New generation of gold bugs: Why millennials are holding more gold than older generations

New generation of gold bugs: Why millennials are holding more gold than older generations

our Pippa Stevens has more on younger investors getting bit by the gold bug Pippa good morning good morning Frank well this is far from a boomer only trade Millennials actually have the largest allocation to gold at 177% relative to Baby Boomers 10% according to State Street now part of this is interest in a physical asset that retains value like the gold bars Costco’s been selling out of 27-year-old ADBA Ahmed who lives outside Toronto bought her first gold bar 2 years ago at T D bank and she’s been buying ever since as part of a balanced portfolio there needs to be a way to secure the value of funds and that’s why I was like let me go buy gold because I know for sure it’s not a short-term game it is a long-term way of storing value I don’t increase and get emotional about my purchases again as long as it’s 10% of my portfolio I’m okay with it if it does well amazing if it goes down I’m not affected because I’ve already hedged against other things 37-year-old Mark Meyer is a precious metals reseller and dealer in Pennsylvania who said younger buyers are driven by distrust in the dollar what I am fascinated with is the interest in the really young uh buyers so those under 35 years old um and generally when I talk to them and we sell you know small bars or or silver coins uh the the general concern is is that um there’s I want to say a distrust with the dollar uh and that’s what I guess pulls them into having interest in the gold and silver into physical products Meyer owns gold bars and coins as well as gold mining stocks and silver all told it makes up about a quarter of his Investment Portfolio which also includes crypto the I gldd and GDX all up double digits this year with 69% of Millennials saying Frank that the best way to invest in gold is through ETFs no so first off P when we talk about Millennials you people are like 45 years old now it’s like it’s not young people anymore Millennials are like pretty adult right now but I do want to ask you when it comes to these gold bars you mentioned that they they’re sold at Costco so I was looking here remember I’m in the UK they’re selling for like 31,000 here I think that’s like $34,000 something like that either way talking about $344,000 how many people are actually buying those and then taking them home and putting them in the safe for whatever you would do with it well clearly there’s more interest after Costco started selling them and kind of grabbed all the headlines and we saw a lot of people talking about them on social media including Tik Tok and you know this is definitely not the most popular trade but it is certainly one that’s growing in popularity when gold is at a record high that does increase interest and there’s a younger generation I think Millennials are still young by the way Frank but uh they’re coming up and saying you know how can I diversify my portfolio with stocks have do doing so well where else can I look for yields but interestingly so ADBA ahed up in Toronto said that when she first went to TD Bank to buy her very first gold bar two years ago it took them more than an hour simply because no one ever came to buy gold but now when she goes the bank is actually running ads for gold so it really does speak to kind of heightened interest heightened awareness in the fact that you can actually buy physical gold Frank

CNBC’s Pippa Stevens reports on younger investors getting ‘bit’ by the gold bug.