Millennials Don't Buy Gold
Millennials don't buy gold. Ask one at a coffee shop sometime. They will say they've never even thought about it. And yet, millennials are probably the most sophisticated financial generation ever. In the same breath, they will understand and talk about how gold makes a great hedge.
So why don't they buy gold? Why don't you buy gold?
It Is Too Difficult
It is way too difficult. I should know. I'm a millennial, and I've tried. It is easier to purchase obscure cryptocurrencies like Dogecoin, than it is to invest in gold.
- It's slow
- It's expensive
- It's inconvenient
First, you must save up almost $1,300.00. That is more than a share of Google stock. Even if you have a good job, it is not easy to save up that much money. Not to mention, the price of gold might increase while you are saving that money, costing you more money.
It is way too difficult. I should know. I'm a millennial, and I've tried.
Once you have saved $1,300.00, you really only have 2 options for purchasing investment-grade gold bars.
- Physically visit a gold shop
- Navigate archaic e-commerce websites
Purchasing from a shop
If you choose the shop option, you have to withdraw $1,300.00 in cash and carry it on your person. Many shops will not accept a debit card payment. And when they do, they will hold your bar for a week (or more) while the payment fully clears. So now you're left waiting another week for your gold bar and paying another visit to the shop. Finally, shops have higher fees because they have high overhead, like rent, to pay.
Purchasing from a website
If you choose the e-commerce option, you will be bombarded with options. Thousands of different products. Bars, rounds, secondary markets, collectibles, holiday-themed coins, gold grain, etc. Navigation is bad, and the majority of the options are designed to make the website more money rather than help you invest in gold. Once you do find investment-grade bars at a good price, you still have to go through the payment process.
I want to invest in gold to hedge my other investments. When the economy and market does poorly, gold tends to do well.
Many gold e-commerce sites do not accept credit cards. If they do, they typically charge an additional 4% or greater fee. To avoid the fee, you have two options, pay by check or a wire. Yes, literally mail a check. Do you even have checks? Once the check does arrive, which could take days in the mail, the e-commerce store will hold it for another 4 days (or more) to verify payment. Alternatively, you can pay by wire but this often requires calling up your bank, configuring the wire details (don't get them wrong), and paying $20-$40 just to send the wire.
Do you see how difficult this is? The process is terribly difficult. It takes days to weeks to invest in real gold. There is a complete lack of focus on helping millennials invest in gold.
It Should Be Easy
Today, there are convenient and excellent ways to invest in stocks and cryptocurrencies - Robinhood, Acorns, and Coinbase to name a few. In fact, I highly recommend these 3 applications. I use all 3 for my own investments.
But when it came to investing in gold, there was no equivalent option.
I want to invest in gold to hedge my other investments. When the economy and market does poorly, gold tends to do well. Our economy has been booming. It's been more than 10 years since we had a downturn. We might be due for one.
Would you invest in gold if the process was easier? Would you hedge your other investments by owning some?
Would you invest in gold if the process was easier? Would you hedge your other investments by owning some? I'd love to know because that is why I have started AlloyX. It is designed to help you invest in gold easily, so that you can hedge your investments during a market downturn.
Everyone should own a little bit of gold, millennials included.
Author / Scott Motte
Scott Motte is the Founder & CTO at AlloyX. He uses a mix of creativity and engineering chops to work on the company's core product. You can connect with him via email [email protected] or on twitter @motdotla.