Investors are literally doubling down on gold, with their holdings expected to grow more than two times over the next year, according to an HSBC survey. This marks the largest single-year increase across asset classes, highlighting the yellow metal’s unparalleled appeal.
While gold interest is on the rise, retail investors are shrugging off the dollar as diversification and financial security take priority. These moves closely mirror the shifting reserve holdings of central banks, indicating an economy-wide transition.
Gold Holdings to Double
Through its Affluent Investor Snapshot 2025, 1 HSBC took the pulse of wealthy individuals to get a sense of investment sentiment and evolving market trends. Among the most compelling findings is that gold allocation is set to reach 11% of the average portfolio, up from 5% in the prior year.
That 120% jump places gold as “the standout asset class” of the year, expanding its portfolio share more than any other asset. Furthermore, over half of respondents expect to increase their alternative asset investments in the next year. This booming retail interest in gold reflects the surge of central bank activity in the market.
Total official holdings have risen 19% over the past decade, annual consumption has doubled since 2010’s averages, and more than 50% of central banks plan to buy more gold in the future. The parallel portfolio changes of retail and official investors suggest a multilevel shift toward safe-haven assets.
Investors Drop the Dollar
The survey also revealed a rising trend of dollar offloading. On average, respondents had slashed their USD positions by nearly 40% over the past year. Interestingly, younger generations comprised the most aggressive sell-offs. More specifically, Generation Z and Millennials cut their cash positions nearly in half, from 31% to 17%.
Similar to gold’s rising share of investor holdings, the dollar’s decline is occurring at both retail and official levels. The USD’s share of global reserves has fallen from 70% to 58% over the past few decades. Gold has even overtaken the euro as the second most widely held reserve asset.
Taken together, these shifts point to a broader de-dollarization trend playing out across various economic strata.
Gold Beats Cash for Safety
Revealingly, investors reported a major shift in fiscal priorities amid a climate of volatility, uncertainty, and skepticism. Financial stability was listed as the primary objective, which strains the dollar’s safe-haven reputation and bolsters gold’s rising role in the world economy.
These findings are supported by a June Gallup poll, which found that 88% of Americans are concerned about the state of the economy, with 73% expecting volatility to last through 2025. Investor outlook doesn’t improve when tracked across a longer timeframe, either. Bearish sentiment, the belief that the economy will go down, remains above the historical average.
Suggested Read: Gold Rush 2.0: A New Era in the Global Monetary Order
