eToro sees growing interest in gold among retail investors worldwide
eToro sees rising gold demand
Retail investors are increasingly viewing gold as a preferred hedging tool amid growing concerns over the weakening U.S. dollar and overall economic uncertainty, according to the latest Retail Investor Beat report by the eToro platform.
The study, which surveyed 10,000 investors across 12 countries, revealed significant shifts in sentiment and investment strategies in the second quarter of 2025.
Asset reallocation due to dollar weakness
According to the eToro report, 48% of investors have already adjusted or plan to adjust their portfolios in response to the dollar’s decline, which has lost about 8% of its value since the beginning of the year. The most popular strategy, cited by 29% of respondents, was increasing gold allocations. This was followed by reducing U.S. stock holdings (25%), increasing investments in international equities (24%), and boosting cryptocurrency exposure (24%).
Rising interest in gold
Investor optimism toward gold remains strong: 57% expect gold prices to rise over the next 6 to 12 months. According to eToro, nearly half of retail investors already hold gold, and among those who have not yet invested in the metal, more than a quarter are considering doing so.This trend highlights a growing awareness of the importance of diversification among non-institutional investors.
Comments from eToro analyst
"The decline in confidence in the U.S. as a bastion of long-term returns has prompted investors to seek opportunities beyond American borders, leading to increased geographical diversification," said Lale Akoner, Asset Management Analyst and Market Strategist at eToro.
"Concerns about fiscal sustainability, political instability, and macroeconomic uncertainties have driven retail investors to explore and grow their interest in other markets," she added.
Shifting regional preferences
The report also notes a decline in confidence in the U.S. as the region with the highest long-term return potential: only 34% of respondents consider the U.S. attractive for long-term investment (down from 45% at the end of 2024). Meanwhile, interest in Europe rose from 20% to 29%.
Similar positive trends were observed for China, emerging markets, and Japan.
Changing risk perceptions
In addition to portfolio adjustments, perceptions of key risks have shifted. According to eToro, 26% of investors now see a global recession as the main threat to their investments, while inflation has dropped to second place at 19%. Generation X and Baby Boomers are more concerned about a potential recession, while Gen Z and Millennials still cite inflation as their top risk.
Amid continued market volatility, the eToro report shows that retail investors are becoming increasingly strategic, turning to defensive assets and broadening their international exposure to boost portfolio resilience.
Previously, eToro significantly expanded its cryptocurrency offerings for users in the United States.
