Gold to 3000? What You Need to Know

Gold, Bitcoin, Interest Rates, Earnings, The Dollar...

Gold-Despite the often negative portrayal of gold in financial media, a significant number of investors still hold it. However, upon closer examination, we see that just over a quarter of these investors have less than 1 percent of their assets in gold. Approximately half of the respondents hold at least 1 percent of their portfolio in gold, with about 24 percent allocating 3 percent or more.

Looking ahead, over one-quarter of respondents plan to increase their gold allocations in the next 12 to 18 months, more than double those planning to reduce their exposure. According to the World Gold Council, North American investors are likely to increase their gold allocations, noting that gold is historically under-owned in the U.S., signaling potential growth.

Investors cite several reasons for holding gold, such as its role as a portfolio diversifier and hedge against inflation, and its ability to reduce portfolio risk. The most common reason for increasing gold allocations, chosen by 46 percent of respondents, is its effectiveness as a diversifier during financial turmoil and economic uncertainty.

However, the survey also revealed a gap in perception regarding gold's returns. Sixty percent of respondents believe gold delivers less impressive returns compared to other assets. Contrary to this belief, gold has actually outperformed most asset classes over the last 25 years, with an average annual return of 8 percent, even surpassing equities.

A recent survey conducted by the World Gold Council, which polled 525 North American investors, reveals a steadily growing trend in gold ownership. The respondents included a mix of large institutions, consultants, and financial advisors, reflecting a broad spectrum of investment professionals.

The survey highlights a significant increase in gold allocation over the past few years. In 2018, 69 percent of those surveyed reported having some investment in gold. This figure has risen markedly in the latest survey, with 85 percent of respondents now indicating they own gold. This upward trend underscores the growing appeal of gold as a valuable asset in diverse investment portfolios.