When Indonesia’s Finance Minister Purbaya Yudhi Sadewa advised young people to first save before investing and to choose wisely between gold or stocks investment, he was offering more than mere financial advice. He was issuing a call to cultivate financial literacy, discipline, and a cautious approach toward risk. The message resonates deeply with Gen Z, who increasingly face a complex landscape of investment options, digital temptations, and market hype. In this article, we explore the rationale behind his advice, the strengths and weaknesses of gold and stocks, how Gen Z can navigate them, and how to build a prudent path toward wealth growth.

The Core Message: Save First, Then Invest

Minister Purbaya’s central message is simple yet powerful: before jumping into investment vehicles, young people should establish a saving habit. He explained that Gen Z should save first, then shift to riskier instruments like stocks or mutual funds once their savings have grown sufficiently.

This principle matters because savings provide a financial safety net. Without it, negative market movements can easily disrupt personal finances and force premature liquidations. Beyond serving as an emergency buffer, saving also builds discipline, teaches patience, and strengthens the financial mindset needed for investing. Once a strong base is secured, moving into gold or stocks investment becomes a more confident and secure step.

Gold or Stocks Investment: Pros, Cons, and Suitability

Gold has long been considered a “safe haven” asset. It tends to hold its value when markets are volatile and has historically functioned as a hedge against inflation and currency depreciation. For long-term investors, gold provides stability and is often viewed as a reliable store of value. On the other hand, gold’s growth is relatively slow compared to stocks, and it does not generate income like dividends or interest. There are also costs associated with holding physical gold, such as storage and insurance, and its price often depends heavily on global cycles and interest rate policies.

Stocks, by contrast, represent ownership in a company and offer higher potential returns over the long term. Investing in stocks provides opportunities to participate in corporate growth and earn dividends if the company is profitable. Stocks are also liquid, meaning they can be bought or sold relatively quickly. However, they are far more volatile than gold, with prices that can fluctuate widely based on market sentiment, company performance, and broader economic shifts. Investing in stocks also requires research, skill, and emotional resilience, as the temptation to act on fear or hype can lead to poor timing and losses.

For Gen Z, the decision between gold or stocks investment should not be about choosing one over the other but about understanding personal risk tolerance, time horizon, and financial goals.

Building a Strategy: How Gen Z Can Approach Gold or Stocks Investment

The first step in any investment journey is defining clear goals. Young investors must ask themselves whether they are saving for short-term needs, such as education or a down payment, or for long-term wealth building, such as retirement. If the goal is short-term, gold or safer instruments may be more appropriate. If the goal is long-term, stocks typically provide higher growth potential.

Diversification is another critical principle. Instead of focusing exclusively on gold or stocks investment, combining the two can be more effective. Gold provides stability while stocks drive growth, and adding other instruments such as bonds can create balance. This approach spreads risk and ensures that the portfolio is not overly dependent on the performance of a single asset.

Another practical guideline is to start small and scale up gradually. Modern platforms allow young investors to begin with limited capital and learn as they go. As their understanding and financial resources expand, they can adjust their allocation and take on greater risk. Education is equally important. Gen Z is often vulnerable to fear of missing out, or FOMO, especially when influenced by social media trends. Minister Purbaya emphasized the importance of avoiding impulsive decisions and urged young people to truly understand the instruments they invest in rather than chasing hype.

Finally, investments should be reviewed regularly. Economic conditions and global cycles shift constantly, which means what works today may not be effective tomorrow. Periodic evaluations and rebalancing ensure that portfolios remain aligned with goals and risk tolerance.

Realistic Expectations and Mindset for Gen Z Investors

Investing is not about quick wins. Both gold and stocks require time to generate meaningful results, and expecting instant gains is unrealistic. Patience is crucial, as downturns are part of the journey, and many assets recover in the long run. Losses, when they occur, should be viewed as learning opportunities rather than failures. Building experience and adjusting strategies over time is part of becoming a skilled investor.

Young investors should also focus on value rather than speculation. Genuine investing means understanding the business, the asset, and its long-term potential. Speculative behavior driven by social media hype or peer influence can be dangerous. Discipline is equally vital when it comes to managing spending and avoiding unnecessary debt. Even the smartest investment strategy can collapse under poor personal financial management.

Sample Scenario: Gen Z Portfolio Example

To illustrate how Gen Z might balance gold or stocks investment, consider a sample allocation. A portfolio could dedicate half its weight to equities or mutual funds as the main growth engine, while setting aside 20 percent for gold to act as a stabilizer. Another 20 percent could be allocated to bonds for predictable income, and the remaining 10 percent reserved as cash or an emergency fund.

This is only a guideline, but it shows how combining assets creates balance. In the early years, Gen Z might prefer a safer structure, leaning more heavily toward gold. As they gain confidence and experience, they can shift gradually toward equities to capture higher long-term returns.

Conclusion

The message behind Minister Purbaya’s advice is clear: save first, then invest wisely. For Gen Z, the question of gold or stocks investment should not be framed as an either-or choice. Instead, it is about crafting a strategy that reflects personal goals, time horizon, and risk appetite. Gold provides security and stability, while stocks open the door to growth and opportunity. Both have their place in a well-designed portfolio.

The real challenge is not choosing between them but cultivating the right mindset. With financial literacy, patience, and discipline, young investors can avoid FOMO, resist impulsive decisions, and build wealth responsibly. Investing is a journey of small steps, careful choices, and long-term commitment. By taking that path, Gen Z can secure not only financial growth but also the confidence and wisdom to manage their future.