Gold has been a favorite investment choice among the people for centuries. As an investment tool, it has certainly stood the test of time successfully. It is what attracts older people towards it when it comes to investing their hard-earned money. Even though the returns are not massive, one can be sure that gold would not disappoint. However, technology has changed the financial dynamics too in recent times, especially for young investors. The young investors are not afraid of venturing into unexplored territories and taking their chances when it comes to investments. It is what attracts them to the still infant crypto space.
As per the report published by JPMorgan, the older investors prefer investing in gold due to the stability it offers, whereas the young investors are attracted to the volatility and high returns offered by Bitcoin. The sentiments and behavior of the retail investors during this ongoing pandemic has been varying drastically across different age groups. In general, the investors are looking to invest in assets that would provide them at least partial immunity from the market volatility and economic recession. Researcher and strategist Nioloas Panigirtzoglou said that young investors are more interested in investing in cryptocurrencies and stocks, primarily the technology stocks, whereas older people are quitting investing in stocks.
The older people are heavily investing in funds and bonds, the demand for which remained consistently high during June and July this year. There has also been a high investment noted in gold ETFs and cryptocurrencies, which clearly signifies a rising interest in alternative investments. While the young investors are flocking towards investing in Bitcoin and gold ETFs, the Bloomberg Dollar Spot Index has plummeted by nearly 1.7 percent. It may be hinting towards a prolonged period of the dollar’s weakness in the coming future.
In one report, it is noted that many new and amateur investors are also entering the equity, gold ETFs, and crypto space. It is largely because the young investors are not afraid of taking calculated risks while looking for higher returns. The gold has undoubtedly stood the test of time and must be a part of an investment portfolio. Still, it is essential to look into alternative investments in the market that are faring well and providing considerable returns, such as Bitcoin. Even though the crypto space is fairly new compared to other asset classes, it has been able to prove its mettle and matured as a reliable asset-class in recent times.