Gold has historically maintained a unique dual role as both a commercial commodity and a monetary hedge across global financial systems, particularly within emerging markets like India. This empirical investigation evaluates the multi-faceted determinants governing individual investor decisions regarding gold allocation. Employing a structured quantitative survey administered across 250 diverse retail and institutional investors in the Vidarbha region, the study analyzes the interplay between demographic dynamics, perceived financial security, inflation hedging efficacy, liquidity demands, and socio-cultural imperatives. Through Factor Analysis and Multiple Linear Regression models, four primary underlying constructs were extracted: Inflation-Hedge Expectation, Systemic Safety & Liquidity Preference, Socio-Cultural & Wealth Preservation Tradition, and Portfolio Diversification Utility. The findings demonstrate that while inflation hedging and psychological safety remain primary drivers, investment vehicle innovations—such as Sovereign Gold Bonds (SGBs) and Gold Exchange Traded Funds (ETFs)—are rapidly shifting investor preferences away from traditional physical ornaments toward financialized gold products. The regression model accounts for 68.4% of the variance in investment allocation decisions. The study offers vital strategic implications for asset management companies, financial planners, and policymakers seeking to optimize gold monetisation schemes.

Bhumika Zingulal Bachhale, Dr. Ujwala Narkhede, "A Study on Factors Influencing Investors' Decision to Invest in Gold" International Journal of Scientific Research and Engineering Development, V9(5): Page(1523-1532) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.