Investment Confidence in Gold on the Rise Amidst Continued Inflation

Where to sock away your money when inflation is at its peak? The goods are in gold, according to recent research. 

A new study by Retirement Living reveals that as Americans grapple with the impacts of inflation on their traditional investments like stocks, bonds, and 401ks, they’re beginning to turn their mind to precious metals as an alternative. 

With inflation playing a significant role in the fluctuation of traditional investments, there may be something to diversifying personal investment portfolios to include more non-traditional alternatives, less subject to the whims of the market. 

Retirement Living looked at search volume data from the past 12 months to solidify their findings. They surveyed 1,027 Americans to determine their perceptions about investing in the current economic climate.

Traditional Versus Alternative Investments

Given the current state of the economy, Retirement Living was eager to hear from the public. Their research reveals that 63% of Americans are skeptical of additional traditional investments. Almost 25% of those surveyed are more interested in alternative assets in this new reality. To best understand what qualifies as a conventional investment, read on.

Traditional Investments include stocks, bonds, and cash, which can lose value in response to inflation.

Alternative Investments include gold, real estate, collectibles, and fine art, which historically are less impacted by inflation given their inherent value. 

Of the 78% of respondents who have made investments over the last six months, one-third were in alternative assets. Interestingly, men were 91% more likely to make alternative investments in the past six months than women. Regarding age groups, Millennials are the most likely to make alternative investments, with 43% reporting these types of investment activities in the last six months. 

According to one survey participant, a 39-year-old Millennial female, now is not the time for traditional investing. “The uncertainty of the stock market makes it likely that I won’t make any money with traditional investing, and possible that I will even lose money. It’s important to diversify, and now is a good time to look into alternatives.”

The top three traditional investments reported by survey participants are stocks (40%), 401Ks (30%), and traditional or Roth IRAs (22%). For alternative investments, participants prioritize cryptocurrencies (19%), gold (6%), and collectibles (6%).

Although crypto ranks first, respondents feel it’s less trusted among alternative investments. According to the survey, the most trusted alternative asset is gold, which may explain why searches for gold and silver are on the rise as of late.

The Good and the Bad of Investing in Precious Metals

Gold, silver, and gold IRAs also feature on the top ten list of most trusted alternative assets. Why is this? The study reports that individuals consider precious metals virtually inflation-proof due to their inherent value. 29% of survey respondents also note their newfound interest in precious metals because they are a tangible asset. In comparison, 20% advise that the status as a safe-haven asset is valuable, and 17% believe they are a hedge against inflation. 

Of course, tangible assets also have their cons. Survey respondents are concerned about the lack of generated income (33% of individuals), 27% fear their vulnerability to theft, and 13% believe the liquidity risk is high. 

Despite these reservations, the proof is in the data: searches across America for “how to invest in gold and silver” have increased by a staggering 656% in the last year. For folks looking to retirement planning, the term “self-directed precious metals IRA” increased by 860% over the previous 12 months. And for those weighing the popularity of different alternative investments, it may be helpful to know that the term “best cryptocurrency to buy” is down 72% from last year. 

These States Are Most Interested in Precious Metal Investments

Thanks to the accessibility of state-by-state data, researchers can pinpoint which states have the highest level of searches for popular precious metal-related queries. Fourteen high-yield search terms were examined by Retirement Living, with results ranked by state. 

If the list included districts and territories, the District of Columbia would have been a standout, landing a spot on the top 10 list for all 14 search terms. 

The states of Hawaii, New Jersey, Colorado, New York, and Massachusetts search for “how to buy gold” the most. Hawaii, Wyoming, Vermont, North Dakota, and Alaska rank highest for the phrase “how to buy silver.” 

Precious metal IRAs were examined separately, with the states of Rhode Island, South Carolina, Montana, Connecticut, and Nebraska searching the most for “best gold IRA companies,” and South Dakota, North Dakota, Delaware, New Hampshire, and Hawaii looking up “best silver IRA companies.”

As we know, searching for something can be purely academic. Those states who appear most interested in taking action on their alternative investment plans are Wyoming, Delaware, and Vermont, which are top-ranking for both “gold dealer near me” and “silver dealer near me.”

Falling values amidst inflation can be scary for folks holding personal investments. Diversifying portfolios to include alternative investments may be a way to hedge against inflation. Precious metals are indeed of interest to many. Contact a certified financial planner to support you if you want to review or expand your portfolio. 

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This post Investment Confidence in Gold on the Rise Amidst Continued Inflation first appeared on Mama Say What.

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