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America's "Safest Long Term Investment" Is Gold - Gallup

Tyler Durden's picture


From GoldCore

Gold’s London AM fix this morning was USD 1,652.50, EUR 1,257.71, and GBP 1,020.44 per ounce.

Yesterday's AM fix was USD 1,661.25, EUR 1,253.02 and GBP 1,024.70 per ounce.

Gold fell $4.40 or 0.26% in New York yesterday and closed at $1,661.70/oz. Gold rose to over $1,670/oz in early US trading prior to selling capped price gains and the price then fell back to the $1,660/oz level.

Gold gradually fell during trading in Asia and this weakness has continued in European trading where gold looks set to test the $1,650/oz level or $1,646/oz, the price low after the $1.24 billion sell trade on Monday.

Cross Currency Table – Bloomberg

Gold’s weakness yesterday may have been due to the positive manufacturing data in China and the US leading to traders being hesitant to commit to the long side.

The slowdown in demand from India and data showing holdings in ETFs dropped to the lowest level in 3 months and US Mint monthly gold coin sales fell in April falling to the lowest level since June 2008 may have may have also tempered enthusiasm.

However, central bank demand is likely to be continuing at these levels and central banks are almost certainly still buying on the dips. Bullion coin and bar demand and ETF demand is likely to pick up in the coming weeks when the global debt crisis deteriorates again.

Data from Europe this morning was very negative with Italian industrial production (PMI) falling off a cliff, German manufacturing shrinking, Irish exports faltering on slower global growth, the Greek economy still floundering and Spanish unemployment figures appalling.

The Chairman of the White House Council of Economic Advisers, Alan Krueger, said yesterday that the European crisis poses “some risk” to the US and global economy.  Four US central bankers said that more stimuli probably won’t be needed. The Fed bought $2.3 trillion of bonds in two rounds of so-called quantitative easing from December 2008 to June 2011 thereby debasing the dollar.

HSBC Securities on April 29 downgraded its forecast for average gold prices this year to $1,760/oz from $1,850/oz, with analyst James Steel citing “a steep reduction in market expectations of further quantitative easing or other monetary stimulus.”

America's “Safest Long Term Investment” Is Gold - Gallup

Americans feel “gold is the safest long term investment” today, a Gallup survey has found.

Gold was favoured over four other types of investments perceived as the best long term choice for American investors today.

28% of the American public choose gold as their favoured investment of choice today.


Gold in USD – 3 Days (3 Minute) – Bloomberg


Real estate followed in second place, with 20% seeing it as the best long term investment.

Paper assets were less popular with savings accounts and certificates of deposits (CDs) tied with stocks and mutual funds at 19%.

Bonds came last at 8%.

This suggests that the American public may not be as uninformed when it comes to investing as is often suggested.

According to Gallup, "investing in gold has gained in popularity in recent years as low interest rates have made traditional savings instruments less attractive, and instability in the stock and real estate markets has undermined the mass appeal of those options." 

"Meanwhile, the rising trajectory of the price of gold over the past several years apparently offers more of the returns and stability investors seek."

While some may find the Gallup poll findings worrisome from a contrarian perspective, it is not.

Gold ownership remains very low amongst the public in most of the western world.

The poll’s findings suggest that this may change in the coming months and years.

While surveys often show that people are favourably disposed towards and instinctually trust gold, there remains a massive lack of knowledge about how to “invest in” or buy gold for financial insurance reasons. This lack of knowledge and awareness leads to the low levels of gold ownership in the western world today.

Gold in USD (White), EUR (Orange) and GBP (Yellow) YTD – Bloomberg

The non-specialist financial media continues to rarely, if ever, cover gold. When it does cover gold it is often in a negative light – with frequent suggestions that it is a “bad investment” and a “bubble”. Also, gurus or experts are often allowed to voice their negative opinions on gold without seeking plurality of opinion and getting the other side of the argument.

There are rarely comprehensive articles looking at the best, most cost-effective and safest ways to own gold as there are with other asset classes such as bank deposits, bonds and equities.

This will change in the coming years when there is less of a bias against gold and a realisation of the importance of gold as a diversification, and gold is treated and covered in the same way that equities, bonds and cash are covered today.


(Reuters Global Gold Forum)

It looks like some appetite for gold coins has returned in the United States, with 10,000 ounces of American Eagle gold coins sold on May 1, according to the U.S. Mint. That's already half the total amount recorded for the whole of April (though that was the weakest month in nearly four years).

(Bloomberg) -- India’s April Gold Imports Plunge to 30-35 Tons, Group Says

Gold imports by India, the world’s biggest bullion buyer, plunged to 30 metric tons to 35 tons in April from 90 tons a year earlier after higher import taxes weakened demand, an industry group said.

Demand remains dull in India as prices trade near record levels due to a decline in the local currency, Prithviraj Kothari, president of the Bombay Bullion Association, said in a phone interview today. Imports in 2012 are expected to be 700 tons to 750 tons, he said.

(Bloomberg) -- Comex Suspended Gold Trading in N.Y. Yesterday After Price Drop

CME Group Inc.’s Comex halted trading in gold futures for about 10 seconds yesterday at 8:31 a.m. after prices declined, said Damon Leavell, a spokesman in New York. The so-called Stop Logic halt, engineered by the exchange, is designed prevent excessive price movements, according to the Comex website. Gold futures for June delivery, which settled 60 cents lower at $1,664.20 an ounce yesterday, dropped about $14.50 shortly before 8:30 a.m. local time, data compiled by Bloomberg show.

The market was given a short period of time to regain its equilibrium, Leavell said in a telephone interview. CME declined to comment on the size of the trade that led to the halt.

“The stop-logic functionality happens across all markets at different times and can even happen several times in a day,” he said.

Comex halted trading after Comex recorded a transaction of 7,500 gold futures during one minute of trading, Dow Jones reported earlier.

(Bloomberg) -- BNP Paribas Lowers 2012 Gold Forecast to $1,715 an Ounce

BNP Paribas SA lowered its 2012 gold forecast by $140 an ounce to $1,715, according to an e-mailed report from the bank today. It cut its silver estimate for this year by $4.40 an ounce to $33.10.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Gold Still Americans' Top Pick Among Long-Term Investments - Gallup

Gold Weakens as Manufacturing Data Improves‎ - Business Week

Gold retreats as US data eases economy worries - Reuters

Gold extends losses in electronic trading - MarketWatch

HSBC lowers 2012 gold forecast 5% to $1,760/oz - MarketWatch


Hillary Clinton’s Headaches Are Waiting in China - Bloomberg

Total US Debt Soars To 101.5% Of GDP – Zero Hedge

Embry - This is What I’m Doing with My Own Money Right Now – King World News

Too Stupid To Think… Too Paralyzed To Act – 24HGold

The “Mistake of 1937” - GoldSeek

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Wed, 05/02/2012 - 07:44 | 2390605 Big Corked Boots
Big Corked Boots's picture

The sheeple have NOT awakened - but knowledge seeps in from the top down.

Wed, 05/02/2012 - 08:02 | 2390642 GetZeeGold
GetZeeGold's picture



Cat's outta the bag now Bitchez!


Wed, 05/02/2012 - 08:11 | 2390663 krispkritter
krispkritter's picture

Where's the 'Buy Silver!' guy? I think it's time to put in another order for some more of 'The Other White Meat, er, Metal...'.

Wed, 05/02/2012 - 08:15 | 2390677 GetZeeGold
GetZeeGold's picture



We sent him for coffee......should be around later.


Wed, 05/02/2012 - 08:51 | 2390757 MillionDollarBonus_
MillionDollarBonus_'s picture

 These figures are quite illuminating:


Perception of gold as a good investment:


College Graduate: 17%

Some College: 31%

No College: 35%


Perception of real estate as a good investment:


College Graduate: 30%

Some College: 14%

No College: 15%


The numbers are clear. The pro-gold anti-real estate crowd is far more likely to be uneducated and uninformed than people who understand that property prices have bottomed and gold has topped. Very interesting indeed.

Wed, 05/02/2012 - 08:55 | 2390778 GetZeeGold
GetZeeGold's picture



Screw gold.....I'm gonna go flip a couple of houses.


Wed, 05/02/2012 - 09:16 | 2390846 Pladizow
Pladizow's picture

What % of the people that think of gold actually own some gold.

My Guess, < 2%.

And of that 2%, what % is in physical?


Wed, 05/02/2012 - 09:20 | 2390856 zaphod
zaphod's picture

The most interesting stat was this

Gold. Savings/cds
Republicans. 31% 11%
Democrats. 24% 30%

To me that shows who is holding the government debt bag and who is aware that fiat will crash one day.

Wed, 05/02/2012 - 23:24 | 2391057 Ag Tex
Ag Tex's picture

Men, 55 years and older, and with no college education are the base supporters of real money (silver and gold). His parents and grandparents were more than likely working class and grew up in the midst of The Great Depression, and he probably remembers hearing the stories of the scarcity of money back then, since currency was backed by silver and gold. Time to tune into grandpa's wisdom. "Formal education will make you a living, self-education will make you a fortune." Jim Rohn "I never let my school interfere with my education." Mark Twain

Wed, 05/02/2012 - 09:55 | 2390966 trembo slice
trembo slice's picture

Yeah, it means our education system sucks.

Wed, 05/02/2012 - 10:54 | 2391149 lemonobrien
lemonobrien's picture

good one, my take on this, is, those who have a college degree have more programming to over come, and have more invested in the system; i'm a college grad, and i see no better long term investment now. I don't even mention gold to those around me; one, you don't talk about gold, but, two, i know their reaction.

Wed, 05/02/2012 - 14:12 | 2391733 Meatier Shower
Meatier Shower's picture

Just because you're educated, doesn't mean that you're intelligent.

Wed, 05/02/2012 - 08:25 | 2390698 MassDecep
MassDecep's picture

Listen to your Brother.


Wed, 05/02/2012 - 09:53 | 2390962 Ag Tex
Ag Tex's picture

Soon gold will be needed in order to afford and purchase silver, and gold will be going through the stratosphere.

Wed, 05/02/2012 - 08:28 | 2390699 MassDecep
MassDecep's picture

Listen to your Brother.


Wed, 05/02/2012 - 08:31 | 2390707 GetZeeGold
GetZeeGold's picture



Big bad John.


Wed, 05/02/2012 - 08:42 | 2390743 5880
5880's picture

Gold looks sick

Wed, 05/02/2012 - 07:45 | 2390607 LongSoupLine
LongSoupLine's picture



The real question is of that "28%" that believe in gold, how many are in the paper variety (i.e. - GLD)

Seeing the CONex is still in business, I'd say people aren't as "smart" as Gallup suggests.


Wed, 05/02/2012 - 07:50 | 2390616 manhunter
manhunter's picture

Comex; people selling gold they don't have to people who don't want it, and can't pay for it.

Wed, 05/02/2012 - 08:13 | 2390657 GetZeeGold
GetZeeGold's picture



Fort Knox, Comex, LBMA.......same freakin thing.


Wed, 05/02/2012 - 08:13 | 2390671 LvM
LvM's picture

If 28% truly believed gold is the best long term investment it's price would be at least 20 times higher right now.

Wed, 05/02/2012 - 11:35 | 2391303 akak
akak's picture

There is a BIG difference, particularly in these latter and degenerate times, between beliefs and actions.

How many times have we heard from this or that professional advocate of gold investing, after having polled a room of high-end investors at a conference, that only 1 or 2% of them actually own any physical gold?

Wed, 05/02/2012 - 08:21 | 2390689 Nostradamus
Nostradamus's picture

I agree. After the MF Global fiasco I sold all my shares and went 100% physical metal.  No way am I getting Corzined.  Anyone who has money in GLD when this ship starts to go down is going to lose all of it.

Wed, 05/02/2012 - 07:46 | 2390611 jazze
jazze's picture

Funny how college educated people like gold less than non-college educated people. We must all be stupid :)

Wed, 05/02/2012 - 07:54 | 2390628 HD
HD's picture

...so, you're saying college dropouts buy the GLD?

Wed, 05/02/2012 - 08:05 | 2390649 malikai
malikai's picture

I hate the fact that the metal has no taste to it. At any rate, it's still better than the aftertaste of the paper.

Wed, 05/02/2012 - 08:06 | 2390651 GetZeeGold
GetZeeGold's picture



GLD is only for Liberal Arts graduates.


Wed, 05/02/2012 - 08:19 | 2390686 cowdiddly
cowdiddly's picture

College educated like to invest in student loans.

Wed, 05/02/2012 - 07:47 | 2390612 manhunter
manhunter's picture

Gold is not an investment, it's the best kind of money, the kind that doesn't have to circulate.


ANOTHER: From the start, one thing most thinkers can't quite grasp is that "money does not have to circulate"! The first "world money", gold money that is, could stay locked up and still represent value and wealth.

But I say, spend your time in the company of truly wealthy ones, see how they make gold lie very still!


Wed, 05/02/2012 - 08:46 | 2390755 Henry Chinaski
Henry Chinaski's picture

Gold is not an investment, it's the best kind of money.

+1 Thank you for the clarification.

Wed, 05/02/2012 - 07:50 | 2390615 orangegeek
orangegeek's picture

How many times have "the herd" been wrong.  In fact, the least favorable, bonds, might be the best option - T-Bills would be more correct as a rise in interest rates seems more likely.


The elliott wave count for spot Gold still shows bearish.



Wed, 05/02/2012 - 08:06 | 2390648 SilverIsKing
SilverIsKing's picture

How much Gold did Elliott own?

Wed, 05/02/2012 - 08:14 | 2390675 Nostradamus
Nostradamus's picture

The herd is not invested in gold.  The herd is in stocks, bonds, and cash.  The coming flood into the precious metals market will be epic.  It hasn't even begun yet.  Little does the FED know, but they opened up the flood gates years ago with ZIRP and then further strengthened the tide with QE.  Slowly, inflation will begin to show up in the economy. Then the inflation will start to become obvious to everyone, and the FED will begin to tighten.  Then all hell will break loose and the FED will find itself trying to contain an inflationary Niagara Falls in a monetary policy test tube.  Gold, silver, and everything you find at the grocery store will become extremely expensive. Average people will not be able to afford any of it.  Give it a few more years. Maybe two or three. Maybe less.

Wed, 05/02/2012 - 10:09 | 2391007 Bay of Pigs
Bay of Pigs's picture

When is the FED going to "tighten". Not in the next 2 and a half years, according to them (end of 2014). 

Your posts makes no sense to me. They cannot tighten in this environment of expotential debt growth.

Wed, 05/02/2012 - 09:08 | 2390824 fuu
fuu's picture

How the heck is 28% the herd?

Wed, 05/02/2012 - 09:23 | 2390869 oddjob
oddjob's picture

Holders of physical most likely comprise .28% of said herd.

Wed, 05/02/2012 - 09:32 | 2390888 fuu
fuu's picture

Sounds more like a pack.

Wed, 05/02/2012 - 07:50 | 2390623 westboundnup
westboundnup's picture

Time to sell gold.  (Of course, in a sane world having a huge run up in value followed by fawning articles such as Gallup's would be a sell signal.)

Wed, 05/02/2012 - 08:14 | 2390674 GetZeeGold
GetZeeGold's picture



Eat an AAPL......before Samsung does.


Wed, 05/02/2012 - 08:14 | 2390676 Manthong
Manthong's picture

“Americans feel “gold is the safest long term investment” today, a Gallup survey has found.”

No they don’t.. yet.

It that was true the demand would outstrip the supply, the premiums would rise and the "we buy gold" signs would disappear.

Wed, 05/02/2012 - 08:38 | 2390730 fockewulf190
fockewulf190's picture

Expect to see an increase in anti-gold propaganda and continued raids in the gold and silver paper markets once the Bernank gets wind of this poll. He probably sprayed his morning economic briefing report with chewed bagel and lox once he saw 28%.

Wed, 05/02/2012 - 07:50 | 2390624 scatterbrains
scatterbrains's picture

I'd guess the fed/cia/cftc/gs have their sweaty little fingers on the gold trap door and about to jack margins into a huge plunge which will leave the carcasses of the overleveraged gold "traders" scattered everywhere.  That will be the time to back up the truck long the physical into the carnage.

Wed, 05/02/2012 - 08:56 | 2390781 GetZeeGold
GetZeeGold's picture



So where have you been the last decade?


Wed, 05/02/2012 - 07:53 | 2390626 The Swedish Chef
The Swedish Chef's picture

This could be a first, albeit weak, sign of the mania setting in. If gold continues to outpreform other investment classes, and especially if we see physical premiums increase, we could have a mass flight to gold. Nice for stackers but one should keep an eye open for exit strategies and exit points. 


No, I´m not talking about selling for FRNs but rather shifting your stored PM wealth to someting that is not infected with public mania.


Or we could see an ETF induced uptick until MSM talks gold down again. In either case I can´t really see that a dedicated stacker can lose.

Wed, 05/02/2012 - 07:55 | 2390630 GMadScientist
GMadScientist's picture

How many of those questioned actually had money to invest?


Wed, 05/02/2012 - 08:24 | 2390694 Ranger4564
Ranger4564's picture

Exactly my thought.  The chart shows 66% are 35 or older and 56% are making $75K or less, so how much disposable cash are we speaking here, and how much Gold / Silver can they actually buy?  I'm guessing that people may know we're fucked, but many cannot do anything about it except point at the solution. 

Wed, 05/02/2012 - 10:20 | 2391038 toady
toady's picture

Now that I'm retired I can only afford one or two oz's a month. I'm in the over 45, 55K a year bracket.

Wed, 05/02/2012 - 07:55 | 2390632 Red Heeler
Red Heeler's picture

Bullish Theoretcial Gallup Gold!

Wed, 05/02/2012 - 08:04 | 2390644 francis_sawyer
francis_sawyer's picture

I'm guessing 'beanie babies' & 'Pokemon Cards' are represented by the Stocks/Mutual Funds category...

Wed, 05/02/2012 - 08:04 | 2390646 dbomb12
dbomb12's picture

It is interesting to see everyone talk about the gold value, lets not forget Judas Iscariot betrayed Jesus for 30 silver pieces which had always been used as currency throughout history is still affordable and is not mentioned in Executive Order 6102

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