Figures from The Royal Mint recorded a huge increase in the sale of precious metals during 2020, with a notably large uptick in millennial customers buying gold bars and coins. Is gold now gaining mainstream appeal?
A sharp rise in new gold investors
As the coronavirus pandemic took hold in 2020, the gold and silver market boomed, attracting thousands of new customers to the buying of precious metals as a safe haven to protect their financial future.
The Royal Mint reported that sales of small gold bars jumped by over 53% year-on-year during November and December 2020 as consumers sought out investment gifts for Christmas. During the full year, they also noted a 32% increase in younger customers buying gold, with many of those new investors being millennials (those born between 1980 and 2000).
Why are millennials turning to gold?
It’s not its lack of shine that may have previously had millennials look away from gold as an investment option, it may well instead have been a lack of excess capital, as well as viewing the precious metal as more of a ‘luxury’. A first house, car, or university debt may well have been a priority before looking to spending their hard-earned cash on gold. However, previously popular with older investors, gold now appears to have spread its allure to the younger generation. No matter how heavy a person’s financial commitments are, we all know that it’s always worth putting at least a little something aside for the future – and with millennials working for a long time yet, they are now looking at savvy ways to protect their long-term financial future.
Global turbulence due to the Covid-19 pandemic in 2020 saw the popularity of gold increase significantly, with the yellow metal making headlines across the world - gold prices rocketed whilst other markets crashed. Younger investors saw an advantage and took it. Many of those may have been hit hard by the pandemic, losing their jobs, or having to move back in with their parents, and have opted for gold to provide them with some security.
As the generation who is used to making things happen at the touch of a button, a large drive for millennials choosing to invest in precious metals looks to be technology. Thanks to the internet, gold has never been more accessible. As many other investment options require investors to lock their money away for long periods of time, new investors have also noticed the fluidity and practical immediacy of buying and selling gold. In uncertain times, precious metals have that touch-of-a-button convenience.
Gold for the future
This last year has seen people flock to precious metals like never before due to global uncertainty. Technology now makes it easier than ever to access gold, at the click of a button, making it more mainstream than ever. Yet it is worth remembering that people have put their trust in the yellow metal for thousands of years for a reason: gold is real. A tangible asset you can see, hold, and feel. A currency that has proven itself time and time again as a way to hedge against the unknown. And we can pretty much guarantee it will still be there down the line as a store of value, as it has been for thousands of years.
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.