What Are Investors Saying About Gold in 2024?

Post-election, gold and silver have fallen from their recent highs. Gold is down to about $2,600 per ounce, a steep drop from the all-time high price of gold of $2,788.54 established on October 30^th. Silver fell about $4 per ounce after its 12-year high of $34.53 set on October 27^th.

Any negativity about gold and silver dropping this past week is short-term noise due to investors “Buying the rumor and selling the news.” In other words, they bought ahead of the election, pricing in a Trump win, and they sold after the election to take some profits.

This will not last. As long as we fail to address entitlements (Medicare, Social Security, Pensions), and as long as we fail to balance budgets from both sides of the aisle (Democrats and Republicans), gold and silver prices are going higher.

Gold is still up 26% for the year, silver is up nearly 30%. And the markets are presenting a fantastic dip to buy into as precious metals face temporary headwinds from a stronger dollar and rising bond yields.

Western investors are just starting to get into this bull market, and the bull has a long way to run from here.

AND… that aligns incredibly well with our clientele. In a recent survey we conducted, you all overwhelmingly stated you are believers in owning gold and were inclined to buy more gold in the next few years.

Out of those surveyed, 88.9% currently own gold. This is not surprising given that we are a precious metals firm and many who would be willing to participate are already loyal clients and believers in hard assets.

Our goals for the survey were to get a pulse on buying habits and market sentiments. Anecdotally, we had heard clients express both excitement and dread about gold at all-time highs, but were curious about what the data would say…

In the beginning of October when we ran the survey, gold was still mid-rally and had not yet peaked above $2,780. Most who were surveyed correctly guessed that gold would continue to go higher.

A small percentage believes that current spot prices are too high and/or will go lower, but most investors appear to be reading key technical signs that the bull market will continue to drive spot prices even higher.

We also wanted to get a pulse on buying habits over the next few years. With gold reaching 39 new record highs in 2024 alone, were buyers tapped out with high spot prices, or did those surveyed plan to add to their allocation?

We looked at two different time periods… over the next six months to year period, and beyond a year from now.

A majority expressed plans to buy more gold in the next 6-12 months, and a significant portion expressed interest in continuing to add to their position even beyond that period.

For those who answered maybe, we were deeply curious as to why.

The reasons they gave for why were surprising. Not because they were unusual, but because there was such a broad diversity in the answers.

Based on the variety of responses, we know that no matter how essential gold and precious metals are for a portfolio, the reasons for buying are highly personal and unique to the investor.

• A backup plan
• Inflation
• Profitability
• Wealth preservation
• Chaos hedge
• S. Dollar weakness
• Because it is the only real asset/stable store of value
• Fear of government debt and instability
• Saving for retirement
• Security/Safety

We were also curious about what short term drivers prompted them to make a purchase. What triggers did they look for when buying?

• Spot price dips
• Spot price increases
• When gurus in the media they follow recommend it
• Whenever they have available or excess cash
• World events
• Poor economic outlook

A few responded that they buy on a regular schedule, but most seemed highly reactive to market conditions. We also had several who are coin collectors and buy when they find unique and interesting numismatic offers, but most tend to fall into the category of bullion investors.

These findings tend to align with what we know anecdotally about the clients we speak to when they buy from us, or at conferences and events, but these insights really drove home that gold investors are not a monolith. Because the reasons for owning and buying gold are so diverse, it reinforced that client need a broad range of options for when they are ready to buy.

The largest percentage of clients preferred to take delivery and store their gold at home, although many do also seem to take advantage of depository services.

A surprising amount preferred to own ETFs over physical bullion. In an increasingly digital world where most investors are familiar with equities and securities over hard assets,

But what did those surveyed have to say about portfolio allocation?

Based on World Gold Council data suggesting that an allocation of 8-12% provides the largest diversification and risk-balancing benefits to a portfolio, we typically suggest an average allocation of 10%, depending on a client’s goals.

Most who were surveyed expressed portfolio goals in line with those guidelines, but 31.5% expressed they believed in allocating even more of their wealth in gold!

With gold at record highs, we also hypothesized that many clients would also be interested in profit-taking from the market momentum.

Surprisingly, or perhaps unsurprising considering how many gold owners utilize gold in their portfolio for wealth preservation, most planned to hold onto their gold despite spot prices near all-time highs. As the market continues to heat up, we expect to see more profit-taking, but for the time being, most surveyed plan to hold onto their gold allocation.

Conclusion
Thank you again to those who responded to the survey.

Regardless of where you fall on the spectrum of answers, we believe that even with gold near all-time highs, it is more important now than ever to maintain a strong position in gold.

Dips in the spot prices like we are currently experiencing make an excellent opportunity to add gold to your portfolio as it continues to hit new highs throughout this ongoing bull market. You cannot afford to miss out on opportunities like this.

If you have any questions, or are ready to buy or sell gold, give us a call at 1-800-831-0007. Or email us!

Stay tuned for the results of the silver survey as well…