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BusinessWorld Economy

More Gen Zs, millennials invest in gold amid economic uncertainties

The Palawan Group of Companies said it has seen an increase among younger generations, specifically Generation Zs and millennials, investing in gold amid global economic uncertainties and shifts. “Millennials are actively investing in gold; that was a big surprise. Now, slowly, we can see some of the Gen Zs also,” Palawan Group of Companies President […]

Context & Analysis

Gold has long been associated with older savers in the Philippines, so a shift toward younger investors signals a change in how households are thinking about risk. For many Filipinos, gold is not just jewelry or family heirloom; it is a familiar store of value that can be bought in small amounts and held outside the banking system. When younger buyers show up in meaningful numbers, it suggests they are looking for alternatives to savings accounts, short-term deposits, or equities during periods of uncertainty.

That matters because younger generations are becoming central to Philippine consumption. Millennials now hold a large share of formal employment, while Gen Z is entering the workforce at a time when income growth, housing costs, and global shocks feel less predictable than previous cohorts experienced. If they allocate even modest portions of disposable income to gold, retailers, fintech platforms, and banks may need to rethink how they present savings products. The appeal is likely not just price appreciation. For many households, gold provides psychological comfort: a tangible asset that can be liquidated quickly if the peso weakens, remittances slow, or household cash flow tightens.

For Philippine businesses, the trend has practical implications. Retail networks with broad reach and digital payment rails can become important distribution channels for investment products, not just consumer goods. Fintech firms may find opportunities in education, transparent pricing, secure storage options, and easy redemption. Regulators that oversee financial products may also pay attention to how gold purchases are marketed, especially when digital platforms make buying and selling easier. At the same time, marketers must be careful not to overstate returns or present gold as a guaranteed shield against all economic stress.

The broader question is whether this behavior reflects a temporary flight to safety or a longer shift in how younger Filipinos build financial resilience. If global uncertainty persists, demand may continue even after prices rise, because the asset serves both investment and precautionary roles. Watch for changes in product availability, digital onboarding, consumer-protection guidance, and whether younger buyers treat gold as part of a diversified savings strategy rather than a single bet.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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