Trust, Tradition, and Perceived Liquidity as Drivers of Gold Investment Decisions: Evidence from Meureubo, West Aceh-Indonesia

Abstract

Abstract

This study aims to analyze the influence of trust, tradition, and perceived liquidity on gold investment decisions among the community of Meureubo District, West Aceh Regency. The sampling technique was determined using the Cochran formula combined with a simple random sampling method, resulting in 97 respondents. The data were analyzed using inferential analysis based on Partial Least Squares (PLS) with the assistance of SmartPLS version 4.1.1.6. The results indicate that trust has a positive and significant effect on gold investment decisions, reflecting the community’s strong confidence in gold as a safe and stable investment instrument. In contrast, tradition does not have a significant effect, suggesting that investment decisions are driven more by rational considerations than by inherited cultural practices. Meanwhile, perceived liquidity has a positive and significant influence, as gold is perceived to be easily liquidated and flexible in meeting urgent financial needs. In the context of the Meureubo community, which largely depends on the agricultural and fisheries sectors, these findings imply that gold investment serves as a diversification strategy to reduce the risk of income fluctuations among farmers and fishermen, while also functioning as a hedge against economic instability.