In case you haven’t heard, Millennials aren’t investing. Only 1 in 4 Millennials has any semblance of a stock portfolio, and if they do, many times it’s because they were granted stock - thanks to the tech sector’s startup culture. In many cases, Millennials aren’t too sure what to do with their stock in the first place. It’s not easy to jump into the stock market and make the right kinds of trades, to know when to buy, to know when to sell. There’s a lot to consider.
As a broad generalization, the Millennial generation lacks market knowledge, and they aren’t showing an interest in investing like prior generations prior have. For many, parting with cash, with a future profit in mind, is a hard thing to do.
There are a lot of factors at play here. The biggest being, Millennials just don’t have the cash to invest. Market volatility doesn’t offer a stamp of “sure thing” to someone who’s likely got a hundred thousand dollars or more in college debt and a low paying job, to boot.
But, it isn’t all doom and gloom -- should an enterprising young person want to invest, there’s a market they can jump right into and feel immediate impact. The highs and lows are easy to follow, while investment returns can reap killer benefits.
That market is gold. Gold has been lauded for centuries around the world. It ain’t the new kid on the block when it comes to investment value. It doesn’t take an expert to explain why gold is considered the world’s premier precious metal -- just open a history book.
Smart investors have two things as cornerstones of their portfolios: real estate and gold. While a lot of folks can’t just up and buy a rental property, they can afford to invest in gold. It’s one of the easiest ways to jumpstart fortifying a financial future without a lot of commitment. When you’re knee deep in a culture of swiping right to find a date, or ordering an Uber to take you to the bar, easy is everything.
To help paint a picture why gold is the smart investment bet in 2017, here are our top reasons Millennials should invest in gold:
1. Gold Offers More Bang for the Buck
Investments can get dicey. There’s penny stocks, junk bonds, blue chip stocks, hedge funds and all kinds of stuff. Gold, on the other hand, is a tangible mineral that you can feel. People like touching the merchandise, we like to know what we’re buying, if it feels right, if it has weight. Gold satiates that human need – it offers a sense of value through contact.
But, the thing is, the stock market jumps up and down based on news – good and bad. One day, a stock cruises skyward thanks to a merger, but the next six months, that same stock can be in the toilet thanks to bad Intel and the public getting cold feet. It’s all a gamble, but with gold, at least you have something real. It’s never been a $0, and it never will be. Gold has its own ups and downs, like any commodity, but it tends to move counter-cyclically to the stock market, so when you’re stocks are down, gold is probably up. Gold stays true because it tends to hold its buying power. If inflation goes up, gold probably will too, so your buying power stays over the long term.
2. Gold is almost inflation-proof
Gold is seen as a way to pass wealth from one generation to the next. Remember that history thing we talked about? One of gold’s prime values is that it’s a hedge against inflation. Just as the costs of living goes up and the value of many things like housing, stocks, or even technology wanes, gold stays consistently viable as a market option. When inflation years loom, stocks tank and gold prices soar -- gold is seen as a consistent holder of equity, despite global market trends affected by political and social events.
The U.S.dollar used to be backed by gold, as in “The Gold Standard.” It’s not anymore, so that’s why if you want a currency that’s actually got intrinsic value, you can’t beat gold.
3. It’s never too early to think about retirement, seriously
One day you’re 18, and you’ve got the tiger by the tail. You blink, and you’re 28, and you’re getting annoyed by people who love brunch. You blink again, and you’re 35 with a house note, a wife, and two kids. Life moves quick. Real quick.
What are thought of as “tomorrow’s problems” become today’s faster than you might think. That’s why considering what happens when you retire is important. In today’s world, you need more than Social Security or a 401K – all kinds of costs come into play, and those two forms of income won’t be enough. Gold is a perfect way to build your assets over time. Buy a little here and buy a little there – the beautiful thing is, because it holds value well, you can count that value as a part of your retirement portfolio. Gold holds a diverse appeal: people around the world want it. You’ll always find a buyer.
4. Demand + Price = a wise investment
There’s only so much gold to go around. Unlike stocks or other non-finite assets – the supply can’t be altered to satisfy demand. Gold is an “as is” market, meaning unless you’re selling what already exists, or more gold is found, a business can’t magically create more gold.
Gold’s value derives from the fact that it’s a natural element. The earth is the supplier – once we’ve found all of the gold, that’s it. That’s all there is.
Because of geopolitical climates around the world, people get uneasy about many things: a country’s direction, the financial state of ally nations, what job growth looks like, or just what the weather could potentially do to export crops.
There are a lot of factors at play when investing. But, the one constant thread? Gold’s value exists because of its limited supply, as well as it’s seen as an infallible investment by people who may not have faith in the market, but rely on an asset that can be judged by its worth by weight.
5. People Always Want Gold
What’s the first thing a rapper does when he blows up? He gets gold ropes, rings, and all kinds of iced out bling. What are championship rings made out of? Gold. When an actress walks down the red carpet at the Oscars, what’s she wearing? Gold. What are Oscar statues made out of? Gold.
All of these factors play into the greater narrative: gold’s desirability hasn’t waned after all these years. It’s a symbol of wealth and status. In action flicks, no one’s after stock portfolios, but duffel bags of gold bars. There’s a timeless chic gold carries. We’re drawn to gold on the most elemental level. While precious stones like emeralds or whatever the Internet deems cool will come and go en vogue, gold is consistently tough to beat. For centuries, we’ve built castles to defend it, and we’ve draped ourselves in gold’s natural glow.
Because of all of this, there will always be a market. Even if you’ve got a tiny bit, it’s still something of value that’ll remain a cornerstone of your portfolio, or just as a failsafe when you need cash in a pinch.
And there you have it. Our 5 ways you can get into gold investment, or just think about that gold grandma might have left you in the will. Either way, we’re glad you stopped by. If you want to learn more about investing in gold, or just learn gold 101 – click the link below.