(Kitco News) The coronavirus crisis has left Americans disappointed with stocks while increasing their appetite for real estate, gold, and savings accounts, according to the latest Gallup survey.
The best long-term investment this time around was once again real estate with 35% of Americans choosing this option, the new Gallup survey showed. Real estate has been the top pick since 2013.
Stocks and mutual funds lost some popularity with only 21% of Americans choosing the option as the best long-term investment, down six percentage point since last year and marking the lowest level since 2012.
“Americans have become less likely to view stocks or mutual funds as the best long-term investment after U.S. markets dropped by more than a third as the economic implications of the coronavirus outbreak set in last month,” Gallup survey said.
Despite the drop, stocks or mutual funds remain the second best long-term investment choice.
Gold and savings accounts saw a rise in this year’s survey. Gold was chosen by 16% of Americans and savings accounts by 17%. “Roughly one in six Americans view savings accounts or CDs (17%) and gold (16%) as the best long-term investment,” they survey said.
For gold, this is a 2% rise since last year’s survey, which potentially points to a shift in Americans perspectives.
Increased interest in gold is also visible through its price gains over the past year. Spot gold is up nearly 35% since April 2019. At the time of writing, spot gold was trading at $1,725.60, down 0.23% on the day.
“It’s possible that the economic fallout from COVID-19 could scramble Americans’ preferences, with the stock market in peril and the real estate market’s future unclear. In 2011, in the aftermath of the global financial crisis that caused both stock and housing values to plummet, gold was perceived as the supreme investment,” the survey said.
Back in 2011 and 2012 surveys, gold held the number one position as the best long-term investment. At the time, 34% of Americans said gold was the best long-term investment.
Gallup’s 2020 annual Economy and Finance survey was conducted between April 1 and April 14, polling 1,017 U.S. adults.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
