Gold Investment Study
State Street Global Advisors recently published a gold investment study, which predicts significant risks of a global recession as central banks raise interest rates aggressively. This economic situation is expected to provide long-term support for the gold market, according to the report.
ETF Performance
SPDR Gold MiniShares Trust (NYSE: GLDM), has grown to be the third-largest gold ETF in the U.S., with assets under management of $6.2 billion in the last five years. As a low-cost choice for investors, GLDM holds 100.58 tonnes of gold with inflows of 12 tonnes this year.
Investor Demand for Gold
A survey conducted by State Street reveals that 20% of U.S. investors have gold in their portfolios, with an average allocation of 14% for gold assets. Among these, 47% hold gold ETFs. More than half of these investors are likely to increase their investment in the next 6-12 months.
Demographic Shifts
According to the study, Millennials have a higher percentage of gold in their investment portfolios at around 17%, while Gen X and Boomers hold about 10% each. The gold market may grow through better education and understanding of its benefits and role in a portfolio.
Potential Risks
Rising interest rates and an increasingly hawkish stance by the Federal Reserve are concerns for the gold market. However, aggressive interest rate hikes could push the global economy closer to a recession, which may provide long-term support for the gold market.
