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.
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.
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.
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.