A survey of Millennials and Generation Zs shows disappointment at performance of cryptocurrencies and other meme stocks
Younger generations always want their own things whether that’s fashion, music, or slang.
But when it comes to investments, there are some asset classes that will remain popular even for next-gen thrill seekers.
Like gold, for example. A popular asset class for generations and a common safe haven during turbulent times, the precious metal appears to be in the sights of younger investors despite the lure of digital alternatives.
While some have sought to establish cryptocurrencies as digital gold, a survey of Millennials and Generation Zs shows that cryptos and meme stocks are not making a lasting impression.
Almost two thirds of the young investors polled for the UK’s Royal Mint, who had owned cryptos or meme stocks, had already sold some or all of their holdings in favour of safer options, including gold.
More than half of respondents felt that their crypto or meme investments had been unsuccessful, and almost seven in ten are considering precious metals as a result.
Gold and other precious metals are seen as a good investment due to their historic performance and ability to hold their value over the longer term.
Bitcoin rollercoaster
Younger investors will likely have been rattled by the cryptocurrency rollercoaster, which has seen currencies such as Bitcoin surge to new highs before tumbling back.
With regulation and security concerns among the issues for digital currencies to address, the likelihood of younger investors shunning more traditional assets for digital-only portfolios seems narrow.
Recent events including the adoption of Bitcoin as legal tender in El Salvador, which created new volatility for the digital coins in the hours since, will not have done anything to shore up confidence in cryptos.
