Millennials are now the leading generation for buying and investing in gold, more than Baby Boomers and Generation X. However, according to a recent survey, millennials are more likely to be investing in paper gold rather than physical gold.
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Considered a “safe haven asset,” gold keeps its value and stability as market downturns and economic uncertainty occur. The report by State Street stated that on average, millennials have 17% of their portfolios allocated to gold. Boomers and X-ers lag with a 10% allocation on average.
Chief Gold Strategist at State Street, George Milling-Stanley, added in the report that “more Millennials than Boomers or Gen X replied that gold ETFs are the best way to invest, with 69% for Millennials, compared with Boomers at 55% and Gen X at 35%.”
“Among investors who hold gold, more than half of all respondents said they expect to increase their gold holdings in the next 6 – 12 months. At 57%, the percentage of investors in gold ETFs who plan to buy more slightly outweighed investors in other gold investments such as bars and coins, gold mining company stocks, gold futures and options, and commodity funds at 53%,” Milling-Stanley wrote.
About 88 percent of survey respondents who currently have gold holdings believe the yellow metal to be a long-term investment.
Prices in gold have jumped roughly nine percent in 2023 so far with no signs of a slowdown as the risk of a recession remains to be predicted.
Gold prices are currently rising toward the $2,000 level as a result of the dollar’s recent weakness because of the Federal Reserve’s interest-rate increases.
The report from State Street cites the findings of a survey by SPDR ETFs.
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