A majority of 57 per cent of retail investors expect gold prices to rise in the next 6 to 12 months, while 45 per cent have already invested in the precious metal over the past couple of years, an eToro survey has found.
The Demand for Gold Surges
Interest in gold has increased as investors see it as a hedging instrument, amid declining confidence in the US dollar. The study, which surveyed 10,000 retail investors across 12 countries, found that 48 per cent have either adjusted or plan to adjust their portfolios.
Read more: Oil and Gold Jump after Israel Strikes Iran
Notably, 29 per cent of retail investors want to invest more in gold. Meanwhile, 25 per cent have reduced their investments in US stocks, while 24 per cent have increased their investments in non-US stocks. Additionally, 24 per cent of respondents are holding more money in cryptocurrencies.
“Growing concerns about Washington’s fiscal trajectory and political credibility have created a cocktail of uncertainty and tension surrounding the dollar’s historic hegemony, which has seen a decline of around 8 per cent so far this year,” said Lale Akoner, Global Market Analyst at eToro.
“Retail investors are tactically addressing the dollar’s downward trend by reallocating into non-correlated assets like gold, a hedging behaviour that reflects a more sophisticated understanding of risk – far from the outdated view of retail investors as ‘dumb money’.”
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US Stocks Are Not So Appealing Anymore
The survey also found that retail traders’ confidence in US stocks dropped from 45 per cent in Q4 2024 to 34 per cent in Q2 2025.
However, Gen Z investors remain optimistic about the growth potential of the US markets.
Related: 55% of Gen Z Discuss Investments with Friends, Surpasses Boomers
While the US market is losing its momentum, sentiment towards Europe is strengthening. 29 per cent of investors expect the strongest long-term return potential to come from Europe, up from 20 per cent in Q4 2024. Similarly, sentiment towards the markets in China, Japan, the UK, and Australia has also improved.
Furthermore, 26 per cent of retail investors are concerned about the state of the global economy and a potential recession affecting their investments. This figure was 18 per cent a year ago. Meanwhile, only 19 per cent see inflation as a significant negative factor.
“Concerns about fiscal sustainability, political instability, and macroeconomic uncertainties have driven retail investors to explore and grow their interest in other markets,” Akoner added. “With shorter investment horizons, older generations of investors have less time to recover from losses, so market uncertainty hits their sense of financial security harder.”
A majority of 57 per cent of retail investors expect gold prices to rise in the next 6 to 12 months, while 45 per cent have already invested in the precious metal over the past couple of years, an eToro survey has found.
The Demand for Gold Surges
Interest in gold has increased as investors see it as a hedging instrument, amid declining confidence in the US dollar. The study, which surveyed 10,000 retail investors across 12 countries, found that 48 per cent have either adjusted or plan to adjust their portfolios.
Read more: Oil and Gold Jump after Israel Strikes Iran
Notably, 29 per cent of retail investors want to invest more in gold. Meanwhile, 25 per cent have reduced their investments in US stocks, while 24 per cent have increased their investments in non-US stocks. Additionally, 24 per cent of respondents are holding more money in cryptocurrencies.
“Growing concerns about Washington’s fiscal trajectory and political credibility have created a cocktail of uncertainty and tension surrounding the dollar’s historic hegemony, which has seen a decline of around 8 per cent so far this year,” said Lale Akoner, Global Market Analyst at eToro.
“Retail investors are tactically addressing the dollar’s downward trend by reallocating into non-correlated assets like gold, a hedging behaviour that reflects a more sophisticated understanding of risk – far from the outdated view of retail investors as ‘dumb money’.”
You may also like: eToro Users Gain Full Access to Hong Kong’s $5 Trillion Market
US Stocks Are Not So Appealing Anymore
The survey also found that retail traders’ confidence in US stocks dropped from 45 per cent in Q4 2024 to 34 per cent in Q2 2025.
However, Gen Z investors remain optimistic about the growth potential of the US markets.
Related: 55% of Gen Z Discuss Investments with Friends, Surpasses Boomers
While the US market is losing its momentum, sentiment towards Europe is strengthening. 29 per cent of investors expect the strongest long-term return potential to come from Europe, up from 20 per cent in Q4 2024. Similarly, sentiment towards the markets in China, Japan, the UK, and Australia has also improved.
Furthermore, 26 per cent of retail investors are concerned about the state of the global economy and a potential recession affecting their investments. This figure was 18 per cent a year ago. Meanwhile, only 19 per cent see inflation as a significant negative factor.
“Concerns about fiscal sustainability, political instability, and macroeconomic uncertainties have driven retail investors to explore and grow their interest in other markets,” Akoner added. “With shorter investment horizons, older generations of investors have less time to recover from losses, so market uncertainty hits their sense of financial security harder.”
This post is originally published on FINANCEMAGNATES.
