If you’ve been paying attention to the news lately, you’ve probably noticed a lot of uncertainty about the economy. Inflation is still a concern, the job market is showing signs of weakness, and according to the latest Consumer Confidence Survey, Americans are feeling less optimistic about the future.
As someone who’s spent years helping people protect and grow their wealth, I can tell you that moments like this are when smart consumers turn to gold. For example: Family offices, which manage the wealth of ultra-high-net-worth individuals, are some of the wealthiest and most sophisticated investors in the world. And according to Deloitte Private’s 2024 Family Office trends report, many are increasing their allocations to gold—driven by inflation, recession fears, and geopolitical risks.
This increase in demand is just one sign that owning gold remains a strategic move for today’s economic challenges. Let me walk you through why the recent drop in consumer confidence is another clear sign that now is a great time to consider adding gold to your portfolio.
What Is the Consumer Confidence Survey, and Why Does It Matter?
The Consumer Confidence Survey conducted by The Conference Board is one of the most important tools we have for measuring how people feel about the economy. Every month, thousands of households are asked about their current financial situation and their expectations for the future. The results are then compiled into an index.
When this index is above 100, it means people are feeling good about the economy. When it’s below 100, it means they’re worried. Recently, the index dropped to 98.3, its lowest level in over four years.
This shift is significant because consumer confidence is a leading indicator of where the economy is headed: When people feel uncertain, they spend less, save more, and brace for tough times ahead.
What the Latest Numbers Are Telling Us
The February 2025 Consumer Confidence Survey revealed some troubling trends:
- Inflation fears are rising. People expect prices to keep climbing, with inflation expectations jumping from 5.2 to 6%.
- The job market is weakening. Fewer people believe jobs are “plentiful,” and more are saying jobs are “hard to get.” Pessimism about the job market has reached a 10-month high.
- Recession concerns are growing. The Expectations Index, which measures how people feel about the next six months, dropped to 72.9. Historically, when this number falls below 80, it often signals a recession on the horizon.
In short, people are bracing for severe economic turbulence—and when that happens, it’s time to think about protecting your wealth.
Why Gold Shines During Times of Economic Uncertainty
Gold has been a trusted store of wealth for thousands of years—and for good reason: It’s a financial safe haven. When the economy gets shaky, gold tends to perform well because it offers stability in a world of uncertainty. Here’s why gold is sought as a hedge during periods of volatility:
- Gold Protects Against Inflation.
Inflation eats away at the purchasing power of your money: Every dollar you have buys less and less as prices rise. But gold? It holds its purchasing power. In fact, during periods of high inflation, gold prices often increase because people turn to it as a hedge against the declining power of paper currency. - Gold Is a Safe Haven During Recessions.
When the stock market is volatile or the economy is in a downturn, gold provides a sense of security. During the 2008 Global Financial Crisis, for example, consumer confidence plummeted, and gold prices surged more than 25% in a single year as consumers and institutions alike sought refuge from the chaos. When the same thing happened during the COVID-19 pandemic, gold soared to new all-time highs. - Gold Offers Stability in Uncertain Times.
Unlike stocks or real estate, gold isn’t tied to the performance of one company or to the broader economy. It’s a tangible asset with intrinsic value, which makes it a reliable choice when other investments feel risky.
History shows that when people are worried about the economy, gold becomes a go-to asset. Today, in 2025, inflation is rising again, recession fears are growing, and consumer confidence is falling. If history is any guide, gold is poised to benefit—and now is the time to act.
Whether you’re considering rolling over a portion of your retirement savings into a gold IRA or wanting to hold physical gold in your home or bank, we’re here to help. Call U.S. Money Reserve today and build a strategy that provides peace of mind no matter what the economy throws your way.
