Is Gold a Good Investment Right Now?
Gold is enjoying quite a surge. As of press time on Oct. 30, the spot price for one troy ounce is about $4,009, after hitting a historic high of $4,378.97 earlier in the month. That’s a striking appreciation from $1,650.60 on Nov. 1, 2022.
Much of this strength comes from a weaker U.S. dollar, persistent central bank buying and government policy responses to a tense geopolitical climate. Historically, investors have turned to gold for its safe-haven appeal, especially when confidence in other markets wavers. As a physical metal, it feels tangible in a world of digital uncertainty. Still, it’s easy to get swept up in market exuberance and dive in at the wrong time. The odd twist is that stocks are also roaring, leaving many wondering how gold and equities can thrive together when they’re often portrayed as opposites. Here’s what you should know about investing in gold now:
— Why would gold make sense to buy now?
— Why exercise caution in gold investments?
— What’s the best way to own gold?
— Why gold and stocks can rise together.
— How much gold belongs in a portfolio?
— A word on gold IRAs.
— Platinum as an alternative.
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Why Would Gold Make Sense to Buy Now?
Gold follows a different driver set from equities or bonds. When geopolitical strategies misfire, inflation spikes, currencies lose strength or political leadership reads the room wrong, gold tends to hold its own as a hedge against macro mistakes.
Central bank and exchange-traded fund, or ETF, demand have also built a sturdy structural foundation. For investors seeking diversification or protection from currency swings, gold can make a portfolio feel steadier, even when headlines don’t.
Why Exercise Caution in Gold Investments?
The adage “buy low, sell high” is hard to apply when gold sits at record levels. Without a dramatic economic shock, near-term upside could be limited. Depending on how you invest, storage, insurance and fund fees may erode value if prices flatten.
Gold also does not produce income. Holding too much can mean missing higher-growth opportunities elsewhere. Additionally, the hedging narrative is not an absolute. While gold often moves opposite stocks, that isn’t guaranteed. Liquidity can also be a problem; selling physical gold is not as fast or frictionless as unloading a stock.
What’s the Best Way to Own Gold?
There’s no one-size-fits-all answer. Each method carries pros and cons, depending on your risk tolerance, liquidity needs, cost sensitivity and intent.
Physical Gold Bars or Coins
Pros
You own the metal outright, which appeals to those who value self-custody. Purists also believe that gold’s highest value is that it is a hedge against major forms of economic disruptions. In a severe financial disruption or cyberattack, physical ownership may offer access that a brokerage account cannot.
Cons
You must pay for storage, insurance and security. Physical gold is sold by authorized bullion dealers, mints, local coin or precious metal shops that will charge a bid-ask spread. Finding a reputable source is critical to ensure purity and authenticity of the bars.
Gold-Backed ETFs or Funds
Pros
Easy to buy or sell, balancing simplicity, liquidity and expenses.
Cons
Management fees, counterparty risk and tracking errors are possible since you do not hold the gold directly.
Gold-Mining Stocks or Funds
Pros
Offers indirect exposure through companies that extract gold, with potential dividends and leverage to rising prices.
Cons
Exposure to company, operational and management risk of the mining companies.
[READ: The 7 Best Copper Stocks to Buy Today]
Why Gold and Stocks Can Rise Together
It is not as contradictory as it looks. Gold and equities are influenced by different forces, and both currently face conditions that support their climb. Markets can simultaneously sustain both optimism and caution.
Investors may chase growth while still paying for protection. By holding equities for potential gains and gold as insurance, investors are capitalizing on both a risk-on period and risk premium.
Strong institutional demand, especially from central banks and ETFs, also plays a role. Basic supply and demand dynamics can create the illusion of correlation, even when motivations differ.
How Much Gold Belongs in a Portfolio?
Diversification can be an investor’s friend, and gold is no exception. A professional financial advisor can also be invaluable, as they can recommend a portfolio that will embrace gold’s positive attributes, while avoiding an emotional overreaction to volatility.
Many financial advisors may suggest something like 5% to 10% of your portfolio in precious metals (including gold). This can give you meaningful exposure without dominating your portfolio. For those particularly wary of debt levels, policy instability or inflation, up to 15% may be reasonable. Anything beyond that risks dragging performance if gold stagnates.
Gold should be treated as insurance, not as a growth engine. It’s there to steady the ship when other investments list, not to drive returns.
A Word on Gold IRAs
An investor can also tuck their gold allocation into their IRA or brokerage account. However, there are strict guidelines around gold IRAs to ensure that they pass muster with the IRS. Also, for anyone approaching required minimum distribution age, physical holdings can complicate timely withdrawals and valuation.
That said, a gold IRA allows you to invest in physical gold and other precious metals as part of your retirement portfolio. Setting up a gold IRA requires a self-directed IRA and a reputable custodian, and investments must follow the aforementioned IRS rules. Unlike stocks or bonds, gold does not generate dividends or interest; your returns are dependent on the asset’s appreciation. You’ll need to consider whether the benefits of a gold IRA align with your long-term financial goals, especially given its special considerations and risks.
Platinum as an Alternative
If you are already exploring gold, don’t forget that there is an entire family of precious metals that may also carry appeal, including silver, copper, palladium and platinum.
Platinum deserves a glance as gold’s undervalued relative, as it is less widely held and its value swings with industrial demand rather than investor sentiment. This smaller market size and volatility means potential upside, but also higher risk. A small allocation within an overall precious metals strategy can make sense, but it is no replacement for gold’s historical safe-haven role.
The Bottom Line
Gold’s current strength reflects both economic anxiety and structural demand. At over $4,000 an ounce, it commands respect, and caution. For investors seeking diversification, modest exposure makes sense, but enthusiasm should be tempered by reality: gold doesn’t pay dividends, and its price can plateau for years.
Still, it’s easy to see why the metal continues to hold emotional and financial sway. In a world of shifting currencies, political tension and digital volatility, gold offers a sense of permanence few assets can match. For some, that reassurance alone is worth the allocation.
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Is Gold a Good Investment Right Now? originally appeared on usnews.com
Update 10/30/25: This story was previously published at an earlier date and has been updated with new information.