Charles Schwab UK Survey: Investors Pivot to Gold and AI Amid Geopolitical Uncertainty

UK investors are navigating a volatile 2026 by balancing traditional defensive assets with aggressive growth sectors. New data reveals a significant duality in portfolio management: while three-quarters of investors are clinging to gold amid geopolitical instability, a record number are simultaneously increasing their exposure to Artificial Intelligence, signalling a shift toward structural conviction over short-term speculation.

What was announced

The seventh annual Investment Forces survey from Charles Schwab UK, conducted between 3 and 20 March 2026, highlights how British investors are reacting to the ongoing conflict in Iran. The research shows that gold remains the consensus choice for safety, with 73% of respondents rating precious metals as the best investment option, a figure that has held steady since 2025. Furthermore, 64% of investors expect gold prices to rise over the next 12 months, marking a six percentage point increase in confidence year-on-year.

However, the flight to safety has not triggered a retreat from high-growth technology. Artificial Intelligence has emerged as the second most favoured asset class, with 65% of investors rating AI stocks as a good investment. Notably, 30% of respondents increased their AI holdings in the three months leading up to the survey—the highest allocation activity recorded for any single asset class in this wave. This suggests that AI is now viewed as a structural necessity rather than a speculative bubble.

The survey also identified a cooling sentiment toward cryptocurrency. While 44% view it as a good option, 26% rate it poorly, creating a significant divide in market opinion. Bitcoin optimism has dipped to 42%, down three percentage points from 2025. Demographics play a critical role here: 55% of Millennials hold crypto, compared to just 7% of Boomers and the Silent Generation. Looking further ahead, investors are prioritising medical technology (72%) and renewable energy (71%) as the primary sectors for long-term societal alignment.

"Gold and AI might seem like an unlikely pairing, but they reflect a logical approach from investors who are thinking carefully about both protection and growth. Gold can offer some reassurance when the world feels uncertain, and it appears to have delivered on that promise again this year. AI, meanwhile, represents the kind of structural shift that some investors increasingly see as too important to sit out, regardless of short-term market noise. The fact that AI saw the highest allocation activity of any asset class during a period of real geopolitical stress tells you something important about the depth of that conviction."

Richard Flynn, Managing Director, Charles Schwab UK.

The companies involved

The Charles Schwab Corporation is a major American multinational financial services company, operating as one of the largest brokerage firms in the United States and maintaining a significant presence in the United Kingdom through Charles Schwab UK. The firm provides a wide range of services including wealth management, securities brokerage, and banking. It has historically positioned itself as a champion for the retail investor, offering low-cost trading and comprehensive research tools.

In the UK market, the firm operates within a regulatory framework overseen by the Financial Conduct Authority (FCA), the conduct regulator for nearly 50,000 financial services firms and financial markets in the UK. The FCA’s role is to ensure that these markets function well, protecting consumers and enhancing market integrity. The survey data provided by Schwab serves as a benchmark for understanding retail sentiment in the British market, particularly during periods of macroeconomic stress such as the current geopolitical tensions in the Middle East.

What FF News has reported before

FF News has previously tracked the evolution of retail trading tools and market sentiment. Recently, we covered how Schwab Launches Single Stock Futures for 24/7 Retail Trading on thinkorswim, a move that provided retail traders with new avenues for market expression. We have also monitored the broader UK financial landscape, including reports on Equifax UK Issues Matchday Spending Warning as UK Credit Card Debt Hits £80.9 Billion and how WH Ireland Taps MorganAsh MARS Platform to Enhance Consumer Duty Compliance and Vulnerability Support. Additionally, we reported on Secure Trust Bank Taps Hargreaves Lansdown for First Deposit Aggregator Partnership, reflecting the ongoing shifts in how UK consumers manage their savings and investments.

What this means

The data suggests a sophisticated evolution in the retail investor mindset. The "barbell" strategy—holding gold for protection and AI for growth—indicates that UK investors are no longer reacting to volatility by simply moving to cash. Instead, they are distinguishing between geopolitical noise and long-term technological shifts. This puts pressure on traditional wealth managers to offer more than just standard diversification; they must now provide access to specific thematic growth while managing extreme tail risks. The resilience of AI allocations despite warnings of overvaluation shows that the "fear of missing out" has been replaced by a "fear of being left behind" in a structural transition. Watch for a continued divergence between crypto-native younger generations and gold-reliant older cohorts, which will dictate how firms market their products through the remainder of 2026.