We’ve previously written in our blog about how middle-aged investors are the age group most likely to own gold. However, according to a new survey from the World Gold Council, this might have to do more with access to disposable income than anything else. When it comes to trust in the yellow metal, 56% of 18 – 24 year olds replied that they trust gold more than fiat currencies. This is the same amount as among 55 – 65 year olds. With an 18,000 person sample size across China, India, North America, Germany, and Russia, this is significant. In fact, the revelation that millennials trust gold makes for 1 of 5 of the Council’s main research takeaways.

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“56% of 18 – 24 year olds replied that they trust gold more than fiat currencies”

According to the council, these 5 points are:

1. Gold has a strong reputation as a safeguard: 67% of retail investors surveyed believe that gold is a good safe haven against inflation and currency fluctuations, with 61% trusting it more than fiat currencies.

2. New Consumers are curious, but lack trust: While 48% of investment consumers and 28% of jewelry consumers who have never bought gold before stated that they were open to buying it, they cited a lack of trust as a main barrier in doing so. The World Gold Council believes that eliminating counterfeits and being more transparent about purity could help build trust.

3. Young People Like Gold: As we stated already, 56% of 18 – 24 year olds surveyed replied that they trust gold more than fiat currencies. This matches the statistics for the 55 – 65 year old brackets. It also only falls behind the top scoring 33 – 44 year old bracket by 8%. In fact, older millennials between 25 – 34 years old are the second highest scoring age bracket at 62%.

The survey does note potential misgivings among Gen Z jewelry buyers in China. While 88% of 55 – 65 year old  fashion buyers in China believe gold brings good luck, only 40% of 18 – 24 year olds believe the same.

4. Technical Gold Distribution Needs More Work: While tech-savvy players such as Alpha Bullion are constantly innovating the gold industry, online gold infrastructure as a whole needs more work. Global retail investors currently only buy 9% of their gold coins and 6% of their gold jewelry online. Meanwhile 25% use gold-backed ETFs.

5. Gold needs to get the word out: 66% of potential consumers surveyed replied that they don’t have the necessary knowledge to buy gold. The council states that confusion about finding gold or the benefits of owning gold keeps potential buyers from choosing it. It also affirms that the gold market needs to make its ethical standards more present. While not a current issue, the council advises the industry to take steps using TV, print, and social media to secure trust from the next generation.

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“the gold market is currently in healthy shape”

Overall, the World Gold Council’s report states that the gold market is currently in healthy shape. Gold is the third most consistently popular investment, with 46% of global retail investors choosing to buy gold. This is just behind life insurance at 54%, with only savings accounts at 78% showing a significant lead.

“The retail gold market is healthy, with gold being considered a mainstream choice,” World Gold Council CEO David Tait says in the report. “But what really excites me is the untapped part of the market: those people who have never bought gold but are warm to the idea of doing so in the future.”

Tait says that only trust and awareness stand in gold’s way. Bullion Exchanges is proud to provide customers with gold they can trust, at the lowest premiums on the market. Bullion Exchanges is also commited to keeping customers aware of that state of the industry with our blog and newsletter. Sign up for an account with us for more.

Click here to read the full World Gold Council report.

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