Gold bars and coins: Pros and cons investors should know this May

Gold bars and coins could be a smart investment worth considering this May. Getty Images/iStockphoto

If you gauge the health of an investment by its price and the interest in it, then gold has to be at the top of the list in recent years. Not only did gold investing surge to an 11-year high in 2023, but the price of the precious metal shattered numerous records in 2024. And that price surge continued in the early months of 2025. Now priced at $3,324.57 per ounce, gold is up by 61% when compared to the price it started 2024 at. And there are strong indications that the price could continue to rise in the weeks and months to come.

And while there are numerous ways to invest in the yellow metal, gold bars and coins, specifically, are both well-known and considered safe by both beginners and experienced investors. Still, the benefits of gold bars and coins, specifically, ebb and flow in part due to market conditions and broader economic concerns. So while it can be a valuable part of a diversified portfolio, there are some specific pros and cons that investors should keep in mind this May. Below, we'll detail four of them.

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Gold bars and coins: Pros and cons investors should know this May

Here are four important pros and cons behind investing in gold bars and coins to know this May;

Pro: A rising price

You always want to buy in at a lower price with an asset, if you can find the right time to do so. And while $3,324.57 isn't anyone's idea of a low price, it very likely will be soon if the metal continues its upward trend toward the $4,000 mark. Not only will this make your gold bar and coin investments more valuable in a short period of time, but you could also, theoretically, sell them for a quick profit. That's a rare opportunity that doesn't often present itself with an asset better known as an income-protector versus an income-producer. But that's the reality for those looking to invest in gold bars and coins this May.

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Con: A rising price

A rising price, however, could also be detrimental for those who haven't yet got started with gold bars and coins. Fortunately, there are ways to circumvent this. Fractional gold, for example, offers a lower entry price point for investors while still getting invested in bullion. Prospective investors should also monitor the market daily, as price fluctuations are inevitable. When the next decline arrives, they could move in to buy at a reduced price. That all said, over time, gold tends to only increase in price, so don't wait for a perfect opportunity to act, either, as it's unlikely to materialize.

Pro: Easy access

Now is one of the best times in recent memory to invest in gold bars and coins as they're ubiquitous and easy to access online or in person. Costco and Walmart have selections for shoppers to choose from, either when shopping in the store or by browsing their websites. Multiple gold investing companies also have online presences and detailed customer support for interested investors, in addition to your local jewelers, who can offer a personalized approach that some of these other options may not be able to. But if you want to invest in gold bars and coins now this month, it shouldn't be difficult to do so.

Con: Storage costs

Sure, a gold exchange-traded fund (ETF) or gold individual retirement account (IRA) doesn't come with the same tangibility and inspection qualities that gold bars and coins, do. But they also don't come with the same storage costs you may have to contend with by investing in bars and and coins. Storage could be costly as could the insurance required to protect your investment. Combined with the higher price gold is selling for now and limited financing thanks to a broad array of economic concerns, the storage costs here will need to be closely accounted for this May in order to ensure a proper fit in your broader portfolio.

The bottom line

Gold bars and coins offer investors unique opportunities and, potentially, costly drawbacks if not managed properly this month. By understanding these specific pros and cons now, investors can better manage their gold investments this May and in the months and years to come. No matter how you approach your physical gold options this month, however, be sure to follow the traditional guidance of limiting gold to no more than 10% of your overall portfolio to avoid crowding out other, reliable income-producing assets at the same time.

Matt Richardson

Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.