Gold historically has been a preferred investment choice, especially among investors interested in commodities. Why? As part of our Gold ETF Impact Study 2023, we uncovered the reasons behind its popularity and what investors are saying about it.
One-in-five survey participants currently have gold in their investment portfolios — on par with retail investors’ crypto currency ownership (21%).
The survey results suggest that those who hold gold and/or gold ETFs are more likely than other investors to invest in other commodities, particularly silver and crypto currency.
In this study, we discovered that more than half of surveyed investors (57%) do not currently have any of these commodities in their portfolios, including gold — which means there’s a large opportunity to review with investors the many ways to invest in commodities — from physical ownership to alternative investments to gold ETFs.
Among investors who currently have gold in their portfolios, allocations to physical gold are the leading investment choices — with a nearly even breakdown among physical gold ETFs (47%) and physical gold bullion (49%).
We found that surveyed investors who owned gold ETFs held other types of gold investments in their portfolios as well. Gold bullion topped the list, followed by gold mining stocks.
Among survey participants who invest in gold and those who hold gold ETFs, gold makes up 14% of their portfolios, on average.
More than half of survey participants who invest in gold indicated that they are likely to increase their investment in gold over the next 6-12 months (53%); 57% of surveyed investors who invest in gold ETFs indicated the same plan.
Notably, few survey participants plan to decrease their investment in gold over the next 6-12 months, suggesting gold’s perceived role in investors’ portfolios.
In our study, all surveyed investors were asked a series of questions pertaining to gold. Interestingly, 65% of surveyed investors said they believe gold may be seen as a safe haven* during times of market volatility. Other results were as follows:
Figure 7: Investors’ Viewpoints on Gold Allocations
Surveying All Investors Who Participated in This Study
Plus, a majority of survey participants agreed that the volatility in the stock market and inflation will continue for at least the next 12 months. And so, it may be a good time to introduce gold as a potential safe-haven* asset to clients worried about ongoing market uncertainty.
Nearly three quarters of surveyed investors who currently have gold ETFs in their portfolios said that the asset class has improved the overall performance of their portfolios.
Knowing that gold investors think highly of this investment, the question becomes: What benefits and purchasing considerations rank highest among gold investors?
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. Read more about the details.
1Bloomberg Finance L.P. & State Street Global Advisors. GLD commenced operations on November 18, 2004. GLD AUM = $57.0 billion as of June 30, 2023.
Important Risk Information
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.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
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”).
Commodities and commodity-index linked securities may be affected by changes in overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes, or political and regulatory developments, as well as trading activity of speculators and arbitrageurs in the underlying commodities.
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.
The World Gold Council name and logo are a registered trademark and used with the permission of the World Gold Council pursuant to a license agreement. The World Gold Council is not responsible for the content of, and is not liable for the use of or reliance on, this material. World Gold Council is an affiliate of the Sponsor of each of GLD and GLDM.
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