Pluang Survey: Gold Becomes Favorite Investment Instrument During Pandemic

Pluang recently conducted a survey involving 5500 respondents from a number of major cities in Indonesia. Focusing on the investment and saving behavior of the millennial generation. One of the findings is that gold is the main choice (32%) for this age group during this pandemic in investing.

VP Business Development Pluang Humphrey explained, there are a number of factors that cause gold to be the main choice for millennials. One of them is affordability with a pretty promising reciprocity.

"32 percent of the millennial generation reported trying a new investment, namely gold. This is the highest percentage compared to other well-known investments such as mutual funds, stocks, and deposits," said Humprey in his presentation.

Humprey's explanation shows that the new investment in the form of gold chosen by their respondents far outperforms other forms of investment such as stocks (15%), mutual funds (16%), deposits (8%), to p2p loans (4%). Another factor that helped boost the popularity of gold in this modern group was the price of gold which had increased significantly in the April-July 2020 period.

This survey actually captures the budget for investment that tends to decrease. Millennials are known to save more during this pandemic. Millennials' passion for saving is known to increase by around 5-10%. However, the pandemic factor has also caused the millennial generation's budget allocation to change a lot. Costs for transportation and excursions are two budget items that have been reduced considerably since the pandemic began.

The uncertainty of everything brought about by the Covid-19 outbreak is enough reason for millennials to allocate more money for saving. The need for pension funds, emergency funds, family savings, buying property, health costs, to education funds are the respondents' top priorities when saving.

However, the overall survey found that millennials still prefer to save the value of their money in the form of investment (59%) rather than saving (41%). While the most ogled investment, as mentioned earlier, is gold.

"There are 54% of millennials who have new investments during the pandemic and gold is the main choice," said Humphrey.

As a digital investment platform, we also believe that gold offers great opportunities for companies during the pandemic. Gold is indeed one of the investment products offered by Pluang along with other products. The Pluang movement to take advantage of this opportunity has actually been seen since it has been active in attracting other platforms to offer gold investment products.

Gojek and Dana are two of the many names they have worked with over the years the last few months. Humprey also admits that this is reflected in the profile and user activity they are currently. "So the big picture of investment is very attractive, especially gold, especially during this pandemic," he added.