Investors bet on AI, but gold keeps winning

[Robot investment monitoring market volatility in financial market]
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The ongoing artificial intelligence (AI) bull market has delivered impressive gains for investors, yet traditional safe-haven assets have outperformed over the same period.

Since October 12, 2022, the benchmark S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) has surged nearly 95%, fueled in large part by optimism surrounding AI-driven growth, according to data from Bespoke Investment Group.

However, gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]), long regarded as a defensive asset in times of uncertainty, has eclipsed these returns, climbing more than 150% over the same stretch. The precious metal’s remarkable performance highlights a broader investor appetite for risk mitigation, even amid a technology-fueled market rally.

Investor flows further underscore these trends. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY [https://seekingalpha.com/symbol/SPY]), which mirrors the S&P 500, has seen approximately $45.1 billion in net inflows since mid-October 2022. Meanwhile, SPDR Gold Shares ETF (NYSEARCA:GLD [https://seekingalpha.com/symbol/GLD]), the largest gold-focused fund, has attracted $16.7 billion during the same period.

These figures illustrate a nuanced market landscape where enthusiasm for high-growth sectors like AI coexists with sustained demand for traditional hedges. As investors navigate a complex economic environment, balancing exposure between growth-oriented equities and defensive assets like gold has become an increasingly prominent strategy.

S&P ETFS: (NYSEARCA:SPY [https://seekingalpha.com/symbol/SPY]), (NYSEARCA:VOO [https://seekingalpha.com/symbol/VOO]), (NYSEARCA:IVV [https://seekingalpha.com/symbol/IVV]), (NYSEARCA:RSP [https://seekingalpha.com/symbol/RSP]), (NYSEARCA:SSO [https://seekingalpha.com/symbol/SSO]), (NYSEARCA:UPRO [https://seekingalpha.com/symbol/UPRO]), (NYSEARCA:SH [https://seekingalpha.com/symbol/SH]), (NYSEARCA:SDS [https://seekingalpha.com/symbol/SDS]), (NYSEARCA:SPXU [https://seekingalpha.com/symbol/SPXU]), (MUTF:FXAIX [https://seekingalpha.com/symbol/FXAIX]), (MUTF:VFIAX [https://seekingalpha.com/symbol/VFIAX]), (MUTF:VFFSX [https://seekingalpha.com/symbol/VFFSX]), and (MUTF:SWPPX [https://seekingalpha.com/symbol/SWPPX]).

GOLD AND GOLD MINER ETFS: (NYSEARCA:GLD [https://seekingalpha.com/symbol/GLD]), (NYSEARCA:IAU [https://seekingalpha.com/symbol/IAU]), (NYSEARCA:SGOL [https://seekingalpha.com/symbol/SGOL]), (NYSEARCA:OUNZ [https://seekingalpha.com/symbol/OUNZ]), (NYSEARCA:BAR [https://seekingalpha.com/symbol/BAR]), (NYSEARCA:GDX [https://seekingalpha.com/symbol/GDX]), (NYSEARCA:GDXJ [https://seekingalpha.com/symbol/GDXJ]), (NYSEARCA:NUGT [https://seekingalpha.com/symbol/NUGT]), (NASDAQ:RING [https://seekingalpha.com/symbol/RING]), and (NYSEARCA:DUST [https://seekingalpha.com/symbol/DUST]).

ARTIFICIAL INTELLIGENCE/ROBOTICS ETFS: (NASDAQ:AIQ [https://seekingalpha.com/symbol/AIQ]), (NASDAQ:BOTZ [https://seekingalpha.com/symbol/BOTZ]), (NYSEARCA:DTEC [https://seekingalpha.com/symbol/DTEC]), (BATS:WTAI [https://seekingalpha.com/symbol/WTAI]), (NASDAQ:XAIX [https://seekingalpha.com/symbol/XAIX]), (NASDAQ:WISE [https://seekingalpha.com/symbol/WISE]), (NYSEARCA:GINN [https://seekingalpha.com/symbol/GINN]), (NASDAQ:ROBT [https://seekingalpha.com/symbol/ROBT]), (NYSEARCA:TECB [https://seekingalpha.com/symbol/TECB]), (NASDAQ:XT [https://seekingalpha.com/symbol/XT]), (NYSEARCA:THNQ [https://seekingalpha.com/symbol/THNQ]), and (NYSEARCA:CHAT [https://seekingalpha.com/symbol/CHAT]).

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