Information

Will Generation Z Embrace Bullion as an Investment Tool?

Generation Z is coming of age during times of significant technological advancement, unprecedented global challenges, and economic turbulence. As such, they’re poised to make their own distinct mark on the investment world. 

But could investing in bullion — historically acquired for its stability — become a key part of Gen Z’s financial strategies? 

This short article explores whether the inheritors of tomorrow’s wealth might turn to gold and silver as their preferred investment tool.

Rising Appeal Across All Adults

Professional bullion dealers from across North America, including noteworthy entities like Global Bullion Suppliers, have long touted the appeal of bullion as an investment vehicle. But this is merely a reflection of the general population’s beliefs.

In a Gallup poll from April 2023, a full quarter (25%) of Americans said that gold was the “best long-term investment” among real estate, bonds, CDs, stocks, mutual funds, savings accounts, cryptocurrency, and gold. While real estate is still the asset of choice among respondents, faith in housing as the “best long-term investment” dropped eleven percentage points from spring 2022 to 2023 — from 44% to 34%. 

Close on real estate’s heels is gold; 26% of survey respondents chose gold as ‘best’ from a long-term perspective. Gold hasn’t been held in such high esteem since 2013. 

Economic Anxiety and Distrust of Traditional Systems

The 2020 Deloitte Global Millennial Survey revealed that younger generations (including Gen Z) are deeply concerned about the state of the world and feel personally affected by income inequality and economic uncertainty. Bank of America’s 2020 Better Money Habits Millennial Report noted that young adults are saving more and are wary of economic downturns. 

According to the 2018 Edelman Trust Barometer, trust in financial institutions remains lower among the general population. Gen Z has experienced financial instability from COVID-19 and, while children, felt the impact of the 2008 financial crisis on their families. Their comfort with alternative financial services (such as cryptocurrencies) suggests a rising preference for non-traditional financial systems, including owning physical bullion.

Digital Investment Platforms and Diversified Portfolios

The internet has democratized information about investing. Gen Z is comfortable with using technology and mobile apps for managing their financial lives. The crucial option to invest in gold ETFs and gold stocks through digital apps can serve as introductory gateways to other kinds of bullion investing — such as owning physical bars or rounds.

A report by the National Association of Realtors Research Group and American Student Assistance indicated that young adults are becoming more familiar with investment topics through technology. A 2021 survey by E*TRADE found that Gen Z investors are the most active when it comes to checking on their investments.

The 2021 Schwab Modern Wealth Survey reported that Gen Z is investing at a younger age compared to older generations. Holding a longer-term outlook for an investment often involves diversifying portfolios to spread risk over time — and bullion has long been seen as a reliable way to ensure diversification.

Wealth Transfer

A significant wealth transfer is expected from Baby Boomers in the coming decades. According to one consulting firm, this transfer is projected to be over $30 trillion in the U.S. alone. 

Gold has traditionally been a part of investment portfolios and is often seen as a store of value during economic uncertainty. Past trends show an uptick in investment in assets perceived as stable or tangible post-inheritance. Younger generations are also likely to inherit not just assets but investment philosophies from their families. Those with a preference for gold could continue to favor it.

Conclusion

As Generation Z steps into the financial arena, their innovative spirit and tech-savvy approach could redefine investment norms. While it remains to be seen if they choose to maintain, increase, or liquidate these assets during generational wealth transfer, bullion may well become a cornerstone in the diverse portfolios of these rising investors.

Editorial Team

Passionate news enthusiast with a flair for words. Our Editorial Team author brings you the latest updates, in-depth analysis, and engaging stories. Stay informed with their well-researched articles.

Related Articles

Carlsberg Beer Prices in Bangalore Tuborg Beer Price in Bangalore Budweiser Beer Prices in Bangalore Top 10 New Year’s Eve Party Spots in Bangalore Old Monk Price in Bangalore: Your Guide to the Latest Rates Top 10 Christmas Movies to Watch This Holiday Season! AI Imagines Indian Cricketers As Santa Claus Best Jack Daniels Whiskeys and Their Alcohol Percentage