(Kitco News) - This week, the gold market celebrated a significant milestone, showcasing its growing importance in investment portfolios and the broader global financial marketplace.
The world’s largest gold-backed exchange-traded fund (NYSE: GLD) marked its 20th anniversary. The milestone comes at a mixed time for the precious metal. Investment demand struggled through the first half of the year, even as prices rallied to record highs.
ETF inflows began to improve in late summer as investors positioned themselves for potential interest rate cuts from the Federal Reserve. However, momentum has faltered in recent weeks due to a stronger U.S. dollar and rising bond yields. Since Donald Trump’s decisive victory in the 2025 presidential election, GLD has seen its gold holdings decline by 11.2 tonnes. For the year, holdings are down nearly two tonnes.
Despite the volatility in the gold market, the latest investor survey, published by State Street Global Advisors on GLD’s anniversary, indicates that investment sentiment remains broadly optimistic.
According to the survey, 38% of U.S. investors currently hold gold in their portfolios, marking a significant increase from 20% in 2023. Additionally, of those who hold the precious metal, 56% said they are likely to increase their gold exposure within the next six to twelve months.
"As we celebrate 20 years of GLD, it’s clear that gold continues to play a vital role in all types of investor portfolios,” said George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors. "GLD has been instrumental in democratizing gold investing for a wide range of investors."
In a recent interview with Kitco News, Milling-Stanley expressed optimism about gold’s trajectory, despite its recent selloff.
“I think a lot of people have been waiting for this correction. Gold remains attractive as the Fed continues to lower interest rates and economic uncertainty remains high,” he said.
Milling-Stanley also emphasized that gold is likely to remain an attractive safe-haven asset as economic uncertainty and ongoing geopolitical turmoil drive volatility in global financial markets.
His comments align with broader investor sentiment captured in State Street’s survey.
“Gold is viewed as a reliable hedge against inflation and market volatility, with 57% of gold investors perceiving the precious metal as a safe haven during market instability and 51% seeing it as a hedge against inflation. Furthermore, 73% of gold investors surveyed said they anticipate continued stock market volatility over the next 12 months, underscoring gold's role as a stabilizing force in their portfolios,” the report noted.
The survey also highlighted a growing trend among younger investors, who are taking a broader interest in gold. Millennial investors are playing a significant role in driving demand, with 61% reporting that they hold gold in their portfolios, compared to 35% of Gen X and 20% of Baby Boomers.
Additionally, Millennials are more likely to favor gold ETFs as their preferred investment method. According to the survey, 54% of Millennial gold investors use gold ETFs in their portfolios, compared to 41% of Gen X and 21% of Baby Boomers.
“This generational shift underscores gold’s appeal as both a strategic asset and a store of value, particularly among younger investors who are drawn to the accessibility and cost efficiency of ETFs,” Milling-Stanley said.
