Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
A growing number of young investors, particularly millennials and Gen Zers, are investing in gold.
The Numbers
- Nearly half of wealthy investors under 43 own physical gold.
- 45% of the same demographic are interested in holding gold.
- Millennials allocate an average of 17% of their portfolios to gold.
- Boomers and Gen X both allocate an average of 10% to gold.
Why Investors Should Care
This shift mirrors a broader trend as investors across the board actively seek portfolio diversification and stability amidst increasing economic uncertainty. These young investors are following in the footsteps of the most knowledgeable and wealthy investors in the world.
Central banks are buying gold at record rates as the dollar’s dominance wanes, threatening to destabilize the global economic order. As traditional markets falter, investors are shifting to gold as a safe-haven asset due to its ability to keep pace with inflation and the potential for appreciation.
Market Impact
Gold prices have experienced sustained and record-breaking growth on the back of increasing demand. Currently, the spot price hovers above $2,400/oz, marking nearly a 24% since the beginning of the year.
Expert Insights
Liz Young Thomas — SoFi’s head of investment strategy — points to gold’s recent record-setting growth as sparking young investors’ interest.
“We are seeing returns we normally don’t see in such a short period of time. Naturally, when assets have strong returns, younger audiences start to perk up.”
Thomas also attributes the yellow metals growing popularity to increased exposure and greater accessibility as national retailers such as Costco dip their toes in the precious metals industry.
What’s Behind the News?
Americans are increasingly aware of their investments given the deteriorating economic environment. The skyrocketing national debt, high interest rates, stubborn inflation, and currency deflation all threaten to erode hard-earned savings and retirement plans. Younger Americans are particularly attuned to these economic threats as the delayed consequences most likely fall in their laps.
Future Outlook
Gold’s rising demand and confident price performance have forced experts to raise their price predictions. As young investors continue seeking out alternative investments, the yellow metal’s popularity is only expected to increase. Plus, gold’s resurgence as a staple asset is leading to more availability and more personalization options.
Actionable Takeaways
Consider Diversifying
Investors are encouraged to optimize their portfolio diversification to protect their nest eggs from inflation, currency devaluation, recessions, and other economic pressures.
Explore Physical Gold
Not all gold assets are created equal. Physical precious metals offer more protection than their paper counterparts due to their inherent value, tangible nature, and privacy.
Talk to an Experienced Advisor
Holding physical gold is a timeless investment strategy, but it should be aligned with your personal goals. Speaking with a precious metals advisor can help you make the most of these worthwhile assets.
Interested in Learning More About Investing in Gold?
The precious metals advisors at Scottsdale Bullion & Coin would be happy to answer your questions and devise a personalized investment strategy. Contact us by calling toll-free at 1-888-812-9892 or using our live chat function.