Amidst Inflation Fears, Investors Turn to Gold

Amidst Inflation Fears, Investors Turn to Gold

Time Stamp: July 31, 2023 7:01 PM
Amidst Inflation Fears, Investors Turn to Gold PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Concerns
about inflation and financial stability have prompted American retail investors
to explore alternative assets. Online searches and surveys reveal a growing
interest in precious metals as a secure alternative to traditional investments
such as stocks, bonds, and cash.

According
to a study exclusively shared with Finance Magnates, 83% of millennials
are skeptical about the economy’s current state. For this reason,
they are looking for new forms of investment and savings, including gold.

Precious
metals, traditionally viewed as nearly inflation-proof, have seen a surge in
popularity. In particular, online searches for ‘how to invest in gold and
silver’ have soared by 656% in the past year.

Searches
for ‘self-directed precious metals IRA’ also increased dramatically by 860%,
while searches for ‘best cryptocurrency to buy’ fell by 72%. These trends
suggest a shift in the investment landscape as people seek to diversify their
portfolios and safeguard their holdings against depreciating values.

Investment
patterns aren’t only visible through search volume data. In a survey of 1,027
Americans, traditional investments such as stocks, bonds, and cash were viewed
skeptically by 63% of respondents due to inflation fears. Conversely, gold
topped the list as the most trusted alternative asset during times of
inflation.

“Our findings bolster the case for gold as the
heavily-trusted, primary alternative asset of choice during this inflationary
period. Whereas gold is today’s most trusted alternative asset; wine,
collectibles, and hedge funds are Gen Z’s least trusted alternative assets
(respectively),” Jeff Smith, the Senior Content Manager for Retirement Living, commented

The Rising Tide for Crypto,
Collectibles and Gold

Notably,
one in four respondents reported an increased interest in alternative assets
following the collapse of Silicon Valley Bank in March 2023. Among those who
had made investments in the past six months, a third were in alternative
investments, with cryptocurrency being the top choice (despite declining search
engine interest in cryptocurrencies ).

When
dissecting these results by demographics, men were found to be 91% more likely
than women to have made alternative investments in the past six months.
However, women were 35% more likely to express skepticism about traditional
investments in the current economy.

Interestingly,
Gen Z showed the least skepticism towards new traditional investments, yet 30%
of this group was more interested in alternative investments. Meanwhile, nearly
half (43%) of millennials reported making alternative investments in the past
six months.

“Our data
raise several intriguing possibilities. For instance, the findings suggest that
the majority of Gen Z — three in five — feel skeptical about investing given
the current state of the economy. Yet, 83% of Gen Z reported investing in the
last six months. We suggest this apparent tension might be motivated by fear of
not having enough to survive given the current cost of living in certain areas,
the desire to buy or finance a first home, or a cultural push toward earlier
retirement,” Smith added.

Inflation Changes Investment
Habits

With the
specter of inflation causing financial stress for many Americans, diversifying
investment and retirement accounts has become a pressing matter. The rise in
interest towards precious metals and cryptocurrency highlights the shift in
investment strategies.

According
to those surveyed, alternative investments are more tangible assets than
traditional investments at this point, and work well as a store of value,
portfolio diversification and a hedge against record-high prices.

The above
results are based on Retirement Living’s study that has delved into American
investment trends by analyzing search volume data from the past 12 months and
surveying over 1,000 Americans.

Concerns
about inflation and financial stability have prompted American retail investors
to explore alternative assets. Online searches and surveys reveal a growing
interest in precious metals as a secure alternative to traditional investments
such as stocks, bonds, and cash.

According
to a study exclusively shared with Finance Magnates, 83% of millennials
are skeptical about the economy’s current state. For this reason,
they are looking for new forms of investment and savings, including gold.

Precious
metals, traditionally viewed as nearly inflation-proof, have seen a surge in
popularity. In particular, online searches for ‘how to invest in gold and
silver’ have soared by 656% in the past year.

Searches
for ‘self-directed precious metals IRA’ also increased dramatically by 860%,
while searches for ‘best cryptocurrency to buy’ fell by 72%. These trends
suggest a shift in the investment landscape as people seek to diversify their
portfolios and safeguard their holdings against depreciating values.

Investment
patterns aren’t only visible through search volume data. In a survey of 1,027
Americans, traditional investments such as stocks, bonds, and cash were viewed
skeptically by 63% of respondents due to inflation fears. Conversely, gold
topped the list as the most trusted alternative asset during times of
inflation.

“Our findings bolster the case for gold as the
heavily-trusted, primary alternative asset of choice during this inflationary
period. Whereas gold is today’s most trusted alternative asset; wine,
collectibles, and hedge funds are Gen Z’s least trusted alternative assets
(respectively),” Jeff Smith, the Senior Content Manager for Retirement Living, commented

The Rising Tide for Crypto,
Collectibles and Gold

Notably,
one in four respondents reported an increased interest in alternative assets
following the collapse of Silicon Valley Bank in March 2023. Among those who
had made investments in the past six months, a third were in alternative
investments, with cryptocurrency being the top choice (despite declining search
engine interest in cryptocurrencies ).

When
dissecting these results by demographics, men were found to be 91% more likely
than women to have made alternative investments in the past six months.
However, women were 35% more likely to express skepticism about traditional
investments in the current economy.

Interestingly,
Gen Z showed the least skepticism towards new traditional investments, yet 30%
of this group was more interested in alternative investments. Meanwhile, nearly
half (43%) of millennials reported making alternative investments in the past
six months.

“Our data
raise several intriguing possibilities. For instance, the findings suggest that
the majority of Gen Z — three in five — feel skeptical about investing given
the current state of the economy. Yet, 83% of Gen Z reported investing in the
last six months. We suggest this apparent tension might be motivated by fear of
not having enough to survive given the current cost of living in certain areas,
the desire to buy or finance a first home, or a cultural push toward earlier
retirement,” Smith added.

Inflation Changes Investment
Habits

With the
specter of inflation causing financial stress for many Americans, diversifying
investment and retirement accounts has become a pressing matter. The rise in
interest towards precious metals and cryptocurrency highlights the shift in
investment strategies.

According
to those surveyed, alternative investments are more tangible assets than
traditional investments at this point, and work well as a store of value,
portfolio diversification and a hedge against record-high prices.

The above
results are based on Retirement Living’s study that has delved into American
investment trends by analyzing search volume data from the past 12 months and
surveying over 1,000 Americans.

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