Looking to understand individual investors’ perceptions of gold as an investment option? In this study, we shed light on the types of investors using gold in their portfolios and the top reasons they’re investing in this perceived safe-haven* asset.
*Assets may be considered "safe havens" based on investor perception that an asset's value will hold steady or climb even as the value of other investments drops during times of economic stress. Perceived safe-haven assets are not guaranteed to maintain value at any time.
20% of US investors who participated in our study currently have gold in their portfolios, according to our research. Among these investors, nearly half (47%) hold gold ETFs.
Do gold investors think that a gold allocation has improved the overall performance of their portfolios?
Among approximately 1,000 investors surveyed, we found that millennials averaged a 17% allocation to gold, while Baby Boomers and Gen X investors lagged behind with a 10% allocation.
Millennials Have More Positive Views of Gold Than Other Generations
|Average percent of my portfolio invested in gold||17%||10%||10%|
|I agree that it’s easy for investors to buy/sell gold||82%||56%||75%|
|I agree that the overall benefits of gold outweigh lack of yield||84%||76%||65%|
|I agree that gold ETFs are the best way to invest in gold||69%||35%||55%|
|I agree that it’s safer to buy gold ETFs than gold bullion||64%||35%||40%|
|I am likely to increase my investment in gold over the next 6-12 months||67%||44%||60%|
Source: State Street Global Advisors, as of April 19, 2023. *Note that the base size is under 30 for Baby Boomers (n=20).
In addition to generational insights, we’ve evaluated the benefits and purchasing considerations that rank highest among gold investors.
More than one-third of the investors we surveyed say they don’t have gold in their portfolio because they don’t know enough about the ways they can invest in gold.
Lack of Education Ranks as the Top Reason Investors Don’t Invest in Gold
And so we believe that education on how to invest in gold, as well as its potential benefits to a portfolio, can be critically important in the adoption of gold as an investment.
State Street Global Advisors, in partnership with Prodege and A2Bplanning, conducted an online study surveying a random sample of approximately 1,000 individual investors in the US with invested assets of $250,000 or more.
From the random sample, there were 95 individual investors who held a gold ETF(s). An augment of 10 individual investors who held a gold ETF(s) was performed to achieve a sufficient sample size for analysis.
The survey consisted of 14 close-end questions plus profiling questions and took individual investors 6-7 minutes to complete, on average.
Seven individual investors from the online survey who held a gold ETF(s) participated in a follow-up telephone interview. These participants represented the following:
All data was collected between March 24 and April 19, 2023.
1 Bloomberg Finance L.P. & State Street Global Advisors. GLD commenced operations on November 18, 2004. GLD AUM = $57.0 billion as of June 30, 2023.
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Investing involves risk including the risk of loss of principal.
This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
The views expressed in this material are the views of SPDR through the period ended August 18, 2023 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
Diversification does not ensure a profit or guarantee against loss.
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Investing involves risk, and you could lose money on an investment in each of SPDR® Gold Shares Trust (“GLD®” or “GLD”) and SPDR® Gold MiniShares® Trust (“GLDM®” or “GLDM”), a series of the World Gold Trust (together, the “Funds”).
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Investing in commodities entails significant risk and is not appropriate for all investors.
Important Information Relating to GLD® and GLDM®:
GLD and the World Gold Trust have each filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for GLD and GLDM, respectively. Before you invest, you should read the prospectus in the registration statement and other documents each Fund has filed with the SEC for more complete information about each Fund and these offerings. Please see each Fund’s prospectus for a detailed discussion of the risks of investing in each Fund’s shares. The GLD prospectus is available by clicking here, and the GLDM prospectus is available by clicking here. You may get these documents for free by visiting EDGAR on the SEC website at sec.gov or by visiting spdrgoldshares.com. Alternatively, the Funds or any authorized participant will arrange to send you the prospectus if you request it by calling 866.320.4053.
None of the Funds is an investment company registered under the Investment Company Act of 1940 (the “1940 Act”). As a result, shareholders of each Fund do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act. GLD and GLDM are not subject to regulation under the Commodity Exchange Act of 1936 (the “CEA”). As a result, shareholders of each of GLD and GLDM do not have the protections afforded by the CEA.
Shares of each Fund trade like stocks, are subject to investment risk and will fluctuate in market value.
The values of GLD shares and GLDM shares relate directly to the value of the gold held by each Fund (less its expenses), respectively. Fluctuations in the price of gold could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the gold represented by them.
None of the Funds generate any income, and as each Fund regularly sells gold to pay for its ongoing expenses, the amount of gold represented by each Fund share will decline over time to that extent.
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MiniShares® is a registered trademark of WGC USA Asset Management Company, LLC used with the permission of WGC USA Asset Management Company, LLC. GLD® and GLDM® are registered trademarks of World Gold Trust Services, LLC used with the permission of World Gold Trust Services, LLC.
For more information, please contact the Marketing Agent for GLD and GLDM: State Street Global Advisors Funds Distributors, LLC, One Iron Street, Boston, MA, 02210; T: +1 866 320 4053 spdrgoldshares.com