Home
News
- Meme stocks often lead to rapid growths within a short period
- Millennials were worried that their savings would lose value over time
A recent survey by the Royal Mint found that around two-thirds (64%) of millennials and Generation Z who have purchased cryptocurrency or meme stocks have either a portion or all of them. Meme stocks often lead to rapid growth within a short period. They also accrue a lot of social media attention.
The Financial Conduct Authority (FCA) had cautioned that cryptocurrencies that do not have a physical presence and exist electronically are unregulated. Knowing the risks of investing in such products, they must be ready to lose all their money. The survey by Royal Mint also revealed that over two-thirds of 68% of the young investors were considering investing in precious metals following their tryst with cryptocurrencies and meme currencies.
Millennials were worried that their savings would lose value over time
In other words, the millennials were worried that their savings would lose value over time. It was this sentiment that encouraged them to turn their savings into cryptocurrencies. However, with the authorities tightening the controls, they are forced to go back and invest in precious metals.
The survey also clarifies that the section of the population does not have faith in fiat currencies. Precious metal’s consistent growth (24%) and a formidable reputation for holding their values encourage the young to invest in precious metals.
Young Investors willing to take risk
The survey also revealed some interesting facts. 32% of the young investors opined that they were attracted towards the high-risk cryptocurrency and meme stocks because they offered high rewards. However, over half of the respondents said they did not get back the rewards they had hoped for or lost money.
Iona Bain, the Young Money blog founder, said that young investors are falling out of love with new and volatile assets and are once again turning to the tried and tested investments in gold and other precious metals to bring stability to their portfolios.
The data from the Royal Mint also reveals that 21% of the gold buying customers are below the age of 35.
Andrew Dickey, director of precious metals at the Royal Mint, feels that the rise in popularity of meme coins in the plate 2020 and early 2021 has encouraged the idea of investing in youngsters. It is great to see a fresh breed of young investors willing to take risks and aim for incredibly high profits. The young investors are also today more mature, as is evident from the survey.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
