INVESTORS ARE MOVING INTO SAFE ASSETS

Recent market trends indicate that investors are reallocating their portfolios, moving assets from stocks and U.S. Treasuries into gold and silver. This shift is primarily driven by economic and geopolitical uncertainties, including trade tensions and inflation concerns.

Gold has surged to record highs, surpassing $3,200 per ounce, as investors seek safe-haven assets amid market volatility. BlackRock's global chief investment strategist, Wei Li, notes that in the current climate of inflationary pressure and high debt, gold offers better diversification than long-duration U.S. Treasuries, which are underperforming.

Similarly, silver has also gained favor, with its price increasing over 20% in 2024, outperforming many traditional assets. This rise is attributed to record industrial demand and a projected supply deficit, highlighting silver's potential as an investment.

Financial advisors are responding to this trend; a survey by State Street Global Advisors and the World Gold Council reveals that 29% of North American financial advisors plan to increase allocations to gold over the next 12 to 18 months, while 62% intend to maintain their current allocations. The primary reason cited for investing in gold is its role as a portfolio diversifier.

Central Banks are repatriating gold at a noticeable rate whilst JP Morgan continues to suppress silver.

Moreover, a Gallup poll indicates that 26% of Americans view gold as the best long-term investment, surpassing stocks and mutual funds, which stand at 18%. This shift reflects growing confidence in gold amid economic uncertainty.

In summary, there is a noticeable trend of investors moving assets from stocks and U.S. Treasuries into gold and silver, seeking stability and diversification in response to current economic and geopolitical challenges.