WGC: Retail Investors Flocked to Gold to Counter Crypto Risks

SEATTLE (Scrap Monster): The recent publication by the World Gold Council (WGC) indicates that retail investors flocked to gold to counter crypto risks. The retail investment in gold exceeded crypto during the previous year, it noted.

The results of a study carried out by Hall Partners suggest that 31% of the respondents invested in crypto over the initial ten-month period of 2021, thus indicating its popularity. However, the extreme volatility in crypto has left them suffering. Incidentally, bitcoin has plunged by over 50% in a little over six months. The crypto has recorded huge loss in value five times since its inception.

The research indicated that 32% of the crypto investors viewed their investment as high risk investment with potential for high returns or as a purely speculative bet. Only 6% considered cryptocurrencies as a safe investment.

On the contrary, nearly one-third of the gold investors consider their investment as a store of value, a bet against inflation or a safe one which they don’t have to worry about. The widespread acceptance for gold as a safe haven investment is quite evident from the fact that more investors bought gold than crypto during the previous year. More than 50% of those investors who bought cryptos in 2021, also invested in gold, in an attempt to balance their portfolio risk.

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