Why advisor education is key to gold ownership
They weren’t kidding when they said an education is worth its weight in gold.
According to the advisor edition of State Street Global Advisors’ Gold ETF Impact Study released Thursday, a lack of financial knowledge is the top reason investors don’t invest in gold, with more than a third indicating they don’t have the yellow metal in their portfolio because they don’t know enough about the ways they can invest. The study said only 41% of investors understand what influences the price of gold, compared to 75% of those who own gold in their portfolios.
Advisors’ role as educator proved especially critical when it comes to investing in gold ETFs. The survey showed nine out of 10 (91%) investors who own gold ETFs were informed by their financial advisor about the different ways to invest in gold.
State Street Global Advisors conducted the national survey among individual investors from March 24 to April 19 from a sample of 1,000 adults over 25 years old who have investible assets of $250,000 or more.
“Investors have good instincts about where — and when — to get objective advice. But it’s likely they will need even more guidance to achieve their financial goals as markets continue to react to higher interest rates, lower consumer sentiment, and stubborn inflation,” Allison Bonds, head of private and independent wealth management at State Street Global Advisors, said in a statement.
According to the study, 89% of investors surveyed who have a financial advisor and hold a gold ETF in their portfolio say their financial advisor explained the benefits of having gold in their investment portfolio, compared with 35% of all advised investors. Meanwhile, 83% said their financial advisor recommended gold for their long-term investment
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