Shattering Financial Norms: The Rise of Women Investors in the Gold Market

According to a study by McKinsey & Company, women will control as much as $30 trillion in financial assets that baby-boomers will possess by the year 2030, an astonishing increase from the roughly $10 trillion controlled by women today. As a result, women are increasingly interested in how gold can play a critical role as part of a well-diversified portfolio.

Understanding the future role of gold for women investors begins with exploring their historical relationship between women and physical gold investments. Our research reveals a story of empowerment and financial autonomy. From gold’s origins as a symbol of status, wealth, and power to its current standing as a strategic investment, women have played a pivotal role in the development of the gold market.

This article provides a concise historical overview, illustrating how gold has been a constant presence in women’s lives, evolving in meaning and importance from ancient civilizations to the modern era. Today, women are savvy investors who increasingly view physical gold as a key component of a diversified portfolio. Following this historical perspective, we will examine why physical gold is regarded as a premier asset class for long-term investors and why First Gold Group is emerging as the preferred precious metals dealer for women. Let’s begin with a brief history of how women have shaped the practice of investing in physical gold.

Ancient Civilizations

Ancient Egypt (c. 3100 – 332 BCE)

In ancient Egypt, gold held deep spiritual and cultural significance. Women, particularly those of the elite class, were adorned with gold jewelry, symbolizing their status and wealth. Gold amulets and ornaments were not only decorative but also served as talismans believed to offer protection and divine favor.

Mesopotamia and the Indus Valley (c. 3000 – 1500 BCE)

Similar to Egypt, women in Mesopotamia and the Indus Valley civilization wore gold jewelry. These societies viewed gold as a symbol of prosperity and divine connection. Gold was used in dowries, thereby linking women’s marital and economic status to this precious metal.

Classical Antiquity (c. 800 BCE – 500 CE)

In Greece and Rome, gold continued to symbolize wealth and social standing. Women from affluent families wore intricate gold jewelry, often passed down through generations. These items were not only personal adornments but also investments and a form of wealth preservation.

Middle Ages to Renaissance

Medieval Europe (c. 500 – 1500 CE)

During the Middle Ages, gold remained a symbol of affluence. The Church amassed significant gold holdings, and wealthy women, especially from noble families, possessed gold jewelry and objects. Gold was integral to dowries, enhancing a woman’s marriage prospects and securing alliances.

Renaissance (c. 1300 – 1600)

The Renaissance period saw an increase in the artistic and elaborate use of gold. Women from wealthy merchant families and the nobility showcased their status through gold-embellished attire and accessories. Artists and goldsmiths like Benvenuto Cellini created masterpieces that adorned Europe’s elite women, reflecting the era’s opulence and the growing appreciation for art and culture.

Early Modern Period

Colonial Era (16th – 18th centuries)

The discovery of the New World and subsequent gold rushes in the Americas brought a significant influx of gold to Europe. This period saw an expansion of wealth and the middle class. Women, especially in burgeoning colonial societies, often had more economic influence and access to gold. Gold jewelry, coins, and bullion became common means for women to store and display wealth.

18th Century Enlightenment:

The Enlightenment period brought about new philosophical ideas regarding individual rights and gender roles. Women’s access to education and property began to improve, albeit slowly. Gold continued to symbolize wealth and status, but it also became more accessible to a broader segment of society, including women from less affluent backgrounds.

19th Century to Early 20th Century

Victorian Era (1837 – 1901)

The Victorian era was marked by strict social norms and elaborate fashion. Gold jewelry became even more ornate, reflecting the era’s aesthetic. Women of the upper and middle classes wore gold as a symbol of their social standing. The Industrial Revolution also meant mass production of gold items, making them accessible to more women.

Gold Rushes (1848 – 1855 and beyond)

The California Gold Rush and other gold rushes in Australia and South Africa dramatically impacted the global economy. Women in these regions sometimes played roles as miners or entrepreneurs, although they more commonly benefited indirectly through the wealth accumulated by male family members. The influx of gold bolstered national economies, contributing to a rise in consumer goods, including gold jewelry.

Early 20th Century

The early 20th century saw significant social changes, including the women’s suffrage movement. Women increasingly demanded and achieved greater rights and economic independence. Gold continued to be a means of personal wealth and security. Women began to invest in gold not just as jewelry but as financial assets, reflecting their growing economic agency.

Mid to Late 20th Century

Post-World War II

The post-war economic boom saw a rise in consumerism and the democratization of luxury goods. Gold jewelry became more widely available, and women across various socioeconomic classes could afford gold accessories. The 1950s and 1960s saw iconic fashion trends where gold played a central role.

1970s Gold Standard and Economic Turbulence

The 1970s were marked by the end of the gold standard and significant economic changes. Women, increasingly part of the workforce, were more financially independent and began investing in gold bullion and coins as a hedge against inflation and economic instability. This period also saw a rise in women’s rights and economic participation globally.

Late 20th Century

The late 20th century saw the rise of the gold market as an investment platform. Women, now more active in financial markets, invested in gold not only as a traditional symbol of wealth but also as part of their broader investment portfolios. Gold jewelry remained popular, but physical gold bullion and coins became important financial instruments.

21st Century

Modern Era

Today, women’s relationship with gold is multifaceted. Gold remains a significant cultural and traditional symbol, especially in weddings and ceremonies in many cultures. Women are also prominent in the gold investment sector. With greater financial literacy and access to global markets, women invest in physical gold bullion and coins as part of diversified investment strategies. Organizations and initiatives promoting women’s financial independence often highlight gold as a stable investment.

The relationship between women and gold bullion is both rich and multifaceted, mirroring broader social, economic, and cultural shifts. From ancient gold adornments symbolizing divine favor to modern-day investments representing financial independence, gold has remained a constant in women’s lives, its significance and meaning evolving over millennia. As we witness the largest wealth transfer to women in history, they are poised to become a leading force in the future of gold acquisitions.

What broader themes emerge in how women approach investing, and how can we ensure their needs are met moving forward? McKinsey & Company identified several insightful trends that highlight why women have become astute investors who consider physical gold a crucial component of a well-diversified portfolio:

• Women investors generally exhibit lower risk tolerance and a stronger focus on achieving life goals.
• They are nearly ten percentage points less likely than men to embrace high-risk investments in pursuit of greater returns.
• Women are approximately ten percentage points more likely than their male counterparts to express concern about outliving their assets and ensuring sufficient savings for retirement.
• Women are also more inclined to worry about the cost of healthcare, paying for long-term care insurance, and the possibility of becoming a burden on others later in life.

Given these key considerations for women investors, here are several reasons why physical gold is regarded as a premier asset class for long-term investment:

1. Stability and Preservation of Value: Gold has historically been a stable store of value. Unlike stocks or cryptocurrencies, gold prices tend to be less volatile over the long term, making it an attractive option for those who prefer to avoid large swings in their investment portfolio.

2. Hedge Against Inflation: Gold is often seen as a hedge against inflation. When inflation rises and paper currencies lose purchasing power, gold typically retains or even increases its value, providing a safeguard for conservative investors.

3. Tangible Asset: Physical gold is a tangible asset that you can hold, store, and easily recognize. For those who feel more secure owning something physical rather than paper or digital assets, gold offers that security.

4. Diversification: Adding gold to an investment portfolio can help diversify risk. Since gold is considered a non-correlated asset, it can provide a cushion during market downturns, reducing the overall risk of a portfolio.

5. Long-Term Security: Gold has been valued across cultures and economies for thousands of years. For a risk-averse investor, the long history of gold as a safe haven can provide peace of mind.

6. No Counterparty Risk: Unlike other investments, such as stocks or bonds, which depend on the financial health of companies or governments, gold does not carry counterparty risk, meaning gold is not dependent on the performance, reliability, or solvency of any other party or entity. This makes it a safer option in times of economic uncertainty or financial crises.

One final statistic about women investors that the team at First Gold Group takes to heart:

“Roughly a third of affluent women say they would only work with an investment professional they trust.”

We understand that investing in gold is more than just securing wealth—it’s about empowering your financial future with a timeless, tangible asset. Our company specializes in providing straight-forward, honest service without any hidden fees or misleading promotions. We pride ourselves on being transparent and delivering on promises without using flashy or deceptive tactics to attract or retain our customers. Whether you’re a seasoned investor or just beginning your journey, First Gold Group is here to support you as you navigate the changes that impact your life.

We hope to earn your trust, and your business.