Covid, the war in Ukraine, the explosion of energy prices... Uncertainty reigns supreme over the global economy in general, and even more so over the young generations in search of opportunities, stability and security for the future.
A certain loss of confidence in the System is evident.
The middle class is the first victim of galloping inflation and a possible tax rage.
An IFOP poll (an international polling and market research firm) in December 2021 revealed that ¾ of young people aged 18 to 30 are worried about the future and 42% think that the world will experience a period of regression.
And the situation in 2022 is not much better...
Young people are turning to crypto-currencies, but they are also discovering the value of owning physical gold in their portfolios to offset the high risk that comes from very high volatility on cryptos while protecting themselves from inflation and widespread uncertainty.
Young people who are less risk-averse and prefer real estate can also turn to gold given the concerns and worries that are also beginning to emerge in the real estate sector: rising interest rates, compulsory energy renovations, rising prices of materials, declining number of credit borrowing, taxation, rent grids...
And today, we live in the information age. The Internet has revolutionized access to information and knowledge. As a result, gold is no longer an investment reserved for older generations, insiders or experienced investors.
Gold is no longer an investment reserved for the wealthy.
At GFi GOLD, the possibility of buying online is attracting younger generations of customers. They usually buy 5 to 10 pieces worth 300 to 400 euros, while the average buyer spends 6,000 to 30,000 euros.
On the other side of the Atlantic, a 2020 survey by MagnifyMoney found that one in six consumers invested in gold or other precious metals in Q2 2020. The survey of more than 1,000 Americans adds that nearly a quarter are seriously considering buying gold.
According to the researchers, Millennials, ages 24-39, account for 21% of these pandemic purchases. They are closely followed by members of Generation Z (ages 18 to 23) and Generation X (ages 40 to 54).
In China, Millennials and Generation Z purchased 20% of jewelry sold in malls in 2021, a 100% increase from 2020, when young people accounted for only 10% of total purchases.
This quest for security and financial independence is becoming more prevalent among young people.
This was confirmed by Mr. He Lin from the Digital Economy Research Institute of Zhongnan University of Economics and Law. Today, young people would be much more pragmatic and put their money where it will retain its value.
In India too, more and more Millennials have realized the importance of hedging against economic uncertainties. They now see gold as an essential part of their financial planning. For them, gold is no longer a measure of wealth, but a means to stability, liquidity, and even higher returns.
A World Gold Council study from September 2022 indicates that the Indian online jewelry market has grown rapidly over the past few years, driven by demand from Millennials, increasing internet penetration and rising smartphone sales.
While the number of platforms offering gold jewelry has increased, Metals Focus estimates that the share of online sales remains in the range of 3 to 5 percent of total jewelry sales value. Most sales are made by consumers between the ages of 18 and 45.
With the uncertain geopolitical situation and the economic crisis, the demand for gold is expected to increase, which should give support to the gold price in the near future.
We remind you that gold is not primarily used to speculate on its price, but it offers the best option to diversify one's wealth while owning an asset that, historically, values itself very well usually in times of crisis.
And to help young (and not so young) people to own gold easily and safely, GFi GOLD launched GFi SAFE in April 2021: an ultra-secure safekeeping service independent of the banking system. The advantage is that customers can now buy, store and sell their physical gold without having to go anywhere.
The GFi team
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