Gold’s reputation as a reliable diversifier during financial turmoil and economic uncertainty is a major factor driving increased allocations among investors. In a recent survey, 46% of respondents cited gold’s role in diversifying their portfolios as one of their top three reasons for boosting their gold investments. This preference comes against a backdrop of heightened global uncertainty, geopolitical tensions, and elevated equity valuations.
Given the current climate, it’s no surprise that many North American investors are either maintaining or increasing their gold holdings. Over 25% of survey participants indicated plans to raise their gold allocations in the next 12 to 18 months, a figure more than double that of those intending to reduce their gold investments.
The survey also revealed a divide between institutions with and without gold holdings. Institutions that do not invest in gold often cite the absence of gold investments among other major institutions as a key barrier. However, this perception is contradicted by the data: 79% of North American asset owners and consultants currently hold a gold position. Addressing this misconception could encourage more investors to consider gold, potentially increasing market participation.
Overall, the trend among North American investors points toward a likely increase in gold allocations in the coming year. Historical data suggests that gold is under-owned in the US, indicating potential for growth and supporting a positive outlook for gold investments.
The survey has provided valuable insights into the attitudes and behaviors of global professional investors. Further detailed analysis will be shared as we continue to explore the data.
