Americans Flock to Gold as Economic Anxiety Intensifies

Everyday Americans are increasingly turning to gold as an investment safe haven amid growing economic uncertainty, pushing prices to a record $3,245.42 per ounce on Monday. The precious metal has risen more than 26% since mid-November, with much of the recent surge occurring as markets grapple with potential fallout from the Trump administration’s proposed tariff policies, according to Yahoo Finance.

Retail dealers report unprecedented demand for gold coins and bars following recent tariff announcements, signaling that anxiety about economic stability has spread beyond professional investors to ordinary households. This shift comes as the yield on 10-year U.S. Treasury bonds—traditionally considered safe investments—briefly climbed above 4.5%, raising questions about where people should turn during economic volatility.

“Let’s face it: We’ve been living now through more than five years of relentless crisis,” said Adrian Ash, research director at BullionVault. “Gold is a barometer of anxiety.”

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From Wall Street to Main Street: Gold Goes Mainstream

Money Metals Exchange, one of America’s largest retail dealers, reported that April 4 was its highest-transaction-volume day since the 2023 regional banking crisis. This surge occurred just days after the administration announced large-scale tariffs, suggesting direct correlation between policy uncertainty and consumer interest in precious metals.

“I’m not going to say it’s mainstream,” said Stefan Gleason, the company’s CEO. “It’s definitely not yet—but it’s become a more accepted and embraced physical asset.”

Monetary Metals, a platform where individuals can earn interest by leasing their gold, recorded a record number of new accounts in March. Industry analysts note that gold appears to be attracting younger investors who previously might have focused exclusively on stocks, cryptocurrencies, or other modern investments.

Even Costco has capitalized on this trend, selling one-ounce gold bars since 2023—a move suggesting the wholesale giant believes gold has appeal beyond specialized investors.

“I Wish I Had Done More”: Retirement Portfolios Shift

Terry Stanton, a retired Illinois resident, represents this growing cohort of everyday Americans investing in gold. Following a friend’s advice after the presidential election, Stanton moved approximately 5% of his investments to gold-backed ETFs and 10-15% to municipal bonds.

“Before retirement, I still had the belief that, in the long term, the stock market will appreciate,” Stanton explained. “Now, the fear of an economic meltdown seems more real.”

With gold prices reaching record highs, Stanton expressed regret at not allocating more of his portfolio to the precious metal, particularly when prices briefly dropped during recent market volatility. “I can tell you right now I wish I had done more of it,” he said.

Navigating the Golden Opportunity: Expert Insights

Financial experts outline three potential scenarios for gold’s immediate future, with continued price increases considered most likely if economic uncertainties persist. “If the decision is to go forward with tariffs, there will continue to be uncertainty around economic outlooks, which tends to drive demand for safe-haven assets like gold,” Joe Cavatoni, senior market strategist at World Gold Council, told CBS News.

The second most probable outcome is sustained volatility, which could create both risks and strategic buying opportunities. “Gold is generally owned as a long-term asset so, if anything, volatility can present strategic buying opportunities, especially if others are forced to sell,” noted Ben Nadelstein of Monetary Metals.

A significant price decline remains least likely but possible, particularly if investors need to liquidate gold holdings to cover losses elsewhere or if economic conditions unexpectedly stabilize.

Beyond Fear: Strategic Allocation in Uncertain Times

Despite gold’s impressive performance, financial advisors generally recommend limiting allocation to between 5% and 10% of a diversified portfolio. “Even though we know investors focus on gold investment in uncertain times, there are benefits to having gold in your portfolio in low-risk environments because it grows with economic expansion,” Cavatoni explained.

For those considering an investment, options include physical bullion, gold-backed ETFs, gold mining stocks, or specialized gold IRAs. Each approach offers different advantages in terms of liquidity, storage requirements, and potential returns.

Treasury Secretary Scott Bessent, a former hedge fund manager, has expressed strong support for gold as a reliable asset. “When I had my fund, I think people might have called me a gold bug,” he said in a recent interview with political commentator Tucker Carlson.

The Dollar’s Decline: Global Implications

Gold’s ascent reflects more than just immediate economic concerns. Since 2022, central banks worldwide have been accumulating gold at historic rates, partly to reduce dependence on the U.S. dollar following economic sanctions on Russia.

“There is a concerted effort globally—especially in Asia and the Middle East, but still globally—to diversify from the dollar,” explained Robert Gottlieb, former managing director at bullion banks JPMorgan Chase and HSBC.

This trend has accelerated recently, with Chinese physically-backed gold exchange-traded funds recording inflows in April that exceeded their entire first-quarter totals, according to CNBC. These investments have now surpassed inflows registered by U.S.-listed funds.

As the Federal Reserve maintains its wait-and-see approach to interest rates amid what Atlanta Federal Reserve Bank President Raphael Bostic calls an economic “big pause,” gold’s appeal appears poised to continue. Traders currently anticipate 83 basis points of Fed rate cuts this year—a scenario that typically benefits non-yielding assets like gold.

For everyday Americans increasingly concerned about economic stability, the ancient store of value is once again proving its worth as financial insurance in uncertain times—even as experts debate whether its spectacular rise can be sustained.

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