The gold price per ounce broke numerous records in the past year, crossing the landmark $3,000 threshold in mid-March and then climbing above $3,300 per ounce — a new record — in recent weeks. Since that milestone, the precious metal has climbed even higher. It’s reached over $3,400 per ounce this week, with experts suggesting further increases could be on the horizon.
Factors like global instability, inflation concerns and robust central bank buying have all contributed to gold’s remarkable rise over the last few months. This perfect storm of economic conditions has also led more investors to turn to the precious metal as a safe haven for their wealth. But as gold continues its historic climb, knowing how to navigate this market is essential.
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Below, industry veterans share five key insights to help you make informed decisions about gold investing in today’s economy:
The price of gold will continue to rise over time
Several forces are driving gold costs higher, and experts believe these trends won’t stop anytime soon. Brandon Aversano, CEO of The Alloy Market, points to global instability as a key factor.
“Central banks around the world, particularly China and emerging markets, are buying gold at a record pace,” Aversano notes.
Combined with U.S. debt concerns and persistent inflation, these conditions support gold’s continued climb.
Currency concerns are another major driver. Phillip Patrick, a precious metals specialist at leading gold IRA dealer Birch Gold Group, explains that since 2022, central banks worldwide have purchased over 1,000 tons of gold.
“Nations are diversifying away from currencies that can be frozen or sanctioned,” Patrick points out.
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The amount you invest in gold should remain limited
While gold offers protection during uncertain times, experts caution against overinvesting.
“[The right allocation] depends on your portfolio mix, your risk tolerance, how close you are to retirement and even your evaluation of the state of the world,” says Philip Diehl, president of U.S. Money Reserve.
Responsible diversification is key.
“Gold should never be your only asset,” advises Patrick. “Its primary role is to offset risk, especially during financial shocks.”
He shares how one client, a retired firefighter, chose to move 20% of his IRA into gold after assessing his comfort level with economic risks. Most financial experts, however, recommend keeping gold investments between 10% and 15% of a portfolio.
Pick the right gold investment vehicle as prices reach unprecedented levels
With gold at record highs, your choice of investment vehicle matters more than ever.
Here are three options best suited for the current market:
- Physical gold (gold bars and gold coins): As uncertainty looms, physical ownership of precious metals gives the most security. “If your goal is to preserve and grow your wealth over time [with lower risk], you should own physical gold,” advises Diehl.
- Gold exchange-traded funds (ETFs): These offer simplicity for those looking to capitalize on gold’s momentum without storage concerns. Gold ETFs are attractive now as institutional investors pour into the gold market, potentially driving prices higher. Just remember, these don’t provide the same crisis protection as physical ownership.
- Gold mining stocks: With gold prices soaring, mining companies are seeing improved profit margins. This approach offers leveraged exposure to gold’s upward trend. However, it comes with company-specific risks that require careful selection in today’s volatile market.
Be aware of timing and market volatility factors
“Timing the market, regardless of the asset class, is always a challenge,” says Aversano. Right now, he recommends monitoring geopolitical risks, dollar strength and global demand trends. And instead of waiting for an ideal price, consider your investment horizon. The longer you plan to hold gold, the less day-to-day price fluctuations should matter.
Diehl recommends a dollar-cost averaging approach to navigate market volatility.
“Buy now and add to your holdings when prices dip,” he recommends. This strategy allows you to build your position while benefiting from higher and lower price points over time.
Understand gold’s unique relationship with interest rates today
“Traditionally, rising interest rates put downward pressure on gold,” says Patrick. But this pattern has evolved in recent years. “Since 2022, gold’s price has risen alongside interest rates and a relatively strong dollar,” he notes. “[More are viewing it] as an insurance policy — not just against inflation, but against financial sanctions and dollar weaponization.”
The bottom line
“Gold stands alone [as] the only commodity that thrives in uncertainty,” Patrick says. Its outlook is excellent. But before investing, consult a trusted financial advisor about the right allocation for your situation. Weigh your long-term goals and risk tolerance. Then, determine which gold investment approach aligns best with your needs and timeline.
Sharon WuSharon Wu, a senior writer with over a decade of experience, specializes in consumer-focused content covering home and finance topics such as insurance, investments, credit, debt, mortgages and home security.
