Retail investors are pouring capital into gold and silver Exchange-Traded Funds (ETFs). The buying spree comes as institutions move in the opposite direction.
The Kobeissi Letter highlighted that gold ETFs have seen over $70 billion in retail purchases since Q2 2025. Investors have tripled their purchase pace over the past six months.
Furthermore, over the past year, retail investors have bought over $10 billion in silver ETFs.
“Retail investors are all-in on precious metals,” the post read.
However, there is a clear gap between retail and institutional positioning. The Kobeissi Letter added that while retail was buying, institutional investors sold $1 billion in gold and $200 million in silver.
In addition, institutional outflows from gold accelerated after the precious metal’s price declines 20% in just 3 days in Januray.
“Institutions accumulated gold from $1,800 to $4,900. Now retail is tripling their buying and institutions are selling $1.2B into it. This is called distribution. Smart money doesn’t sell at the bottom. They sell into demand. Your demand,” MSB Intel wrote.
Meanwhile, gold and silver prices have declined amid escalating tensions in the Middle East. Since the United States and Israel launched coordinated airstrikes on Iran on February 28, gold has dropped roughly 9.44%. Silver has fared worse, falling approximately 22.59% from its highs.
War and geopolitical crises have historically driven investors toward gold. However, surging oil prices above $100 per barrel have stoked inflation fears, weighing on non-yielding assets like gold.
On the other hand, Bitcoin (BTC) is up approximately 6.17%, despite the recent declines.
On-chain analytics firm CryptoQuant reported that the correlation between Bitcoin and gold dropped to -0.88, the lowest level since November 2022. That reading indicates the two assets are now moving in strongly opposite directions.
