Consumer Confidence Slides to Decade Low as Gold and Silver Signal Rising Financial Unease
U.S. consumer confidence plunged in January to its lowest level in more than a decade, underscoring growing anxiety about household finances, job security, and economic stability. At the same time, gold delivered its strongest monthly performance since 1999 and recently crossed $5,000 an ounce for the first time ever, highlighting a sharp shift toward physical precious metals as uncertainty builds.
The Conference Board reported on January 27 that its consumer confidence index dropped 9.7 points to 84.5 in January, falling below even the lowest levels recorded during the COVID-19 pandemic. The decline reflects mounting concerns over inflation, trade policy, and long-term financial security.
“Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,” said Dana Peterson, the Conference Board’s chief economist. “All five components of the index deteriorated, driving the overall index to its lowest level since May 2014 — surpassing its COVID19 pandemic depths.”
A key measure of Americans’ short-term expectations for income, business conditions, and the job market fell 9.5 points to 65.1. Readings below 80 are often associated with elevated recession risk, and this marks the twelfth consecutive month the indicator has remained under that threshold.
Consumers’ assessments of current conditions also weakened. That component slid 9.9 points to 113.7, reflecting declining confidence in employment prospects and purchasing power. Survey respondents continued to cite elevated gas and grocery prices, along with concerns about tariffs, politics, health insurance, and global conflicts.
Perceptions of the labor market deteriorated further. The share of consumers who said jobs were “plentiful” dropped to 23.9% from 27.5% in December. Meanwhile, those who said jobs were “hard to get” rose to 20.8%, up from 19.1% the prior month.
Economists describe the labor market as being in a “low hire, low fire” phase, as businesses hesitate to expand amid uncertainty surrounding tariffs and interest rates. Government data earlier this month showed employers added just 50,000 jobs in December, compared with 56,000 in November. The unemployment rate stands at 4.4%.
Job growth has slowed sharply over the past year. The economy added 584,000 jobs in 2025, down from more than 2 million in 2024. Hiring softened further after President Donald Trump’s “liberation day” tariff announcement, which added new pressure on corporate planning.
Despite weaker sentiment, economic output has remained resilient. Fueled by consumer spending, the U.S. economy grew at its fastest pace in two years from July through September, exceeding many forecasts. However, analysts warn that sentiment trends often lead broader economic shifts.
Against this backdrop, investors have increasingly turned to gold and silver. Silver has had a historic surge over the last year, up nearly 200%, while gold just had its best year since 1979.
The surge reflects rising demand for tangible assets during periods of economic and geopolitical uncertainty. With inflation concerns lingering, trade tensions resurfacing, and labor markets softening, precious metals have reasserted their role as long-term stores of value.
Historically, periods of weakening consumer confidence have often coincided with increased interest in physical assets. As households reassess spending and saving strategies, gold and silver continue to attract attention as tools for diversification outside traditional financial systems.
