5 things for gold investors to keep in mind now, according to experts

Investing in gold in today's economic climate requires a nuanced and strategic approach, experts say. Getty Images/iStockphoto

With economic headwinds and an uncertain outlook for the remainder of 2025, diversifying your investment portfolio is paramount for financial security. Spreading your wealth across different asset classes helps protect against inflation and market downturns that could erode your savings.

These days, gold stands out as a safe-haven asset. Its price soared past $3,400 per ounce in April. The impressive climb comes as central banks buy the precious metal at unprecedented rates, showing strong faith in it. While gold offers many benefits in unpredictable times, experts say investors should keep a few key points in mind before entering the market right now. Below, we'll detail five important items to consider.

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5 things for gold investors to keep in mind now

Despite gold's meteoric rise, Brandon Aversano, CEO of The Alloy Market, encourages investors to be mindful of market corrections that could affect prices in the coming months. Beyond that, here are five other things to know:

Gold remains an excellent portfolio diversifier

Henry Yoshida, CEO and co-founder of Rocket Dollar, a fintech platform helping investors tap alternative assets as a vehicle for retirement, warns against viewing gold primarily as a growth investment despite its recent price surge. "Gold is a safety asset that [people hold] for defensive purposes," he says. "[Know] that [it's] a diversifier to your portfolio, not a substitute for public equities."

Gold's non-correlation with stocks gives it unique protective power in your investment mix. When stock markets tumble during economic uncertainty, the precious metal often holds its value or rises. This relationship helps shield your total wealth during market downturns. If the price of gold retreats below the $2,900 level we saw in late 2024, Yoshida suggests it may be a good opportunity to buy the dip.

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It may be smart to buy or hold as central banks stockpile gold

"Central banks are buying gold to reduce reliance on the [United States] dollar," Aversano points out. As they do this, the gold supply shrinks for other uses. For you as an investor, this likely means continued upward pressure on gold prices.

Yoshida notes that central banks tend to be long-term investors. "So, their buys [will] likely continue into the near and intermediate term," he says. This sustained demand creates upside price momentum — a strong signal to consider holding your gold positions or adding more to your portfolio.

Overinvesting in gold (or any asset) is still risky

Balance remains crucial despite gold's robust performance. Yoshida advises keeping gold to a mid to high single-digit allocation of your portfolio.

If you're new to gold investing, he recommends starting even smaller. "You could initiate your position at a low single-digit range, given the current record high price levels," Yoshida says. This cautious approach exposes you to gold's benefits while protecting you from potential price corrections.

Gold maintains its value during economic instability

The world's most successful money managers continue to allocate big portions of their portfolios to gold, for good reason. "There's no alternative to gold for its diversification characteristics [and] its total lack of geopolitical and counterparty risk," explains Phillip Patrick, a precious metals specialist at gold IRA dealer Birch Gold Group.

Unlike stocks and bonds that face threats from policy changes or company failures, gold typically maintains its value regardless of market conditions. "It's the only universal, historic safe-haven store of value we've discovered," he adds. Through centuries of economic turmoil, gold has consistently preserved wealth when other assets faltered.

Owning physical gold gives you maximum control and security

"Only physical ownership fully insulates you from default risk," Patrick says. "There's no paper promise to break [and] no balance sheet to audit." While exchange-traded funds (ETFs) and futures contracts track gold's price, owning gold bars or gold coins gives you tangible assets outside the financial system.

Remember to plan your exit strategy before buying physical gold, though. "Most investors focus on buying but aren't necessarily planning how to liquidate in the future," cautions Aversano. He recommends researching reputable gold buyers in advance, especially established online options. When selling physical gold, you can expect to get at least 90% of the metal's current market value.

The bottom line

Even at today's record prices, gold is not a get-rich-quick scheme. "Think of [it] as a form of financial insurance [instead]," advises Patrick. "You need it before catastrophe strikes." But before diving in, consult a trusted financial advisor about your ideal allocation. Yoshida suggests deciding how much you want to invest in gold. Then, dollar-cost average throughout the year. This way, you build your position while reducing the impact of price volatility.

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Sharon Wu

Sharon 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.