GoldNuggets — Gold vs Crypto Allocations
GoldNuggets Digest: semi-annual investor allocation survey results, fund manager survey, actual ETF market data, family office allocations
The GoldNuggets Digest contains regular "nuggets" of Charts & Research that come across our desk on gold, macro, and investing which we think will be interesting and useful for investors.
Semi-Annual Twitter Survey
I’ve been running a semi-annual survey on twitter asking whether folk allocate to gold (and bitcoin/crypto) + whether they are individual or institutional investors. I just ran the latest survey and the results are interesting…
First on the Individual side, investors reported an increased incidence of allocating to both gold and crypto, but with crypto reaching a record high (not surprising given the strong run in prices there + popularity of both crypt and gold as hedges against fiat devaluation risk).
ETF Market Data — Gold vs Crypto
Interestingly this maps closely to the trend in ETF market implied allocations both in terms of gold implied allocations being still below 2020 levels, and with crypto allocations rising to record highs (and close to on-par with gold).
I think these both add a lot of credence to the idea that crypto has siphoned off an element of gold/precious metals speculative demand; particularly as the narrative has been that they both benefit from similar monetary/macro trends.
Semi-Annual Twitter Survey [Institutional]
As for the institutional side of things, there is a similar but less pronounced trend. But one caveat on this is: I tried running similar surveys on LinkedIn and while the results were consistent for individuals, and for institutional on gold, the twitter survey seems to be overstating allocations to crypto (maybe some wishful thinking, or maybe the anonymity of Twitter allows different answers).
But 2 key takeaways here: first, this survey suggests about 40% of institutional investors *don’t* allocate to gold (and that lines up with the next chart), second; it seems like it’s still an easier sell for institutional investors to allocate to gold vs crypto… but also you probably shouldn’t expect institutional crypto allocations to rise that much further if ~40% still won’t even bother with relatively staid old gold.
Fund Manager Survey: Gold vs Crypto Allocations
As noted, the latest BofA fund manager survey also indicated that ~40% of fund managers *do not* allocate anything to gold, and 75% don’t touch crypto. (source)
And for gold allocations, the weighted average is a paltry 2%.
This note was brought to you by the Monthly Gold Market Chartbook
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Best wishes,
Callum Thomas
Head of Research & Founder
Topdown Charts | www.topdowncharts.com
LinkedIn: https://www.linkedin.com/in/callum-thomas-4990063/
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