Gold Surpasses Stocks as Top Long-Term Investment, Gallup Poll Shows

In a significant shift in investor preferences, gold has overtaken stocks as the second most popular long-term investment, according to the latest Gallup poll. A notable 23% of respondents selected gold as the best option for long-term returns, marking a 5-point increase from last year’s survey. This rising interest in gold comes as Americans seek alternatives to the volatility that has rocked the stock market, especially following trade tensions and economic uncertainty.

While real estate continues to hold the top spot, with 37% of respondents choosing it as their preferred long-term investment (a figure that remains consistent year-over-year), gold’s surge is a clear indicator of shifting investor sentiment.

Stocks See Decline in Popularity

In contrast, stocks have seen a 6-point decline from the previous year, with only 16% of Americans selecting them as the best long-term investment. This marks a notable dip in the popularity of equities, which is attributed to continued stock market volatility, particularly after the announcement of tariffs by President Trump and the subsequent market selloff. Despite some stabilization in tariff discussions, the fear of market fluctuations persists, pushing investors towards safer options like gold.

The Gold and Real Estate Trend

For real estate, it remains the favored investment for many Americans, a title it has held since 2014. The 37% of respondents who chose real estate as their top pick underscores its steady appeal, particularly as a tangible, stable asset that offers value protection and the potential for long-term growth.

While gold’s increase in popularity is noteworthy, it still hasn’t reached the levels seen during the Great Recession of 2011 when 34% of Americans picked gold as their investment of choice, driven by aggressive monetary policies and economic uncertainty. Today, the combination of stock market volatility and fears surrounding inflation and global trade continue to fuel gold’s resurgence in the investment world.

Gold’s Growing Appeal Among Lower-Income Americans

Gallup’s poll also revealed that investment preferences vary significantly across income groups. Those with annual earnings of less than $50,000 are more inclined towards safer investments like gold and cash, with 27% choosing gold. On the other hand, higher-income Americans earning $100,000 or more prefer riskier assets, with only 17% selecting gold.

This discrepancy may explain why gold has been largely absent from the recent rally in U.S. gold demand. While China has seen strong demand for gold, particularly in coins and bars, the U.S. market has seen a drop to its lowest demand levels in nearly five years. This contrasts with China’s robust gold purchases, with reports indicating that Q1 of this year saw the second-strongest demand for gold in the country’s history.

Broader Trends: Savings and Cryptocurrency

Other options for long-term investments have seen stable interest. Savings accounts and CDs remained the preference for 13% of respondents, while bonds and cryptocurrency garnered much smaller shares, with 5% and 4% respectively. These numbers have remained largely unchanged from last year’s findings, indicating that while newer investment avenues like cryptocurrency are being considered, traditional assets still hold sway among the majority of Americans.

Interestingly, stock market ownership remains robust, with 62% of Americans reporting they own stocks, either directly or through retirement funds such as 401(k)s or mutual funds. Yet, the increasing preference for gold, especially in light of global economic uncertainty, is a clear sign that many are looking to balance their portfolios with more secure, tangible assets.

Global Gold Trends

Globally, China has become a key driver of the gold bull run, with strong demand for physical gold pushing the Chinese government to allocate additional import quotas to commercial banks. The U.S., however, has seen a decrease in gold coin and bar demand, reflecting a potential shift in investment preferences and an indication that the U.S. is not fully participating in the current gold rally, unlike investors in other regions.

Conclusion:

While real estate still reigns as the top choice for long-term investment, gold has become an increasingly favored option, especially in the face of stock market instability. The shift in sentiment, particularly among lower-income groups, signals that Americans are seeking safer investments as they navigate economic uncertainty. With global demand for gold soaring, particularly in China, it’s clear that the yellow metal is once again claiming its place as a sought-after asset in the modern investment landscape.