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As we progress through 2024 the gender investment gap does not show many signs of being closed with men almost twice as likely to invest in a Stocks and Shares ISA vs Women and this trend can be seen across SIPPs and General Investment Accounts.
There is a lot of work to be done but recent data published by the precious metal investment platform BullionVault shows encouraging signs with a 116% increase in new female investors on their platform since 2020.
What has led to the increase?
BullionVault’s Director of Research Adrian Ash offered the below comment:
“Financial turbulence and high inflation since the pandemic have forced people everywhere either to suffer a grinding loss of purchasing power or to take control of their investments and savings, seeking greater stability as well as better returns. Gold’s appeal as a form of investment insurance has also grown as political uncertainty has worsened with the wars in Ukraine and now Gaza.
To gain a better understanding of the data, BullionVault asked its community of female investors what prompted them to start investing in gold:
Among some of the responses, gold was described as “…a safer long-term investment”, while another response outlined how they “…wanted to have a spread of investments”. Further, other responses centred around economic uncertainty and a lack of trust in existing financial structures.
Additionally, over half of female investors using BullionVault found the service via word of mouth compared to just over one-third of male investors.
The importance of recommendations for female investors was further highlighted when BullionVault asked its users to explain why they chose BullionVault as opposed to other options such as buying coins to keep at home. Women users frequently cited recommendations by friends or family.
Why does the investment gap matter?
The increase in female investors buying gold and other precious metals could be an indication of increased financial liberation, however there is still more work to do when it comes to closing the gender investment gap.
The gap widens the retirement income gap. Because women tend to invest less, their nest eggs are often smaller. This can lead to financial insecurity in later years, especially considering women generally outlive men.
Secondly, the gap limits wealth creation for women. Investments have the potential for higher returns than traditional savings accounts. By shying away from investing, women miss out on the opportunity to grow their wealth over time and achieve financial goals.
Bridging the gender investment gap isn’t just about financial equality, it’s about empowering women to secure their futures and contribute more fully to the economy and investing in precious metals amongst a well-diversified portfolio is a great start.
This content is for informational purposes only and should not be taken as financial advice. Always consult a professional before making any investment decisions. Remember that investing involves risks and is not suitable for everyone. Past performance is not indicative of future results.
Image credit (BullionVault)
