Millennials have significantly higher affinity to gold than previous generations

A study conducted by the State Street Global Advisors of the world’s fourth-largest asset management firm, State Street Corporation, has found that US investors of the Generation Y – also known as Millennials – are significantly more committed to gold as an investment instrument than the two prior generations, Generation X (Gen X) and Baby Boomers. According to the Gold ETF Impact Study 2023, Millennials on average hold 70 per cent more gold than the two previous generations, with 17 per cent of their portfolios invested in gold.

67 per cent of Millennials plan to increase their gold investments

Of the 20 per cent of respondents invested in gold, Millennials also led with 67 per cent regarding plans to increase their gold allocation within the next six to twelve months. Only 44 per cent of Gen X investors and 60 per cent of Baby Boomers were also planning to do so. Both generations had an average of 10 per cent of their funds invested in gold at the time of the study. At 84 per cent, Millennials also led the way in believing that the benefits of gold outweigh the downside in terms of lack of interest. Among Gen X respondents, 76 per cent shared this view, compared to only 65 per cent of Boomers.

Attitudes towards gold-backed securities are also much more positive

When asked whether they prefer physical gold or gold-backed ETFs, 69 per cent of Millennials cited ETFs as the best way to invest in the precious metal. Only 35 per cent of Gen X and 55 per cent of Baby Boomers shared this view. Among all respondents, 49 per cent were invested in gold bars and 47 percent in gold-backed ETFs – an almost equal distribution. In the Eurozone and especially in Germany, the current situation differs: The majority of gold investors prefer physical gold, although ETCs such as Xetra-Gold are 100 per cent backed with gold bars. Also, investors can have their Xetra-Gold shares converted into physical gold at any time.