Why Younger Investors Are Turning to Gold in 2026

With the rise of cryptocurrencies and other digital assets, some may think of gold investment as being a thing of the past. However, research says it’s the opposite. Multiple studies from institutions like Bank of America and State Street Global Advisors are showing that younger investors, particularly Gen Z and Millennials, are embracing gold as an investment asset – and often at rates that outpace their older counterparts.

In this blog, we explore what the research says, why younger generations are turning to gold, and how to start investing in gold today.

The research: Younger generations are investing in gold more than ever

Recent studies suggest that up to 16% of Gen Zers currently own gold in some form, whether as physical bullion or through paper assets (gold exchange-traded funds or ETFs). The stats are even higher for U.S. Millennials, where 60% have already integrated gold into their investment portfolios (or 61% for high-net-worth individuals in that age bracket).

On the other hand, gold ownership rates amongst older generations are much lower, with Gen X at approximately 35% and Baby Boomers just 20%.

Some of these investments come from a transfer of assets, with more than 31% of Gen Z having already inherited gold or silver. For those buying themselves, the average investment in precious metals sits around $2,264. Some precious metals dealers now report that investors aged 20 to 39 account for a full one-third of all gold sales.

Reasons behind the shift

Research shows that younger generations are turning to gold as a way to gain long-term security. According to the Investment Barometer 2025 study by Deutsche Börse Commodities, gold has become the most popular asset class for the 25 to 34-year old demographic in Germany. When asked how they’d invest a hypothetical €25,000, more than a third of this group chose gold as their preferred vehicle, ranking it as being more trustworthy than real estate or even traditional savings accounts.

For these younger investors, gold serves several specific purposes. Approximately 29% view it as important for retirement, while 26% use it specifically for protection against inflation and crisis. Another key motivation, amongst Gen Z in particular, is sustainability, with 21% of investors aged 25 to 29 citing ESG (Environmental, Social, and Governance) criteria as a reason for their gold investments.

Research also shows a growing skepticism towards traditional markets. While older generations have largely remained confident in the ability of stocks and bonds to deliver, only 28% of older investors share the younger generation’s view that traditional assets may no longer be enough to provide above-average returns.

Gold allocations are increasing

This shift can be seen in the volume of capital being moved. Between 2023 and 2024, millennials nearly doubled their holdings from an average gold allocation of 17% to 29%. Overall, Gen Z and Millennial investors now hold an average of 17% of their total portfolios in alternative assets like gold, while investors over the age of 44 keep their allocation to alternatives at just 5%.

Digital access to gold is also surging, with the iShares Physical Gold ETC becoming the 12th most popular fund amongst 25 to 34-year-olds on major trading platforms.

Social media is aiding the change

On platforms like TikTok, the term ‘gold’ now has over 6.3 million posts, while Instagram hosts tens of thousands of conversations around gold investing. These platforms have demystified the buying process for the younger generation and made price discovery and premium calculations easy to understand – an important factor for a generation that values peer-to-peer education over institutional advice.

Why younger generations are investing in gold

So, what’s driving this sudden interest in gold? For many Gen Z and Millennial investors, the shift towards precious metals is a response to a decade defined by economic volatility and a shift in how they view traditional financial systems.

Hedging against economic shocks

Younger generations are the first in decades to have spent their entire adult lives navigating a series of ‘once-in-a-lifetime’ financial crises. From the 2008 recession and the COVID-19 pandemic to the current cost-of-living crisis, Gen Z and Millennials have become highly attuned to the effects of inflation and currency devaluation.

Research indicates that 42% of Gen Z investors cite hedging against inflation as their main reason for buying gold, with more than 55% expressing deep concern about the long-term impact of inflation on their future wealth. In the UK, where the cost of living has hit record highs, gold has become especially attractive for its relative stability and price surges over the last few years.

See: Exploring the Role of Gold as an Effective Hedge Against Inflation

Tangibility and security

Many young investors have grown up in a highly digital world, and rather than leading them away from physical assets, it has actually made them more attractive. Nearly half of both Gen Z and Millennials identify security and tangibility as being core drivers behind their gold purchases. These younger generations are looking for real assets that won’t disappear if they forget a password or a digital platform crashes.

Some experts believe that this desire for a physical asset actually stems from the popularity of cryptocurrencies. Younger generations have grown up seeing Bitcoin touted as ‘digital gold’, and they’re now looking for the physical equivalent to balance their risks.

According to a report by the Royal Mint, 64% of investors aged 16 to 25, who have experienced losses on high-risk digital assets, are now actively seeking out the historical growth and reputation of precious metals to stabilise their portfolios.

Keep Reading: Should I Invest in precious metals or cryptocurrency?

Mistrust of traditional systems

One of the main motivations for younger people is a growing skepticism towards government-supported and traditional financial systems. This is especially evident in the UK, where nearly half of Gen Z don’t have a workplace pension. Many young people feel that traditional assets like stocks and bonds can no longer deliver above-average returns, and this sentiment is shared by 72% of investors under 43.

Physical gold offers a level of independence that cannot be matched by pensions and savings accounts. Because it exists outside the banking system, it’s viewed as a type of insurance against crises. In fact, 29% of Gen Z now say that they trust gold more than traditional investments, signalling a broader cultural shift in what younger generations consider a reliable store of value.

Accessibility

Finally, it has simply never been easier to buy and store gold than it is today. With just the click of a button, investors can purchase gold online and have it shipped to their homes or stored in secure vaults. You can even buy gold through major retailers like Costco, who recently reported that gold bars were amongst its top-selling products.

Is it too late to start investing in gold?

With all that said, if you haven’t yet started investing in gold, have you missed the boat? The answer, according to industry experts, is a firm ‘no’! Even though gold’s price has surged in recent years, the fundamental reasons for the rally – global debt, central bank policy, geopolitical shifts – all remain in place.

Gold’s high prices are a reflection of increased demand and global uncertainty, both of which show no signs of fading. That said, it’s important to look at gold as a reliable store of wealth over time rather than something you can get rich quick off.

It’s likely that central banks across the world will continue to buy gold. Since the freezing of various international financial assets in recent years, countries have been aggressively moving towards a store of value they can physically secure within their own borders. This demand from governments will likely continue to support gold prices, or even drive them higher.

Read More: Why Central Banks Buy Gold

How to invest in gold

If you’d like to join the growing mass of young investors turning to gold, you generally have two options: buying physical bullion or investing in paper gold.

Physical bullion (bars and coins)

This is the most direct way to own gold, giving you a tangible asset that you own outright and exists outside traditional financial systems.

The benefits of investing in gold bullion include:

• No counterparty risk: Unlike cryptocurrencies or bank balances, physical gold doesn’t rely on a company or government to maintain its value
• Tangibility: You have full control over your investment and can store it where you choose
• Privacy: Physical gold is one of the few assets that can be held entirely outside the digital financial system.

There are two ways to invest in gold bullion: bars and coins.

Gold bullion bars are blocks of gold produced by government or private mints, designed purely for investment purposes. You can buy bullion bars in a range of sizes, from small 1 gram gold bars to larger 1 kg gold bars. They offer the lowest premiums per gram, making them the most cost-efficient way to invest in gold and the best option for large purchases.

Gold coins are issued by government mints and come in a range of different designs (e.g. Gold Britannia, Gold American Eagle, Gold Krugerrand). These coins carry a face value but their actual value is determined by their gold content. The standard size for a gold bullion coin is 1 oz, but you can also buy smaller fractional sizes (e.g. 1/10 oz or 1/20 oz).

Bullion coins are highly liquid and globally recognised, but they tend to carry slightly higher premiums compared to gold bars, making them less efficient for large purchases.

See More: Pros and Cons of Buying Gold Bars vs Gold Coins

Paper gold (ETFs and mining stocks)

If you’d like to gain exposure to gold prices without purchasing and storing the physical metal itself, another option is to invest in exchange-traded funds (ETFs) or gold mining stocks.

Gold ETFs, like the iShares Physical Gold ETC, track the spot price of gold. They’re highly liquid and can be bought or sold instantly through a standard brokerage account, just like stocks.

Investing in companies that extract or refine gold can offer leverage (e.g. if the price of gold rises 10%, the company’s stock may rise 20%). However, this comes with much higher risk as you’re betting on the company’s management and operational success rather than just the metal itself.

Although these paper options are highly liquid, they don’t offer the tangibility and lack of counterparty risk provided by physical bullion investments.

Keep Reading: Everything You Need to Know About Gold ETFs

Start investing in gold today

If you’re ready to start investing in physical gold, browse our selection of investment-grade gold bullion bars and coins from the world’s most trusted mints and refineries.

StoneXBullion is the UK and Europe’s leading precious metals dealer, and we offer fully insured, discreet delivery straight to your door. Start investing today.