Why Education Is Essential for Gold Investors
In our Gold ETF Impact Study 2023, we found that a significant number of the investors we surveyed lack knowledge about gold. Take a deeper dive into these findings — and access gold insights and resources that can help educate investors interested in a gold allocation.
Investors Who Don’t Own Gold Lack Familiarity with Gold ETFs
Among individual investors surveyed who do not hold gold ETFs, only 15% say they’re familiar with gold ETFs. And 63% say they are unfamiliar with gold ETFs.
When we asked the same question of those who have gold in their portfolios but don’t hold gold ETFs, familiarity with this type of ETF was more evenly split.
This suggests that without the right education, investors will stick to the investments they know. To help investors expand their horizons and understand gold’s potential benefits, financial advisors (FAs) should engage investors in conversations about the asset class.
FAs Play a Critical Role in Whether Investors Choose Gold
Among survey participants with a financial advisor, significantly more of those who invest in gold and/or hold gold ETFs have discussed investing in gold, been informed about investing in gold, and been recommended to invest in gold by their FAs in comparison to the total investors we surveyed.
Figure 2: An FA’s Impact on Investors’ Ownership in Gold
We believe that the conversations FAs facilitate and the education they provide on gold can potentially impact investors’ decisions to invest in the asset class.
At the same time, 37% of surveyed investors with gold ETFs do not have a financial advisor and, instead, access gold ETFs through trading platforms and self-directed brokerage accounts.
The Number One Reason Investors Don’t Invest in Gold: Lack of Knowledge
More than a third of surveyed investors (36%) say that they don’t have gold in their investment portfolios because they don’t know enough about the ways they can invest in gold.
Figure 4: The Top Reasons Investors Don’t Invest in Gold
Without Education, Gold Adoption Could Lag
Among survey participants who do not have gold in their portfolios, only 32% say they understand what influences the price of gold and less than half (44%) think it’s easy for investors to buy and sell gold.
We believe that this gap in knowledge may heavily impact the fact that only 11% of survey participants who do not currently have gold in their portfolios say they are likely to invest in gold in the next 6-12 months. More than half of the investors we surveyed (52%) are not likely; approximately one-third (37%) are unsure.
The good news: If financial advisors can facilitate meaningful conversations around the potential benefits of adding gold to a portfolio, the percentage of investors likely to invest in gold could increase significantly over the next 6-12 months.
Equip Yourself with Gold Educational Resources from SPDR
Our educational content on gold is client ready and provides answers to investors’ most complex questions about this asset class.
Gold as a Strategic Asset Class
Investors often use gold tactically in their portfolios, but its function as a core diversifying asset during a variety of business cycles may demonstrate that gold can potentially play a long-term strategic role.
Find the Right Gold for Your Portfolio
Investors have several options when looking to gain exposure to gold. Understanding the different gold investment vehicles can help investors to determine which option is best suited to their needs.
Comparing Gold to Other Alternative Investments
Gold is not just another commodity. It brings potential benefits that may make gold stand out as a unique and independent asset among other commodities and alternative investments.
ETF Education
What is an ETF? How are ETFs created and traded? How can you use ETFs in a portfolio? Learn more in the SPDR ETF education center, covering everything you need to know.
Invest in SPDR Gold ETFs
Work With a Global Leader
When we launched SPDR® Gold Shares (GLD®) in 2004, it was the first US gold-backed ETF. GLD’s arrival made it convenient and cost effective for investors to have gold exposure in their portfolios. Since then, we’ve launched the low-cost SPDR Gold MiniShares® (GLDM®) and built a dedicated gold strategy team to help investors understand how gold can help their portfolio.
About the Study
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.