Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead

Investment Opportunities in Gold and Alternative Assets - Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining tax advantages with the protective benefits of gold investment, making it attractive for hedging against economic uncertainties [1] - The price of gold has surged past $4,000 per ounce, driven by investor enthusiasm, indicating a strong demand for gold as an asset [2] - Historically, gold has served as a hedge against inflation and market volatility, with 45% of wealthy young investors owning gold as a physical asset and another 45% interested in it [3] Shift in Investment Preferences Among Younger Investors - A younger generation is showing a preference for alternative investments outside the traditional stock market, with 93% of wealthy young Americans planning to allocate more of their portfolios to alternatives in the coming years [3][4] - More than 72% of younger investors believe achieving above-average returns solely through traditional stocks and bonds is no longer possible, leading to increased interest in art as an alternative investment [6] - Fine art has historically outperformed the S&P 500, with contemporary art achieving an annual return of 11.5% from 1995 to 2023, compared to the S&P 500's 9.6% during the same period [7] Real Estate as a Growing Investment Sector - Real estate is viewed as a solid portfolio hedge, with 31% of younger investors identifying it as presenting the greatest opportunities for growth [10] - High-net-worth individuals hold over $6 trillion in real estate assets, indicating significant wealth concentration in this sector [10] - New investment platforms are making it easier for both accredited and non-accredited investors to access real estate markets, with options like fractional shares in commercial properties and residential home equity investments [11][12][13] Cryptocurrency's Mainstream Acceptance - Cryptocurrency has gained mainstream acceptance, with a global market cap of $3.68 trillion, driven by interest from wealthy millennials and Gen Z [16] - In a Bank of America survey, 29% of younger investors identified cryptocurrencies as offering the greatest opportunities for growth, compared to only 7% of older investors [17] - Wealthy young Americans allocate 15% of their portfolios to crypto, significantly higher than the 2% allocation by older generations [17]