Millennials Spearhead Gold Rush as Safe-Haven Appeal Soars

Millennials, once again, have emerged as the most ardent buyers of gold. Our 2024 Gold ETF Impact Study¹ reveals a striking development: Millennials have nearly doubled their gold allocations in just 15 months.

For the second consecutive year, millennials have more invested in gold than older generations. More than 60% of millennials now include gold in their portfolios. That’s significantly higher than the 35% of Gen X and 20% of boomers who hold gold.

What’s more, millennials' average gold allocation has soared from 17% in 2023 to 29% today, well above the 10% and 13% respective averages for boomers and Gen X.

Why the Millennial Gold Rush?

In our study, gold’s status as a safe-haven asset* was cited by investors as the main benefit to owning the precious metal.

But what, specifically, motivates a majority of millennials to add gold to their portfolios?

Our 2024 Gold ETF Impact Study points to several factors:

• Wealth Accumulation: Millennials made up nearly one-third of high-net-worth (HNW) investors in the study, or those with more than $250,000 in investable assets. We found that HNW investors have been more active buyers of gold than emerging affluent investors (with $50,000-$249,000).
• Access to Good Advice: More than 90% of HNW investors surveyed had discussed gold with their financial advisor, versus 54% in the lower wealth bracket. Of the advisors surveyed, the majority consistently recommended gold ETFs as the best way to invest in the precious metal. Most HNW investors who hold gold said their advisors explained gold’s portfolio benefits, as well as the various investment options, including gold ETFs.
• Tech and Financial Savviness: Millennials in the study held higher degrees of education than older investors and were more likely to use self-directed investing platforms than older generations.

HNW Investors Embrace ETFs, Education Needed for Everyone Else

Our study underscores the critical role of financial advisors in driving investor adoption of gold, particularly through gold ETFs. In a 15-month period when nearly all HNW investors reported having discussions about gold with their advisors, HNW gold ownership surged from 20% to 38% and average allocations went from 14% to 21%, according to the study.

The emerging affluent investor segment appears less informed about gold's potential as a portfolio diversifier and a hedge against stock market volatility. While around a third own gold, their holdings are primarily concentrated in physical bullion and collectibles. Notably, 36% of emerging affluent investors who work with advisors haven't discussed gold with them.

How Bright Is Gold’s Future?

Our study anticipates this knowledge gap to narrow as investors watch gold's impressive performance, driven by structural tailwinds. These include continued central bank gold purchases, China's economic and real estate woes bolstering domestic gold demand, and a general increase in institutional and retail investor interest in gold as a hedge against global economic and market risks.

With today’s record gold prices making headlines and increasing interest in its safe-haven qualities, we expect new potential investors to look to investment professionals for education and advice. And if the survey trends hold, that will likely result in greater adoption of gold ETFs going forward.

As the study revealed, those investors who use gold ETFs feel they are reaping the diversification and risk mitigation benefits they can bring to modern portfolios. Eighty-four percent of HNW and 77% of emerging affluent investors reported that their gold ETFs improved the overall performance of their investment portfolios.