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The price of gold surged in 2024, breaking numerous price records on its way past the $2,700 mark. But it hasn’t slowed much in 2025 and is inching closer to a new record price. And the reasons why are multiple. Gold can be a smart hedge against inflation – which has risen in the last three consecutive months. And it can be a reliable diversifier for a portfolio otherwise too heavily invested in stocks and bonds. Plus, over time, some investors may even be able to earn some income from the precious metal.
That all noted, the gold investing market – which hit an 11-year high in 2023 – isn’t the same as it was in recent years. With inflation rising, interest rate cuts seemingly on pause and geopolitical tensions still high, prospective gold investors should first begin their process by asking some simple, but critical questions for 2025. Below, we’ll break down three to consider now.
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3 gold investing questions to ask for 2025
Want to improve your chances of gold investing success this year? Then start thinking about the answers to the following three questions now:
Will the price rise again?
The price of gold is close to surpassing the $2,800 mark, which would be yet another record amid a run that’s seen gold crack numerous price highs over the last year. Waiting for that to happen or for gold to start selling significantly above $2,800, then, would be a mistake. After all, gold’s price, historically, tends to only move in one direction – up. Delaying an investment in the hope that the price of gold will dip is dangerous. Not only would you lose out on the portfolio benefits gold could provide in the interim but the price may not even fall as hoped for. So don’t get priced out. If you know you could benefit from a gold investment, get started sooner rather than later.
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Why should you invest in gold now?
Why are you considering a gold investment now rather than in the past? Having the answer to this question can better determine your potential success. If you want to invest to hedge against today’s uneven inflationary climate or to add some protection to your portfolio to offset stock market volatility, then you’ll be more successful than if you decided to invest now to turn a potential, quick profit. Why you’re investing in the metal is critical to understand as gold doesn’t produce income in the same ways that other assets do. So go into the process clear-eyed and realistic about what gold can (and can’t) do for you now, in 2025.
How much should you invest?
If you’ve determined that it’s worth investing now, before the price spikes again, and have decided to get started for the right reasons (a hedge against inflation, portfolio diversifier, etc.) then you’ll next need to determine how much to actually invest in the yellow metal. And this can be more difficult to determine than it first seems. Experts recommend limiting your gold investment to a maximum of 10% of your overall portfolio. Where you fall between 1% and 10%, however, will be specific to your lender profile and reasons for investing in the metal. So carefully determine how much you can (and can’t) afford to lock away in gold and consider speaking to a trusted financial advisor or reputable gold company who can better guide you.
The bottom line
A gold investment has multiple benefits but it’s often not as frequently known and understood by investors as well as other assets are. So by investigating the metal carefully, and by formulating specific answers to the above questions, investors can better position themselves for gold investing success both during this record-breaking price surge and, potentially, for multiple years to come.
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