The Single Best Investment To Make With $1,000 in 2025

According to a recent survey from Equitable, only 42% of Americans feel prepared to handle shifting financial issues presented by higher costs through tariffs, market uncertainty and recession fears. The survey also reported that 54% of respondents who work with a financial advisor are more likely to adjust their investment approach, which is significantly higher than the 36% who do not have financial guidance.

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While there are numerous ways you can invest your money, we want to look at the single best investment to make with $1,000 in 2025.  When considering current market conditions and historical returns, we consulted with financial experts who shared their recommendations for the best investment to make with $1,000 at this point in 2025.

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Invest in Gold

Vince Stanzione, financial expert and founder of First Information, said gold is an excellent investment for the rest of the year. “The main reason I invest in gold is to maintain purchasing power. All currencies are being devalued as governments print money,” Stanzione said. He also pointed out that it’s already up over 25% for 2025 and believes the upward move isn’t over yet. “Seasonal studies show we are about to go into a new strong period for Gold. In 21 of the past 25 years, gold prices rose between July 6 and February 24 of the following year. The average gain was almost 10%,” he added.

According to Fortune, gold is the best investment if you’re looking for an asset that’s fairly inflation-proof since it’s generally expected to increase in value over time, regardless of what’s happening in the economy. The article also pointed out that from 1971 to 2024, the stock market delivered average annual returns of 10.7%, while gold had average annual returns of 7.9%. While gold doesn’t offer higher returns than the stock market in the long run, it provides consistency during volatile markets. If you’re fed up with constant market swings, you can add some gold to your portfolio to diversify and prepare for the worst-case scenario.

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If you don’t want to worry about storing gold, you could invest in a gold IRA. Stanzione pointed out that the easiest way to buy Gold is via an ETF such as GLD. Those looking for more reward and who can handle the risk could consider a leveraged ETF, such as UGL, which moves around twice the price of GLD. If you want to add some additional exposure to gold, you can invest in a gold mining ETF, such as GDXJ or GDX, which are both having a great year and can increase further if the seasonal pattern continues.

“When gold was $35 back in the 1920s and 1930s, that would buy a very nice men’s suit. Today, at around $3,300 an ounce, gold will still buy a very nice men’s suit. Gold keeps pace with inflation and gold retains its value,” Stanzione said.

Index Fund

“If I only had $1,000 and wanted to build wealth, I’d put it in an S&P 500 index fund,” explained David Materazzi, stock market expert and CEO of Galileo FX. “It holds strong businesses, spreads risk and has a long history of solid returns.” An article on Business Insider pointed out that the S&P 500 is often used as a benchmark to measure performance for investors because the stocks in it account for approximately 80% of the total value of all publicly traded U.S. stocks. It’s also worth noting that on top of gaining exposure to a diversified group of stocks, the index has returned an average of about 10% per year.

The most common funds are the Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF Trust (SPY), which offer exposure to the largest companies and provide a diversified option for someone looking to get started with $1,000. You won’t have to worry about losing your money with this investment and you can see the power of compound interest if you hold on to it.

Investment Considerations

As you can see, the experts we spoke with offered straightforward investment options. If you don’t feel like you have enough to invest in the stock market or gold, remember that the goal is to get started where you are, so you have compound interest on your side. By investing $1,000 right now, you’re getting started with investing and you can allocate more to your portfolio once your savings increase.

“I wouldn’t touch crypto, hot stocks or anything hyped. If I wanted to dig deeper, I’d look for one boring, cheap company with real cash flow and no buzz,” Materazzi added. Suppose you’re hearing about an investment through social media or celebrity influencers. In that case, you’re going to want to exercise caution because when something seems too good to be true, it always is.

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