Gold jumps above stocks as Americans' preferred long-term investment while real estate plunges

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  • Gold has jumped above stocks as Americans' preferred investment, according to a Gallup survey.

  • The share who view gold as the best long-term investment jumped to 26% this year from 15% in 2022.

  • Meanwhile, the share favoring stocks fell to 18% from 24%, and real estate dropped to 34% from 45%.

American investment preferences have shifted in response to ongoing economic insecurities, according to a new Gallup poll.

When asked which is the best long-term investment, a plurality of respondents still said real estate, but the share sank to 34% this year from 45% last year.

The drop brings the preference for real estate more in line with the average from 2016 to 2020, after soaring in the pandemic boom. It also highlights the downturn in housing markets, as high mortgage rates have induced price slumps and reduced investor confidence.

Meanwhile, gold surged to second place, with the share who view it as the best long-term investment jumping to 26% this year from 15% in 2022. The share favoring stocks fell to 18% from 24%, marking the first time in 10 years that gold topped stocks.

"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," Gallup said.

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. At the same time, central banks have substantially increased purchases of the metal.

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. That's as crypto markets have been plagued by bankruptcies in recent quarters, with bitcoin still well under its 2021 peak.

The poll was conducted in April 3-25.

Read the original article on Business Insider