Beyond Physical Possession: Creating Investor Awareness and Enhancing Adoption of Gold ETFs in Emerging Markets

Abstract

Gold remains one of the most preferred investment assets, particularly in emerging economies where it functions as a store of wealth, inflation hedge, and cultural asset. Despite the emergence of modern gold investment avenues such as Gold Exchange Traded Funds (Gold ETFs), investors continue demonstrating a strong preference toward physical gold ownership. Limited awareness, perceived complexity, trust concerns, and behavioral biases frequently restrict adoption of financialized gold products. The present paper aims to examine the need for investor awareness regarding Gold ETFs and identify factors that can encourage wider adoption.

Using a secondary data analytical approach, the paper synthesizes evidence from financial reports, industry publications, and behavioral finance literature. Findings indicate that while Gold ETFs offer significant advantages including liquidity, transparency, safety, and cost efficiency, investors frequently remain unaware of these benefits or continue relying on traditional investment practices. The paper proposes an awareness-centered framework and suggests policy interventions, financial literacy initiatives, and behavioral strategies to improve Gold ETF participation.