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The price of gold soared past $2,700 per ounce in October 2024 — a record high that sparked widespread interest among investors. Global uncertainty and fluctuating interest rates helped to drive people to seek safety in the precious metal, and its strong performance — while slightly moderated — continued through the year’s end.
However, the price of gold has fluctuated over the last several weeks, and the economic shifts we’re experiencing could have even more of an impact. That, in turn, raises questions about gold’s potential for 2025.
So does gold investing still make sense? The answer to that question isn’t always as straightforward as you’d expect. To help guide your decision, we asked financial experts to break down the pros and cons of gold investing this year.
Find out how to add gold to your investment portfolio now.
Does gold investing still make sense? Pros and cons to know for 2025
Economic shifts are shaping how investors view gold in 2025.
“The world is experiencing a certain amount of turmoil and uncertainty,” says Rick Miller, financial planner and investment advisor at Miller Investment Management. So, many continue relying on gold to hedge against unexpected market declines.
Henry Yoshida, co-founder of Rocket Dollar, sees short-term changes ahead. Yoshida says that markets need time to evaluate new economic policies and potential shifts in global trade, but for patient investors, opportunities may emerge.
“Gold prices should continue their upward trajectory once the markets feel comfortable with the path forward,” says Yoshida.
Learn more about the many benefits of gold investing today.
Pros of investing in gold in 2025
Miller and Ruhee Rathod, director of finance and operations at Bario Neal, point to a few reasons to consider gold this year:
- Rising price trajectory: “I expect to see gold above $3,000 per ounce before the end of the year,” says Miller. Despite occasional flat periods, gold has shown strong momentum, climbing over 30% in the past year alone.
- Protection against market fluctuations: Gold often gains value during economic and political shifts. “As currencies weaken and the cost of living rises, [gold maintains its] purchasing power,” Rathod says. The metal has historically held strong through recessions, wars and market turbulence.
- Multiple ways to invest: Investors can choose from physical gold bars, gold exchange-traded funds (ETFs) or gold mining stocks. Gold ETFs offer easy entry and exit without storage concerns. Physical gold is popular if you don’t mind the storage aspect and want a tangible asset.
- Portfolio diversification: Rathod highlights that gold’s value tends to rise when other investments decline. Buying some can be an excellent way to reduce risk and volatility in an investment portfolio.
Cons of investing in gold in 2025
While the pros of investing in gold are compelling, it makes sense to consider the following drawbacks before jumping in:
- No regular income: Unlike stocks that pay dividends or bonds that earn interest, gold doesn’t generate ongoing returns. Rathod mentions the lack of yield is a key drawback, as it means your profit depends on selling at a higher price.
- Price volatility risk: There’s a chance that last year’s price trajectory might not continue. “If inflows stop or slow down significantly, this could [hurt] the spot price,” says Yoshida. Short-term investors should be especially cautious about market swings.
- Rising competition from other investments: “A slower pace of rate cuts will put downward pressure on gold prices because bond yields rise,” Yoshida says. In this scenario, you might prefer these income-producing options over gold.
- Storage and security fees: You must account for secure storage and insurance costs if you buy physical gold. These ongoing expenses can diminish your returns, especially for smaller quantities.
How much should you invest in gold in 2025?
Industry professionals recommend allocating a small part of your portfolio to gold.
“For [diversification], 5% to 10% would be suitable for [most],” Miller says.
However, your situation should guide your choice. For example, “younger investors focused on growth may prefer lower allocations, while those seeking stability during economic uncertainty might lean toward higher amounts,” says Rathod.
Rocket Dollar’s Yoshida takes a more conservative stance, suggesting a maximum of 5% for everyday investors.
The bottom line
Gold investments can be worthwhile in 2025, especially for diversifying your portfolio and hedging against financial instability. But the decision to invest in gold requires strategic planning.
Before investing, it’s important to determine which gold types suit your needs. Gold ETFs offer easy trading, while physical gold provides direct ownership. If you’re planning for retirement, you may want to consider gold IRAs that combine tax benefits with secure storage solutions.
Whatever you choose, stay informed about economic trends and central bank policies that could affect gold prices. And remember, gold works best as part of a balanced investment strategy — not a standalone solution.
