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U.S. investors prefer gold over bitcoin for the next 10 years - survey

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(Kitco News) In an environment filled with inflation fears and low interest rates, American investors said that they prefer to buy gold over bitcoin for the next decade, according to a new Bankrate survey.

Out of those polled, 13% said they would prefer to purchase gold and precious metals as the way to invest their not-needed money for the next ten years or more. This is down from the last year's 14%, but still within the same range as the previous eight years.

On the other hand, only 9% said they prefer to buy bitcoin and other cryptocurrencies, up from 4% reported in 2019 and 2% in 2018.

Despite the increase over the last three years, most Americans said they were still uncomfortable investing in cryptocurrencies. Out of those surveyed, 28% said they were "not too comfortable," and another 33% said they were "not at all comfortable" investing in crypto.

The top investment choice this year was real estate, with 28% choosing this option. Coming in second was the cash, savings, or CDs option. In third place were stocks, with only 16% of American investors choosing them this versus 28% last year. In fourth place was gold, followed by bitcoin and bonds.

With low interest rates and the hot real estate market, it is not surprising that American investors like property investment right now.

A much more unexpected choice was cash. "The strong preference for cash is ironic given record low interest rates and renewed concerns about inflation, and could be particularly damaging the longer inflation exceeds returns on cash investments," said Bankrate chief financial analyst Greg McBride. "While the pandemic has underscored the need to have sufficient short-term savings, cash investments do not pay off over long time periods."

Inflation concerns are not impacting how Americans choose to invest their money yet, with around 58% of respondents saying rising pressure pressures won't change the way they invest their money for the next ten years.

Bankrate survey polled 1,008 American adults from May 25-30.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.