Concerns about financial security are a tale as old as capital. One pressing issue is the potential depletion of Social Security funds, which could run out by 2034 if current trends continue. This looming uncertainty is prompting many, especially younger generations, to explore alternative investment strategies to secure their financial futures. While cryptocurrencies have gained popularity as a modern investment option, their inherent volatility and associated risks have left some investors searching for more stable alternatives.
Unlike cryptocurrencies, precious metals have long been considered safe havens during economic uncertainty. This perception is particularly appealing to Gen Z investors, who are beginning to shape the future of the investment landscape.
Gen Z’s investment habits
Cybermetals, a division of JM Bullion, recently conducted a survey exploring American Gen Z’s perspective on investing in precious metals like gold and silver. The survey of over 1,000 Gen Zers revealed that over 1 in 3 (36%) are interested in investing in gold, with 42% citing it as a hedge against inflation. This interest is likely influenced by the current economic climate, where inflation remains a pressing concern for over half of Gen Z (55%).
The survey also found that 10% of Gen Zers are already investing in gold, primarily because they view it as a secure investment. Additionally, 29% trust gold, silver, and other precious metals more than traditional investments. Despite this trust, stocks remain the most popular investment among Gen Z, with 43% investing in them, followed by 401(k)s (26%) and Roth IRAs (24%).
Gen Z’s affinity for tangible assets is further reflected in their investment choices. Over 3 in 10 find gold bullion appealing, and 15% plan to invest in gold coins, bars, or ingots in the next year. The appeal of gold extends beyond traditional forms, with necklaces, rings, and earrings being popular investment pieces. Interestingly, nearly 1 in 5 Gen Zers would prefer to inherit gold or silver rather than money, highlighting their preference for physical assets
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