Interest in gold has surged in 2024, with the yellow metal reaching new record highs driven by persistent inflation and growing recession fears, reinforcing its status as a safe-haven asset.
Brad Chastain, Director of Education at U.S. Money Reserve, emphasized gold’s enduring appeal, noting, “Today, gold remains a crucial component of consumer portfolios because it retains its purchasing power even when other assets, like stocks or real estate, may underperform.”
Gold’s rise began during the COVID-19 pandemic in 2020, when market volatility led to a significant increase in its price, surpassing $2,000 per ounce for the first time in August 2020. Now, in 2024, a combination of factors, including impending interest rate cuts, geopolitical risks, and increased central bank purchases, has propelled gold to new highs.
A Gallup poll released in May highlights gold’s growing popularity, ranking it as the third-best long-term investment for Americans, behind real estate and stocks. This marks a rehabilitation of gold’s reputation after a nearly decade-long slump following its previous peak in 2011.
The poll revealed that 36% of respondents favored real estate as the best investment, followed by stocks or mutual funds at 22%, and gold at 18%. Interestingly, only a small percentage of Americans view bonds (4%) or cryptocurrency (3%) as the best long-term investments.
The 2024 U.S. Presidential election has also brought a partisan divide in views on gold. According to Gallup, 27% of Republicans consider gold the best investment, compared to just 7% of Democrats and 18% of independents. This gap has widened since the 2020 election of President Joe Biden, reflecting differing economic perspectives between the parties.
Despite stocks seeing gains after a strong year, some analysts suggest that a “double-top” formation in the major indices could signal an impending correction. This has led to predictions that gold may once again rise to prominence, just as it did in 2011 and 2012 when other investments faltered.
“Gold’s reputation as a stable and secure asset continues to resonate with a significant portion of the population, particularly in certain regions of the U.S.,” Chastain observed. While Gallup’s poll indicates that gold’s appeal varies by income and political affiliation, there is also a clear regional difference in interest.
Data from Google Trends over the past five years shows that residents in the western U.S., especially in the Mountain West and Alaska, exhibit a much higher interest in gold relative to stocks compared to those in the eastern U.S.
“In states like Alaska, searches for ‘gold prices‘ have outpaced ‘stock prices’ by a factor of more than three,” Chastain noted. “This interest is driven by Alaska’s rich history of gold mining and its resource-based economy.”
Similarly, states like Montana, Nevada, and New Mexico show a strong preference for gold, with roughly twice as many gold-related searches as stock-related ones in recent years.
In contrast, eastern states like Virginia, Delaware, Rhode Island, and Connecticut exhibit lower interest in gold, with residents searching for stock prices nearly twice as often as gold prices.
Comparing these regional differences to the current electoral map reveals that Republican-leaning states tend to have a higher interest in gold, reflecting the party’s traditionally conservative fiscal stance. However, the challenging economic environment has sparked increased interest in gold across the political spectrum.
Chastain also pointed out that while interest in gold relative to stocks is lower in the eastern states, gold-related searches have grown in 44 states when comparing data from 2024 to 2019. Nationally, gold-related searches have increased by more than 10 percentage points over this five-year period.
This growth underscores the rising stature of gold among American investors, with gold price searches now representing 49% of total searches, compared to 51% for stocks—a significant shift in favor of the precious metal since 2019.
