s in luencing young in es o s’ p e e ence o digi al gold
e sus physical gold along wi h hei mean anks. Fo digi al gold, he highes - anked ac o is con enience and accessibili y wi h
a mean ank o 6.85, ollowed by liquidi y and ease o ansac ion (6.12) and sa e y and secu i y (5.90). This indica es ha young
in es o s p io i ize ease o use, quick ansac ions, and secu e digi al s o age when choosing digi al gold. Fo physical gold, he
op ac o is angibili y and owne ship wi h a mean ank o 7.05, ollowed by cul u al and emo ional alue (6.48) and sa e y om
digi al isks (6.10), showing ha in es o s alue physical possession, emo ional connec ion, and secu i y when in es ing in
adi ional gold.
Fac o s such as in eg a ion wi h digi al paymen sys ems/in la ion hedge (mean anks 4.56 o digi al gold and 4.78 o
physical gold), minimal s o age and main enance hassle/a o dabili y and small pu chase op ions (4.32 and 4.20), and lexibili y
and di e si ica ion/s o age and main enance hassle (3.82 and 3.62) a e anked lowes o bo h ypes o gold, indica ing ha
p ac ical and seconda y conside a ions a e less in luen ial. O e all, he able highligh s ha digi al gold is chosen o con enience,
liquidi y, and secu i y, whe eas physical gold is p e e ed o angibili y, emo ional alue, and sa e y om digi al isks.
Table 3: Demog aphic Va iables and Choice o In es men in Digi al Vs Physical Gold among Young In es o s
Va iable
Ca ego y
P e e Digi al
Gold (n)
P e e Physical
Gold (n)
χ² Value
Table Value
(5%)
Rema ks
Gende
Male
25
10
0.052
3.841
No Signi ican
Female
45
20
Age (yea s)
Up o 25
20
15
3.871
5.991
No Signi ican
26-35
35
10
Abo e 35
15
5
In e na ional Jou nal o Compu a ional Resea ch and De elopmen (IJCRD)
In e na ional Pee Re iewed - Re e eed Resea ch Jou nal, Websi e: www.d publica ion.com
Impac Fac o : 5.015, ISSN (Online): 2456 - 3137, Volume 10, Issue 2, July - Decembe , 2025
110
Educa ion
Up o HSC
10
10
5.842
5.991
No Signi ican
G adua e
35
15
Pos g adua e & Abo e
25
5
Annual Income
Up o Rs. 2,50,000
20
20
7.714
3.841
Signi ican
Abo e Rs. 2,50,000
50
10
In es men
Expe ience
Less han 1 yea
10
20
14.333
5.991
Signi ican
1-5 yea s
40
10
Abo e 5 yea s
15
5
The chi-squa e analysis o in es o s’ p e e ence o digi al gold e sus physical gold indica es ha gende , age,
and educa ional quali ica ion do no ha e a signi ican in luence on he choice o in es men . The calcula ed chi-squa e alues o
hese a iables a e less han he able alues a 5% signi icance, sugges ing ha in es o s ac oss di e en gende s, age g oups, and
educa ional backg ounds show simila endencies in hei p e e ence. Howe e , annual income and in es men expe ience show a
signi ican associa ion wi h p e e ence, as hei chi-squa e alues exceed he able alues. Highe -income in es o s and hose wi h
mo e in es men expe ience a e mo e likely o p e e digi al gold o e physical gold. O e all, he indings sugges ha inancial
capaci y and amilia i y wi h in es men p ac ices a e he main ac o s d i ing he adop ion o digi al gold among in es o s.
Sugges ions o he S udy:
Young in es o s show a clea p e e ence o digi al gold due o i s con enience, liquidi y, and secu e s o age, while
physical gold is alued o angibili y and cul u al signi icance. To encou age wide adop ion o digi al gold, in ech pla o ms
should ocus on enhancing use expe ience, o e ing easy- o-unde s and guidance o i s - ime in es o s, and p o iding
educa ional con en abou digi al gold in es men . Financial ins i u ions and in es men ad iso s can o ganize wo kshops o
webina s o imp o e awa eness and us among in es o s, pa icula ly highligh ing he bene i s o small in es men op ions and
eal- ime ansac ions. Addi ionally, in eg a ing digi al gold pla o ms wi h widely used paymen sys ems and ensu ing s ong
secu i y measu es will u he a ac in es o s. Fo physical gold, ma ke e s should emphasize he long- e m alue, emo ional
signi icance, and sa e s o age op ions o main ain in es o in e es .
Conclusion:
The s udy concludes ha young in es o s in he sample show a s ong inclina ion owa d digi al gold o e physical gold,
p ima ily d i en by ac o s such as con enience, liquidi y, and secu e digi al s o age. While demog aphic a iables like gende ,
age, and educa ion do no signi ican ly in luence in es men p e e ence, annual income and in es men expe ience play a c ucial
ole in shaping choices. Physical gold emains alued o i s angibili y, cul u al signi icance, and pe cei ed long- e m secu i y,
bu digi al gold appeals mo e o ech-sa y in es o s seeking lexibili y and ease o ansac ions. The indings highligh he
g owing impo ance o in ech pla o ms in ans o ming adi ional in es men beha io and sugges ha inancial li e acy, use -
iendly digi al pla o ms, and secu e in es men op ions a e key o encou aging wide adop ion o digi al gold among young
in es o s.
Re e ences:
1. “Gold wi hou he gli e : Why in es o s a e mo ing away om physical gold.” (2025, No embe 12). India Today.
2. D . K. Ganesamu hy & M. Anjuka (2025). “In es o s Pe cep ion owa ds Gold ETFs, Gold Bond, Gold Deposi s and
Physical Gold in Tamil Nadu.” In e na ional Jou nal o Mul idisciplina y Resea ch (IJFMR).
3. D . M. Sume ha, Y. Dilipbhai Lad & L. Jain (2024). “A S udy o Gold as an In es men Op ion in he Digi al E a wi h
Special Re e ence o Vadoda a.” IJCRT, 12(5).
4. D . Sha anya P., Ms. Pa i h a R., Ms. Abi ami D. (2025). “Explo ing In es o A i udes Towa ds Gold as an In es men
A enue Ac oss Di e se Ma ke Condi ions.” In e na ional Jou nal o Inno a ion S udies, 9(2).
5. D . Suja a Kuma i, Va sha Sh i am Ne leka & Neelam Rau (2024). “Gold as a Sa e Ha en: Analyzing he In es men
Pa e ns o Indian Women.” Jou nal o In o ma ics Educa ion and Resea ch, 4(3).
6. H. Ken  Bake & Rohi  Kuma Sha ma (2025). “Fin ech Adop ion and Disposi ional Inno a i eness in E Gold
In es men : E idence om India.” Jou nal o Theo e ical & Applied Elec onic Comme ce Resea ch, 20(2), 105.
7. Kuma , Rohi  & Bake , H. Ken (2025). Fin ech Adop ion and Disposi ional Inno a i eness in E Gold In es men :
E idence om India. Jou nal o Theo e ical & Applied Elec onic Comme ce Resea ch, 20(2), 105.
8. Mish a, Ayush. (2024, Oc obe 18). Mos young Indian in es o s p e e digi al gold o e adi ional: Su ey. Business
S anda d.
9. Shanka i, S. S. (2023). “A S udy and C ea ing Awa eness on In es men in Digi al Gold.” In e na ional Jou nal o
Resea ch and Analy ical Re iews (IJRAR), 10(2).
10. Shanka i, S. Shi a. (2023). A S udy And C ea ing Awa eness On In es men In Digi al Gold. In e na ional Jou nal o
Resea ch and Analy ical Re iews (IJRAR), 10(2).
11. Suchi a, V. G., Lohi h, V., & Sub amanyan, B. (2025). A S udy on Pe cep ion o In es o s in Digi al Gold Ma ke .
Eu opean Jou nal o Managemen , Economics and Business, 2(2).
12. Yamini Bha ga i, K. & Neehalika Ba ya, S. P. (2021). Digi al Gold - The Cu en In es men T end in India.
In e na ional Jou nal o Psychosocial Rehabili a ion, 25(3), 843 847.