Amid escalating uncertainty over tariff policy and a rise in capital gains tax, from which gold is exempt, º£½ÇÊÓƵ retail investors are gravitating towards the precious metal.
A survey by Charles Schwab º£½ÇÊÓƵ revealed that nearly six out of 10 investors (58 per cent) anticipate an increase in gold's value over the forthcoming year, the highest proportion for any asset class, as reported by .
Confidence in gold has surged since last year, now surpassing traditional investments like the FTSE 100, with only 39 per cent of investors predicting an increase in the index's value over the next 12 months.
Almost a quarter of investors have augmented their holdings in precious metal stocks in the past three months, including 31 per cent of young investors, as market volatility has intensified due to US President Donald Trump's trade wars.
Gold prices surge
As Trump's 'Liberation Day' impacted financial markets, the Royal Mint reported a rise in customers purchasing physical gold, such as coins and bars. The hike in capital gains tax at the end of last year has also spurred investors to buy the precious metal, observed Toby Osborne, Head of Wealth Management at the Mint.
The performance of gold extends beyond the substance itself, with 73 per cent of investors considering companies that produce precious metals as sound investment options. This figure rises to 79 per cent among millennials, compared to 70 per cent of investors who view AI stocks as a robust investment choice.
In contrast, only 40% of retail investors are optimistic about the Dow Jones increasing in value over the next year, with 39% expressing similar sentiments for the FTSE 100 and 38% for the Nasdaq.
The French CAC 40 was the least favoured market among those surveyed, with a mere 23% of investors predicting growth in the index over the coming year.
"Amidst a backdrop of heightened geopolitical tensions, market volatility, and fears over levels of inflation, our study shows investors are increasingly bullish towards so-called safe-haven assets such as gold and other precious metals," commented Richard Flynn, managing director at Charles Schwab º£½ÇÊÓƵ.
"While some investors are opting to invest in gold directly, others prefer to invest in mining stocks to gain exposure to gold within their portfolios."
