Long-Term Investment for Gen Z, Gold Becomes the Most Popular Choice
Long-term investment is no longer an unfamiliar topic for Generation Z. Amid rising trends in youth investment, increasingly more young investors are recognising the importance of financial literacy from an early age.
The trend of youth investment in Indonesia has shown significant growth over the past few years. The proliferation of digital platforms has made investment for beginners feel more accessible and affordable.
Currently, investing no longer requires visits to offices or substantial capital. With just a mobile phone and internet connection, anyone can become a young investor.
However, this ease of access also presents challenges, including an abundance of information not always accompanied by deep understanding. Many are attracted simply by following trends, rather than pursuing long-term strategies.
Yet long-term investment demands consistency, patience, and sound financial literacy. This underscores the importance of understanding the data and reasons behind the surge in young investors today.
Data from PT Kustodian Sentral Efek Indonesia (KSEI) as of August 2025 shows that investors in Indonesia’s capital market are dominated by younger age groups.
A total of 54.12% of investors fall within the under-30 age bracket. This figure far exceeds the 31-40 age group, which stands at 24.89%. Meanwhile, the 41-50 age group represents 12.31%, the 51-60 age group 5.74%, and those above 60 years only 2.94%.
From an educational standpoint, the majority of investors are dominated by those with below upper-secondary to upper-secondary education at 44.52%. Diploma graduates account for 5.05%, bachelor’s degree holders 21.33%, master’s degrees and above 1.96%, and other categories 27.14%.
This data reveals one important point: the capital market is no longer exclusive to the wealthy or highly educated. Open access allows anyone to enter the investment world, including students and fresh graduates.
This means the youth investment trend is not merely a sensation, but rather a demographic shift in Indonesia’s investor structure.
Why Is Gen Z Entering the Investment World Faster?
Several factors are driving Gen Z to engage more quickly in long-term investment.
- Ease of Digital Access
Investment applications now feature simple layouts, quick registration processes, and low initial amounts. In fact, purchases of assets such as mutual funds or gold can be made starting from as little as tens of thousands of rupiah.
- Rising Financial Literacy
Educational financial content is proliferating on social media. Many content creators discuss shares, mutual funds, and cryptocurrency in accessible language. Although the quality of information needs to be filtered, at least there is growing awareness for learning how to manage money.
- Awareness of Financial Future
Gen Z grew up amid global economic uncertainty, pandemics, and inflation concerns. This collective experience shapes a more cautious mindset. They do not want to rely solely on a single income source.
This phenomenon shows that young people are not merely active as technology users, but are also becoming savvy at leveraging it to build a financial foundation.
If education continues to be strengthened and the financial market ecosystem becomes increasingly inclusive, the role of young investors in Indonesia is predicted to become increasingly dominant.
Among the various investment instruments, gold has become one of the most favoured. According to a Populix survey, 80% of respondents chose gold as their favourite instrument. Meanwhile, 7% opted for cash, 6% property, and the remaining 7% distributed across other instruments. Why is gold so popular?
Advantages of Gold
Gold is known to be relatively safe against inflation. Its value tends to remain stable over the long term, which is why it is often used as a hedge asset. Its liquidity is also high and can be sold easily at any time, in either physical or digital form. The initial capital is also affordable. With a nominal amount of around Rp10,000, investors can already start buying digital gold.
It is no surprise that digital gold transaction platforms have recorded significant growth, particularly among younger age groups. For Gen Z seeking long-term investment with moderate risk, gold appears to be a rational choice.
Disadvantages of Gold
Gold does not provide dividends or regular returns. Profits only come from the difference between purchase and selling prices. This means that if prices stagnate for a long time, investors do not gain additional cash flows. Furthermore, the risk of loss remains, whether for physical gold or digital gold if choosing a less credible platform.
Gold is also less ideal for the short term. Significant price increases typically only become apparent after 3-5 years have passed. For this reason, gold is better suited for long-term objectives such as retirement funds or asset value protection, not for immediate needs.
For Gen Z, gold could form the foundation of a portfolio. However, it still needs to be combined with other instruments to ensure more optimal growth potential and better diversified risk.
The surge in young investors in Indonesia is a positive signal that financial literacy is improving. Long-term investment is no longer an exclusive topic for certain groups, but has become part of the lifestyle of Gen Z who wish to achieve financial independence.
However, choosing an investment instrument cannot be based solely on trends. Gold certainly offers stability and accessibility, but this does not mean it suits every objective. Each individual has different risk profiles, needs, and time horizons.
Ultimately, the key to long-term investment lies not in how quickly you start, but how consistently you pursue it.
Gen Z has already demonstrated that they are willing to enter the market. The next challenge is ensuring these steps are taken with careful strategy, not merely following the crowd.