The World Gold Council hit back at the high-profile Drop Gold campaign, arguing investors see crypto as risky and speculative. But do the figures support that assertion?
The council released the results of a survey of 18,000 people in India, China, the U.S., Germany, Canada, and Russia designed to provide “valuable insights into what, how, why and where people buy gold… [in] the wider context of retail investment and luxury goods in general.”
The research found that almost half of interviewed retail investors had bought gold at some point in their lives.
Courtesy World Gold Council, Retail investment assets by percentage
More than half of investors trusted gold more than “currencies of countries.” Trust in gold was strongest in India at 75 percent.
Courtesy World Gold Council, Why retail investors trust gold
Over 60 percent of investors trusted gold for its store of value properties. Almost half of the respondents said they would buy gold as an investment in the future. However, that number drops to 34 percent among those aged 18-38. The council concluded that the demographic differential merely shows that younger generations are “less risk-averse and less likely to adopt a long-term approach to investing.”
The council emphasized that 18 to 24-year-olds took a short-term approach to investing. According to the report, they were more likely to say “I don’t really believe in investing for the long term, I want to live for today.”
Highlighting the loyalty of gold investors, the industry’s market development organization found that around 60 percent of investors who had bought gold in the past would do so again. That figure contrasted with findings for cryptocurrencies, stocks, and funds — all at around 40 percent.
Courtesy World Gold Council, Loyalty to gold and other investment classes
Gold vs. Crypto
The World Gold Council is an industry advocacy organization. It has an interest in promoting gold’s value as an investment….