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If retail gold investors are stereotyped, chances are those making the generalizations would assume bullion buyers are older, risk-averse folks. Commercials on cable news channels featuring pitchmen like Dr. Phil and Pat Boone don’t do anything to dissuade those notions.
Nor the pitches themselves – many of which center on the yellow metal being a protective asset during times of economic calamity or when there’s a run on the banks. Seriously, there are multiple gold advertisements mentioning the possibility that things could get so bad folks won’t be able to get their money out of a bank.
Conversely, the stereotypical bitcoin investor is young. A study released in January by NFTevening indicates that investors between the ages of 18 and 43 – Gen Z and millennials – have the highest percentages of crypto ownership. For those in the 18-27 demographic, it’s 42.3%. For millennials, it’s 37.4%.
Even with gold notching a series of record highs this year and the current market environment conducive to bullion ownership, it’s unlikely many young investors own gold in percentages that are anywhere close to their crypto allocations and many more may be missing out on bullion altogether.
Bitcoin and Gold Doesn’t Need to Be a Fight
Bitcoin has long been referred to as “digital gold” and that nickname has stoked rivalry between the two assets, particularly among younger investors. In fact, a recent poll by deVere Group indicates nearly three-quarters of global investors in the 24-45 age range prefer bitcoin over bullion.
That preference has built as prices for both assets have surged, but what many younger investors may be glossing over is that the catalysts for those increases are, in some cases, identical.
““The momentum behind Bitcoin among younger investors is undeniable,” says deVere CEO Nigel Green. “They see it as digital gold – borderless, accessible, and aligned with the future. But gold is far from obsolete. In fact, it’s surging, and there’s no clearer sign of that than the silent buying spree by the world’s monetary authorities.”
Central bank purchases are helping gold. On the other hand, while corporate and sovereign adoption of bitcoin is improving, it still has a long way to go as highlighted by the recent rejections by shareholders of some big-name companies of proposals calling for those firms to convert some cash holdings to bitcoin.
Rivals? Probably Not.
Whether it’s in business or sports, rivalries are born because there are two competitors looking for supremacy in one space. However, that’s not necessarily true of gold and bitcoin. Owing to the fact gold and bitcoin are often framed as competitors, younger investors often view the two in either/or terms.
They might want to alter that thinking because gold and bitcoin address different issues and can coexist in the same portfolios, particularly when advisors help clients get the allocation size right.
“This generation is right to question the old models. But diversification is timeless,” adds Green. “Having uncorrelated assets in your portfolio is how you build true resilience. Gold and Bitcoin together offer that balance.”
Related: Women Want Financial Empowerment. Advisors Should Help.