US investors dump bullion as Asia keeps buying

Americans who once eagerly bought gold bars and coins are now selling off their holdings. 

Buyers in Asia continue accumulating bullion with no signs of slowing down while Americans who previously stocked up on gold bars and coins are now selling off these assets. This split reflects contrasting investor sentiment about the global economy on opposite sides of the world, Caliber.Az reports via Bloomberg.

In the US, retail investors—those holding physical gold at home or in safe deposit boxes—are growing more confident amid President Donald Trump’s tariffs, rising government debt, and geopolitical tensions. After gold’s impressive rally over the past two years, many appear ready to cash out.

These American retail investors differ from wealthier buyers, sovereign funds, and central banks worldwide, which continue to aggressively purchase gold as a safe haven. Meanwhile, Asian consumers are shifting away from jewelry toward gold bars and coins.

“A lot of the retail investors tend to be Republican-leaning. And whatever we say about the policy of tariffs, they like the idea of how Trump’s doing,” said Philip Newman, managing director at Metals Focus Ltd. “So from their point of view, there’s less reason to buy gold.”

The US market is so flooded with gold bars and coins that dealers have cut premiums to the lowest levels in six years to stimulate sales. For instance, Money Metals Exchange LLC charges buyers just $20 above spot for American Eagle coins—down sharply from $175 four years ago. Sellers now pay roughly $20 to offload gold, whereas in 2021, they would have earned $121 extra.

This surplus has caused new bullion sales to plunge. The US Mint’s American Eagle gold coin sales fell over 70 per cent in May compared to last year.

Globally, Metals Focus reports that demand for gold bars and coins has been dropping in North America and Western Europe over three years, while rising elsewhere. Asia-Pacific’s demand grew 3 per cent in Q1 2025, with China up 12 per cent, and South Korea, Singapore, Malaysia, and Indonesia each seeing gains above 30 per cent, according to the World Gold Council.

Kenny Hu, Citigroup’s commodity strategist, said initial concerns that Trump’s tariffs would hurt Asia spurred “super strong” gold demand there. Currency depreciation worries have also made gold the preferred asset, fueling the metal’s rally since 2024.

Brian Lan, managing director at Singapore’s GoldSilver Central, noted Southeast Asian investors increasingly see gold as strategic due to limited alternatives. “Southeast Asians who have memories of the war understand that gold is a form of insurance during periods of uncertainty,” he said.

In the US, profit-taking is underway after gold surged 59 per cent since early 2024 to $3,274 an ounce. Wall Street remains divided on gold’s future: Goldman Sachs expects $4,000 per ounce next year; Morgan Stanley forecasts $3,800 by year-end; Citigroup predicts a drop below $3,000.

“When there’s fear, they own more gold and less risk assets,” Hu said. “Now maybe they’re thinking things are actually fine. Tariffs are not that bad. Things will get negotiated out. Geopolitics will de-escalate and US growth may not be that bad.”

By Naila Huseynova