While millennials flock to Bitcoin, older investors tend to lean toward gold, the bank’s analysts say. Retail investors have split down the middle over their preferred alternative investments, a team of JPMorgan analysts says.
While the older generation can’t get enough gold, younger investors are flocking to bitcoin and older ones to gold. A JPMorgan team estimates that retail investors are split down the middle as to which alternative investment they prefer, and they say it’s gold and bitcoin.
Older investors, on the other hand, buy bonds and sell shares, Nikolaos Panigirtzoglou said. Older generations continue to channel their excess liquidity into bonds, whose purchases remained strong in June and July, “strategists wrote in a note.
Millennials also had more in common with gold and bitcoin than old investors who sold stocks, “the team writes in the note, dated July 31, according to the Wall Street Journal. Millennials also have more than twice as much in common with bitcoin and gold as older investors who sell stocks and buy gold,
However, it should be noted that, according to tracker Coin Metrics, there are currently only about 1.5 million Bitcoins in circulation in the US.
JPMorgan strategists have reportedly found that Bitcoin’s market structure is more attractive to younger investors than traditional gold and silver markets. They say they think it’s a better investment opportunity for young people than gold or silver. The parties that market key cryptocurrencies cannot make cryptocurrencies – that is, money for investors.
This means that the movements of the two assets are not related. Both gold and bitcoin have gained value in recent months, a trend supported by the recent rise in the price of bitcoin and the fall in gold’s value against the dollar.
Gold and bitcoin ETFs have seen strong inflows from older and younger people who see alternative currencies, strategists wrote. Gold and Bitcoin exchange-traded funds have seen a strong influx of all ages who have recognized the potential of the alternative currency.