Terrible Savings Rates Push British Millennials to Rush Towards Gold
Low bank yields and COVID-19 uncertainty has sparked a new trend in saving and gift-giving. As gold remains valuable, many people have decided to put their money into the precious metal. Demand among millennials has increased sharply since Brexit, with young people looking for a way to seek safety, optimize their savings potential and give savvy gifts.
Safety amid chaos
Following Brexit, UK stocks and sterling plummeted, so many Brits moved their savings to gold, a much more stable asset. This tendency continued over the years and is again seeing a resurgence against the backdrop of the pandemic. With gold widely considered a “safe bet” during times of crisis, more and more people are now converting their cash to hedge their savings.
Curiously, the primary buyers here are young adults: millennials looking for a way to protect their earnings and ensure the future acquisition of assets. Just last Christmas gold bar sales increased by 53% according to Royal Mint, the Government-owned bar and coin producer. A lot of that gold went to savings, but a lot was also given away as holiday gifts. The most noteworthy change was the increase in young customers aged 22 to 37, which went up 32% compared to previous years.
Gold goes digital
Royal Mint has provided several options for investing digitally. This has made it easier for people to buy in gold, particularly young adults who live and thrive in this digital era. Royal Mint has stated that its “DigiGold” platform has proved extremely popular among Millennials, along with its “Little Treasures” offering, which is a gold-backed savings account for children.
As the world remains uncertain, Royal Mint expects these trends to carry over to 2021. They predict demand will continue increasing, especially considering the fiscal and monetary policies being put forth to reactivate the UK economy. It seems gold buying is here to stay, and young people will remain the key drivers of growth.