Can American Retail Investors Sustain Their Gold Selling Amid Global Economic Uncertainty

American retail investors have recently been offloading gold bars and coins, a stark contrast to the persistent buying appetite seen in Asia. This divergence reflects fundamentally different economic outlooks and risk perceptions between Western and Asian investors.

While Americans appear more confident in the US economic trajectory, buoyed by political factors and tariff optimism, Asian buyers continue to view gold as a critical safe haven amid currency depreciation and geopolitical tensions.

The Impact of Gold’s Rally on American Retail Selling Behavior

Gold prices have surged dramatically, climbing over 59% since early 2024 and reaching above $3,300 per ounce in mid-2025. This rally has prompted many American retail investors to take profits, contributing to a glut of gold bars and coins in the US market.

Dealers have cut premiums to the lowest levels in six years to stimulate sales, and sellers now often pay fees to offload bullion, a reversal from previous years when premiums and buybacks were generous.

Did you know?
Gold has been used as a store of value and safe-haven asset for thousands of years, dating back to ancient civilizations. Its enduring appeal lies in its scarcity, durability, and universal acceptance as a form of wealth preservation across cultures and economic systems.

Central Banks and Institutional Demand Bolster Gold’s Structural Bull Case

Despite retail selling in the US, institutional and central bank demand for gold remains robust globally. Central banks are forecasted to purchase around 900 tonnes of gold in 2025, continuing a multi-year trend of reserve diversification away from the US dollar.

This institutional appetite underpins forecasts from major banks like J.P. Morgan, which predicts gold prices could approach $4,000 per ounce by mid-2026, driven by ongoing geopolitical risks and economic uncertainty.

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Economic and Political Factors Influencing American Investor Confidence

The American retail investor’s willingness to sell gold correlates with a perception of reduced risk in US policy and economic conditions. Some investors, particularly those aligned with Republican viewpoints, view President Trump’s tariff policies and government debt levels as manageable or even favorable.

This optimism reduces the perceived need to hold gold as a hedge, contrasting sharply with Asian investors’ concerns about local currency stability and regional geopolitical tensions.

Sustainability of the Selling Trend Amid Global Uncertainties

While the current selling trend among American retail investors is clear, its sustainability is uncertain. Inflationary pressures, potential trade policy shifts, and renewed geopolitical tensions could quickly reverse sentiment.

Moreover, any deterioration in economic conditions or unexpected shocks could trigger renewed buying of gold, which serves as a hedge against inflation and market volatility.

Analysts remain divided, with some forecasting price dips below $3,000, while others anticipate continued upward momentum.