Gold’s historic rally exposes persistent under allocation among US investors

By Gary Wagner – Kitco News

Despite gold’s ascent to successive all-time highs in 2025 and new all-time highs being made today, American institutional and retail investors have maintained remarkably tepid exposure to the precious metal, presenting what Goldman Sachs analysts characterize as a significant structural opportunity for continued price appreciation.

Gold ETF holdings among U.S. investors remain six basis points below their 2012 peak—a deficit that has persisted since these investment vehicles first launched in the mid-2000s, according to Goldman’s analysis published Wednesday. The divergence stems from a fundamental mathematical reality: aggregate portfolio growth has comprehensively outpaced both gold price appreciation and trading volume expansion over the past decade, Goldman’s analysts noted.