Why Gen Z and Millennials Are Adding Gold to Their Portfolios

Younger investors, especially Gen Z, are more bullish on the economy and more prone to invest than any previous generation. According to Charles Schwab’s 2024 Modern Wealth Survey, Gen Z began investing at an average age of 19, a full 16 years earlier than baby boomers, who waited until 35. J.P. Morgan Personal Investing’s 2026 survey found that Gen Z investors were the most upbeat about markets, with 44% planning to invest more this year than they typically do.

There are a few factors that point to this renewed interest in gold, including social media, better financial education, and an earlier desire to grasp their financial future. This has given younger investors a sense of urgency that previous generations did not feel until much later in life.

Although some studies point to Gen Z scoring lower on financial literacy, we subscribe to the old adage that time in the market is better than timing the market. When it comes to Gen Z, it should be inspiring to know that young people are taking advantage of compound interest and being proactive with their finances.

JP Morgan

Financial literacy comes with time and experience, and we want to encourage younger investors to stay curious and to explore. Starting early is the biggest advantage a young investor has, and it should not be squandered on speculation alone.

That is why gold deserves a serious look in any young investor’s portfolio.

The Benefits of Investing in Gold

Gold has several proven advantages over other investments. It has longevity, utility, permanence, and it is tangible. Each of these matters in a portfolio for a different reason.

Gold Is Tangible and Independent of Any Government

Physical gold is a real asset that you can hold. It is not a claim on a company’s future earnings, a promise from a government to repay a bond, or a line of code on a distributed ledger. During periods of economic uncertainty, whether from inflation, deflation, or geopolitical disruption, gold has consistently demonstrated its merit as a dependable medium of exchange. The gold that exists today existed thousands of years ago, and it will exist thousands of years from now.

That permanence is why central banks, sovereign wealth funds, and long-term institutional investors continue to hold gold as a core reserve asset even at all-time high prices.

Gold Is Globally Liquid

Gold’s appeal transcends geographical boundaries and cultural differences, which positions it as one of the most universally valued assets in the world. It remains highly liquid and easily traded across borders, unlike many other investments. In an era where governments regularly restrict banking, monitor stock market activity, and impose limits on digital fund transfers, gold’s accessibility is a real advantage.

Gold Appeals to Multiple Investment Strategies

Gold works whether you want to hold physical bullion, trade gold ETFs, or invest in gold mining stocks. Bank of America Private Bank found that among wealthy investors under the age of 43, 45% own gold as a physical asset and another 45% are interested in holding it, according to Reuters reporting. State Street’s data shows millennials have the highest allocation to gold in their portfolios at 17%, outpacing both boomers and Gen X at 10%.

Gold Is a Values-Aligned Investment

According to the CFA Institute’s 2026 Next-Gen Investors report, more than 90% of Gen Z and millennial investors say it is important to align their portfolio with their personal values. Gold fits that priority in ways stocks often cannot. There is no corporate governance risk, no executive compensation scandal, no ESG accounting question about where the revenue came from. Reputable dealers can trace where physical gold was mined and refined, which gives investors a level of transparency that public equities rarely match.

Diversification Is About More Than a Basket of Stocks

When investors talk about diversification, the term covers such a broad range of investments that it can be hard to understand how you can actually diversify a portfolio effectively.

Some might argue that a basket of stocks in a mutual fund is diversified. That is true in some ways, but it is not the same thing as owning stocks, precious metals, real estate, and maybe even a stake in a small business or your own creator economy income stream. Zoom out on that portfolio, and you are diversifying at a higher level.

Precious metals, especially gold, provide a stability that stocks and other financial investments cannot touch, because of gold’s permanence and usefulness. It also grows with the investor. An ounce of gold is a serious investment, but throughout history, that ounce of gold has continued to become more valuable. If the trends continue, we are likely to see a continuous appreciation in the price of gold compared to other investments.

Interestingly, gold has matched the performance of the S&P 500 over long stretches, delivering approximately 12% average annual returns over the 20 years ending in 2025 according to J.P. Morgan Private Bank. But gold operates under totally different supply and demand mechanics than the S&P does. That is what true diversification looks like from our point of view: not many kinds of one security, but different assets altogether.

Gold Is a Timeless Asset for Investors of All Ages

The earlier you start, the longer your time horizon. When you invest in gold, whether in coins, bullion, ETFs, or a combination, or even jewelry or watches, you are tapping into one of the most crucial investments in human history.

Patek Philippe has a tagline that fits well here: you never actually own a Patek Philippe. You merely take care of it for the next generation. The same is true of gold. Gold is not going to go anywhere. It is not going to go out of business. And the more time you have to accumulate gold, the more you can leave as a legacy for the next generation, and the longer you will hold an asset that is valuable regardless of what the economy does.

If you are interested in learning more, our team at CMI Gold & Silver is ready to help you make well-informed choices. You can track daily spot prices for real-time context, explore gold coins and bullion directly, or buy gold and silver through a non-commission broker who is matched to your situation, not a sales quota.

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