More Wealthy Investors Are Adding Gold To Their Portfolios—Here’s Why | Global News Avenue

Investors have bet on gold this year as they hedge against uncertainty in the stock market and economy.

Surveys conducted in July and August by asset manager State Street Global Advisors showed that about 38% of investors with $250,000 or more in investable assets said their portfolios There is gold in it. This is up from the 20% claimed to have gold exposure in spring 2023.

The average allocation to gold has also increased significantly, from 14% in 2023 to 21% in 2024, according to the State Street Bank survey.

Why are investors betting on gold?

golden reputation haven Assets during periods of stock market volatility are the largest perceived assets investment benefit About 43% of the respondents said. Other major reasons include using gold as a source of long-term returns and as a hedge against inflation.

Concerns about the economy and uncertainty about the U.S. presidential election have led to some volatility in the stock market. This makes investors nervous and makes them consider more conservative investments.

Gold is most popular among the younger generation, according to State Street Bank. More than 60% of Millennials say they have invested in gold, compared with 20% of Baby Boomers.

Gold investments are paying off right now

Retail investors have poured billions of dollars into the precious metal in recent months as prices have climbed. Multiple all-time highs. Spot gold prices have risen nearly 26% this year, slightly higher than the S&P 500 Index.

The majority of respondents to the State Street survey who invest in gold (54%) said they hold gold bullion or physical gold, up from 49% in spring 2023. The second most popular way to invest in gold is through gold exchange-traded funds (44%), followed by gold collectibles (39%) and gold mining stocks (31%).

At retailers such as Costco (cost), gold and silver bars have been selling well both online and in-store over the past quarter. After gold ETFs pulled back earlier this year, retail investors poured $1.91 billion into gold ETFs in September alone.

StateStreet Managed SPDR Gold Stocks (GLD), the oldest and largest gold ETF in the United States, with assets approaching $72 billion as of Friday’s close.