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Although it doesn’t deliver income, gold is often viewed as an asset class favored by older market participants. Some anecdotal evidence confirms as much.
Watch enough cable news and one is bound to see at least a few commercials for various companies offering gold investments. The median ages of CNN, Fox News and MSNBC views are 67, 69, and 70, according to the Wall Street Journal.
Conversely, the six largest gold exchange traded funds all have well over $1 billion in asset sunder management and number seven is close to that level. Obviously, a lot of that is professional money, but various studies confirm ETF usage is higher among younger investors than baby boomers, indicating some of the cash in gold ETFs arrived there via youthful market participants.
With gold ranking as one of this year’s best-performing asset classes and expectations for another solid performance in 2025 in place, advisors shouldn’t be afraid to mention bullion to younger clients. Data indicate they should already be doing so.
Millennials Are Gold Enthusiastic
As noted by State Street’s recent 2024 Gold ETF Impact Study, millennials doubled their gold allocations over the past 15 months. Believe it or not, that demographic is now the largest gold owner among retail investors and by a wide margin.
(Chart Courtesy: State Street Global Advisors (SSGA))
Among the reasons for gold’s popularity among millennials are rising wealth in the demographic and their experiences with turbulent market settings, such as the global financial crisis, the coronavirus bear market and soaring inflation in 2022-23.
“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),” notes State Street.
Advisors Helping Boost Millennial Gold Adoption
Apparently, advisors are already discussing gold with affluent clients and they’re using ETFs as the tool of choice for bullion access.
“More than 90% of HNW investors surveyed had discussed gold with their financial advisor, versus 54% in the lower wealth bracket,” adds State Street. “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.”
Add to that in the aforementioned 15-month period, nearly all of the high-net-worth investors queried said they discussed gold with their advisors during that span. However, there’s opportunity for advisors with younger gold investors because many need and want more education and guidance.
“The emerging affluent investor segment appears less informed about gold's potential as a portfolio diversifier and a hedge against stock market volatility,” concludes SSGA. “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.”