In October 2024, the gold price soared to $2700 per ounce — a new record that attracted investors. The global uncertainty and fluctuating rates of interest drove people to look for safety in gold. Its strong performance, while moderated slightly, continued into the end of the year.
The price of gold fluctuated in recent weeks. And the economic changes we are experiencing may have an even greater impact. This raises concerns about the potential of gold in 2025 .
Does gold investment still make sense today? Answering that question is not always as simple as you might think. We asked financial experts to help you make a decision by analyzing the pros and cons for gold investment this year.
Find out now how you can add gold to your portfolio .
Is gold still a good investment? What are the pros and cons for 2025?
Investors’ perceptions of gold will change in 2025 as a result of economic shifts.
Miller Investment Management’s Rick Miller says that the world is in a state of uncertainty and turmoil. Many continue to rely on gold as a insurance against unexpected market drops.
Henry Yoshida is the co-founder and CEO of Rocket Dollar. He sees changes in the near future. Yoshida believes that the markets will need some time to assess new economic policies, as well as potential shifts in international trade. However, for those who are patient, there may be opportunities.
Yoshida says that gold prices will continue to rise once markets are comfortable with their path.
Find out more about gold investment today.
The pros of gold investment in 2025
Miller and Ruhee Rahod, the director of finance and operation at Bario Neal point out a few good reasons to look into gold this year.
- Rising Price Trajectory: “I expect to see Gold above $3,000 an ounce by the end of the Year,” Miller says. Gold has been on a strong upward trend, despite occasional flat periods. is up over 30% just in the last year.
- Gold often increases in value during economic and political changes. Rathod states that “as currencies weaken, and as the cost of living increases, [gold] maintains its purchasing power.” Metals have historically remained strong during recessions, wars, and market turmoil.
- Gold mining stocks, gold ETFs or physical gold bars are all options for investors. Gold ETFs allow for easy entry and exit, without any storage issues. If you’re not concerned about storage and prefer a tangible asset, physical gold is a popular choice.
- Diversification of your portfolio:Rathod explains that the value of gold tends to increase when other investments are declining. It is a great way to reduce the risk and volatility of an investment portfolio by purchasing some gold.
The Cons of Investing in Gold in 2025
Before investing in gold, you should consider these drawbacks:
- No ongoing income:Unlike bonds or stocks that generate interest, gold does not provide a regular return. Rathod says that the lack of yield can be a major drawback because it makes your profits dependent on selling gold at a higher value.
- Price Volatility Risk: It’s possible that the price trajectory of last year will not continue. Yoshida says that if inflows slow or stop, it could hurt the spot price. Investors who are short-term should be particularly cautious of market fluctuations.
- Increased competition from other investment: “A slower rate of rate reduction will put downward pressure gold prices because bond returns are rising,” Yoshida states. You might choose these options to earn income over gold in this situation.
- Storage fees and security costs: If you purchase physical gold, you must take into account the cost of secure storage as well as insurance costs . This can reduce your return, especially if you are buying smaller amounts.
What is the best amount to invest in gold for 2025?
Professionals in the industry recommend that you allocate a small portion of your portfolio for gold.
Miller states that “for [diversification], [most] would benefit from a 5% to 10% increase.”
Your situation will guide you in making the right decision. Rathod says that, for example, younger investors who are focused on growth might prefer lower allocations while those looking for stability in an uncertain economy may lean towards higher amounts.
Rocket Dollar’s Yoshida is more conservative, recommending a maximum 5% to everyday investors.
The Bottom Line
In 2025, gold investments will be worth, particularly for diversifying portfolios and protecting against financial instability. The decision to invest is a strategic one.
It’s crucial to know which types of gold are best for you before investing. Physical gold is easier to own than ETFs. You may wish to consider Gold IRAs if you are planning your retirement. These combines tax advantages and secure storage solutions.
Stay informed on economic trends and the policies of central banks that may affect gold prices. Remember that gold is best used as part of an overall investment strategy, not alone.
