Interest rate fluctuations push Gen Z to gold investments

Gold companies are seeing a rise in younger investors holding the asset.

Research suggests up to 16 per cent of Gen Z own gold and some companies have seen the number of people born between 1997 and 2012 owning the metal double in a year.

Rik Kanda, managing director at The Gold Bullion Company, said volatile interest rates could be part of the reason behind changes.

He said: “Over the past decade, Brits have been faced with fluctuating inflation rates, which have played their part in gold prices hitting record highs.

“As the cost of living continues to squeeze the finances of Brits and gold’s value has risen, Gen Z are looking to create a financially stable future, which is why gold is an attractive asset.

“It has been reported that around 45-50 per cent of Gen Z don’t have a workplace pension, as many feel more sceptical towards this investment option compared to older generations.

“With gold offering independence from government-supported systems such as workplace pensions, investment in gold is now increasing in popularity.”

tara.o’connor@ft.com

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