Identifying the Pattern of Investment Preferences in the Currency and Gold Markets
Keywords:
gold market, foreign exchange market, Investment preferences , investment decisionsAbstract
The objective of this study is to identify and explain the investment preference pattern in the currency and gold markets using thematic analysis. This qualitative study employed thematic analysis to investigate the determinants of investment preferences. Data were collected through 21 in-depth, semi-structured interviews with experts and practitioners in the gold and foreign exchange markets, selected via purposive and snowball sampling. Interviews were transcribed verbatim and analyzed following Braun and Clarke’s six-phase framework, including familiarization, coding, theme development, review, definition, and reporting. Credibility and dependability were enhanced through member checking, peer debriefing, documentation of analytic procedures, and inter-coder reliability (Cohen’s kappa = 0.82). The analysis revealed five core categories shaping investment preferences: macroeconomic factors, market characteristics, psychological and behavioral drivers, risk–return expectations, and individual investor attributes. Gold investment preferences were largely influenced by perceived safety, inflation-hedging expectations, and long-term value stability. Currency market preferences were driven by volatility, policy uncertainty, short-term profit expectations, and fear of currency depreciation. Across both markets, cognitive biases and subjective expectations significantly moderated the impact of economic variables. Investment preferences in the gold and currency markets emerge from a multidimensional and dynamic interaction of economic, structural, psychological, and individual-level factors. Understanding this interplay offers practical insights for policymakers aiming to stabilize financial markets and for investors seeking informed decision-making.
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Copyright (c) 2025 Elham Dadashzadeh (Author); Nader Rezaei (Corresponding author); Ali Jafari, Rasoul Abdi (Author)
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