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Abstract
Gold is immortal, exceptional and mystical metal that is sought as a traditional wealth preserver in every society.The purpose of the paper is to study the perception of investors towards gold by identifying and analysing various motivating factors that induce the investors to invest in gold.Survey method was used to conduct the study in the major cities of Punjab. Data were collected through a well-structured questionnaire from a sample of 400 respondents.Traditional and conventional values is identified as the most important factor followed by portfolio diversifier, financial security, wealth preserver, safe haven and liquidity and marketability that influence the investment decision of gold buyers. The study has a regional bias since the respondents belong to a single state of northern India i.e., Punjab. Family influences and impact of tradition is inevitable from the results. Taking findings of the study into consideration, strategies could be drawn by the regulatory authorities to formulate a comprehensive gold policy that may help gold to contribute more to the exchequer instead of adversely affecting the current account.