Throughout the last century, gold has been perceived largely as a form of wealth protection. However, portfolio holders are increasingly realizing that the precious metal can offer other advantages, according to U.S. Money Reserve President Philip N. Diehl, who served as the 35th Director of the U.S. Mint.

“In American history, certainly over the last 100 years, gold has been viewed as protection in hard times,” Diehl says. “Gold has been viewed that way in both the American marketplace and in the world marketplace. It’s only recently that we’ve stepped back and said, ‘Oh, look at what gold has done since 2000 — or the late 1990s — to today; it’s risen from around $250 an ounce to over $2,600 an ounce.’”

During that period of growth — which can be examined via U.S. Money Reserve price charts — the United States experienced economic highs and lows, ranging from periods of growth to the Great Recession, which Diehl says helped consumers recognize that gold can play many roles in a portfolio.

“We have gold responding well in both good times and hard times,” Diehl says. “Its specialty is as wealth insurance in hard times, but it’s performed well in good times, too — and I think it’s important for us to recognize that and not oversell gold as just a ‘bad news’ investment.”

An Expanded Interest in Physical Gold Assets

Gold has performed notably well in 2024, having reached several new record high prices to date. On March 20, intraday gold prices rose above $2,200 per ounce — a then-new high point for the precious metal. On Sept. 18, gold’s price reached another unprecedented level, shooting up over $2,600 per ounce. As of Sept. 27, gold’s price was up more than 42% over the prior 12 months.

Certain age demographics, Diehl says, appear to be growing increasingly aware of gold’s potential — particularly in comparison to cryptocurrency, the volatility of which has proven to be a concern for many portfolio holders.

“If you’re 30 years old and you put money into cryptocurrencies, you have time to recover from big drops in prices like those we’ve seen,” he says. “But if you’re older, and you’re counting on crypto to provide a portion of your retirement — and in a matter of months you lose 50% of its value — you may not be in a position where you can wait for a recovery, if one ever comes.”

Diehl says he’s seen indications that millennials and members of Generation Z are generally more interested in gold than members of Generation X or Baby Boomers were when they were of a similar age.

“[Millennials and Gen Z] like the idea of something more reliable — something they can depend on continuing to have value — than what crypto represents,” he says. “Cryptocurrencies are highly speculative assets, whereas gold is a real store of value. Crypto has a track record of maybe 15 years, whereas gold has a track record of 3,000 years — it’s just a totally different kind of value proposition.”

As new generations make moves into gold and others realize gold’s benefits in both good and bad economic times, demand and prices for gold may increase, providing additional benefits for those who already own — or quickly take a position in — physical gold.