There’s a common misconception that gold investment is best for retirees. Millennials often feel they can’t be part of the gold conversation, especially since they’re the faces of “grind culture.” After struggling to keep up with inflation and volatile economic changes that have been shifting throughout their lives, it just doesn’t seem like a feasible option for them. 


Gold can be intimidating for many millennials because it feels so unattainable–largely because they think of the tangible asset (i.e. gold coins or jewellery). However, when you consider how much gold has evolved from just bullion to a hands-free digital investment, it’s become much more attainable, even for younger generations looking to start investing.


When you understand gold’s history and legacy, you can demystify it and make it your strongest and most reliable asset. Once you’ve done your homework on how gold has performed in the last decade, you’ll learn that there’s a higher demand for it now than ever, and has even doubled in value. 


Gold isn’t just an asset for boomers or Gen X anymore, millennials now have the opportunity–and, more importantly, the digital-savvy–to own, invest in and sell it now too. More and more millennials feel empowered to include gold in their portfolios and reap its benefits.





5 reasons millennial investors are including gold in their portfolios


Now that millennials are becoming aware of their gold investment choices, they can see how this “safe haven asset” is a beneficial inclusion in their portfolio, to hedge against volatility in other markets, the economy and geopolitical circumstances. 


Here are five reasons millennial investors are starting to look into gold as an investment. 



1. Digital gold is easily accessible through fintech apps


Financial technology (fintech) and online applications make gold as liquid and accessible as shares. Gone are the days of having to weigh, value and store your physical gold–now you can simply view current prices, click and buy, all on your mobile phone. 


Because millennials are digital natives, fintech apps are right up their alley, making it all the easier for younger generations to invest. With just a few taps, you can invest in or sell your digital gold (which always corresponds to real gold) anywhere or on-the-go.


You don’t have to worry about the quality of the gold either. Partnering with reputable vendors ensures that any investor’s digital gold always has a high purity level, which should dissuade any worries about any physical challenges or limitations related to your investment.



2. Gold is a great hedge against inflation


Economies are easily affected by external factors such as geopolitical conflicts and natural disasters, affecting the value of money. Inflation is a concern, especially when circumstances leave the financial markets uncertain and volatile, as it can weaken your dollar and force you to pay more for less. 


However, gold is great at protecting your purchasing power and provides you with long-term returns despite inflation. It’s a strategic inflation hedge because of how stable and resilient it is and always has been. 


Historically, it’s performed well despite uncertainty because it’s independent of cash currencies and, unlike many shares that tend to follow dips, it isn’t sensitive to change and its long-term returns exponentially help you recoup what you spent on it in the first place. 


Not only is it a good hedge against inflation, it’s also a good safeguard against declining fiat currencies when things go south. Financial uncertainty doesn’t affect gold–in fact, gold sometimes even becomes more valuable when this happens. 



3. Gold diversifies your investment portfolio


Adding gold to your investment strategy is a great way to diversify your portfolio. Diversification is important because it protects your wealth against the risk of a downward slide. If you put all your eggs in one basket you can lose everything if that market falls. Some investments are more volatile than others although it’s not easy to tell which will slum and which will rise over the long-term. Allotting different money amounts across a variety of different assets helps reduce the risk, giving you a better probability of netting a tidy profit.


Gold is seen as a safe way to hedge against stock risks because it has a steady and slow climb that you and the banks can rely on.


You can diversify your portfolio with gold by investing in:


  • Gold coins
  • Exchange traded funds (ETFs)
  • Gold stocks



4. Gold is intrinsically valuable and always in high demand


Gold was melted and turned into coins and currency in Lydia in 650-490 BC by King Croesus–but it has held intrinsic value long before this, even in ancient civilisations.


As a metal that didn’t wear out and was easy to mould, gold has always been valued, especially once it was minted and became the metal of choice (along with silver) when compared to other commodities such as iron, copper and lead. 


Gold is sparse enough that it holds value but not so scarce that it’s unable to be circulated, which is the case with rarer metals like palladium and platinum. Although these metals are sturdy and flexible like gold, the value is actually limited because there’s not enough to easily go around. 


That incredible balance of being valuable but obtainable, soft yet durable is what gave gold its past value, which still holds true today.



5. Gold investments encourage financial inclusivity


Suited-up Boomers and Gen Xers are usually what people think of when they picture investors, but now that digitisation of currencies through blockchain has opened up the market, everyday millennials and younger investors can now be big players in the game too. 


Decentralised finance through cryptocurrencies, blockchain technology and inclusivity for those who aren’t able to access traditional financing has made the tokenisation of gold possible. Gold became available too, a seeming impossibility back then. 


Fintech platforms that encourage financial literacy also ensure that the average person can invest in different assets. Anyone and everyone can invest–not just people who are at the helm of the financial system. 


Accessing and investing in gold isn’t just for people in their “golden age” years. Thanks to digital-savvy platforms, anyone can take an interest in and participate in gold investment. 


Millennials and upcoming generations can feel confident and empowered to tap into the gold market in their own way, with their own funds, with a few taps of their phone.


If you want to learn more about how you can make your start in the gold game, visit our website.