A recent Gallup poll shows that American investment preferences have shifted, with gold becoming the second most popular long-term investment choice. The share of respondents who view gold as the best long-term investment increased to 26% this year from 15% in 2022, while the share favoring stocks fell to 18% from 24%. Real estate, which had been the top choice for several years, dropped to 34% from 45%, bringing it more in line with the average from 2016 to 2020.
The drop in preference for real estate is likely due to the downturn in housing markets, as high mortgage rates have induced price slumps and reduced investor confidence. Meanwhile, gold has undergone a boost recently, as turmoil in banking and a potential pause in Fed rate hikes have helped the asset climb in past weeks. Central banks have also substantially increased purchases of the metal.
Gallup notes that "gold tends to be the beneficiary when confidence levels in both real estate and stocks are down. This is typically during times of economic recession or uncertainty, as happened around the time of the Great Recession, and is happening again today."
After real estate, gold and stocks, 13% of Americans viewed savings accounts and CDs as the best investment, followed by 7% for bonds. Gallup also found that the preference for cryptocurrencies fell to 4% from 8% last year, possibly due to bankruptcies in the crypto market in recent quarters.
The poll was conducted in April 3-25 and indicates that American investment preferences have shifted in response to ongoing economic insecurities. While real estate remains a popular choice, gold has become a significant alternative for investors seeking stability during uncertain times.