Determinants of Shari’ah gold investment behaviour: the case of Penang, Malaysia

Abstract

Purpose

Gold investment is one of the essential long-term investments for many to diversify their investment portfolios. Muslims are continuously looking for halal products and services in any aspect of life and one of them is Shari’ah gold investments (SGI). However, evidence pertinent to Muslims’ behaviour towards Shari’ah gold is somewhat inconclusive and for that, a new empirical investigation is needed to reduce the gap, at best. Hence, the purpose of this study is to study factors determining SGI behaviour in Penang, Malaysia.

Design/methodology/approach

By using the Islamic theory of consumer behaviour (ITCB), this study examines the determinants of the SGI behaviour. The questionnaire survey was distributed and the data gathered was analysed using partial least square structural equation modeling.

Findings

All hypothesised hypotheses were instrumental in explaining the factors determining SGI behaviour in the context of Penang, Malaysia.

Research limitations/implications

This study has at least two limitations, namely, confined generalisations of the variables used and the limited context of the research conducted.

Practical implications

This study sheds light on the determinants influencing SGI behaviour, at best.

Originality/value

This study is original in terms of its final output that enlightens the significant effects of iman, Islamic altruism, maqasid consumer index on the behaviour of investors on Shari’ah gold within the ITCB’s context along with integrated religious satisfaction.

Citation

Juisin, H.A., Mohd Sayuthi, M.A.S., Amin, H. and Shaikh, I.M. (2023), "Determinants of Shari’ah gold investment behaviour: the case of Penang, Malaysia", Journal of Islamic Marketing, Vol. 14 No. 12, pp. 3228-3246. https://doi.org/10.1108/JIMA-11-2021-0360