Bloomberg
With an increase in investing in the metal in 2023 and a remarkable price surge in 2024, beginner investors may be hesitant to pursue gold in 2025. With less knowledge and familiarity than most have with assets like stocks, bonds and real estate, a gold investment may seem like a risk worth avoiding. This is especially true for beginners just getting started with their long-term savings and retirement plans.
That said, avoiding a gold investment this year could be a mistake, particularly for beginners.
Famous for its ability to hedge against inflation, diversify portfolios and stability amid economic uncertainty, gold is particularly critical to invest in now, particularly for beginners. If you’re unsure if it’s right for you, however, it helps to know some signs to look for prior to getting started. Below, we’ll detail three to know for 2025.
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3 signs beginners should invest in gold in 2025
Investors should carefully evaluate their prospective assets before getting started, especially with a non-conventional investment like gold. So it helps to first know what to look for. Here are three signs that beginners could benefit from incorporating gold into their portfolio now:
Their portfolio declined in 2024
U.S. stocks hit multiple all-time high records in 2024. But the market also plummeted in December after the Fed hinted at a slower pace for interest rate cuts in 2025. So if you’re a beginner investor who didn’t see much luck in 2024, it may be a sign that you need to add a protector and diversifier to your portfolio.
Fortunately, gold can provide both. By frequently maintaining and even rising in value during uneven economic cycles, gold can protect your portfolio when other assets underperform. And it could continue to do so in 2025, particularly considering the two consecutive increases in inflation in the most recent reports from the Bureau of Labor Statistics. Against this backdrop, then, it may make sense to add a layer of gold to your portfolio for 2025.
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The price is still rising
It’s always smart to invest in an asset that’s growing in value – before the entry price point becomes prohibitive. And now could be that time for beginner gold investors. Gold’s price surged past multiple records in 2024 and, after a brief dip in the final weeks of the year, is now approaching the $2,700 mark again. A price in the $2,800 range would mark a new record, potentially putting it out of reach for many. It’s beneficial to get invested now, then. This will allow beginners to secure a slightly cheaper entry price and a position to quickly grow their assets in the weeks and months ahead.
They have a long-term investment horizon
Just because you’re a beginner investor in gold doesn’t necessarily mean you’re a beginner investor overall. But if you’re younger and just starting to experiment with your investments, you may be well-served by investing in gold now. Younger investors have a long-term horizon in which they can buy, sell and buy more gold, allowing it to perform well over time. This is critical because gold is more of an income-protecting asset and less of an income-producing one. Seniors, meanwhile, and older adults will generally need more of the latter type. But if you’re starting 2025 by opening a retirement account or IRA, it may make sense to add gold to it now.
The bottom line
A gold investment in 2025 can be beneficial for a wide swath of investors but perhaps most so for beginners. So, if you saw your portfolio suffer from uneven performance in 2024, want to get invested in a rising asset and have a long-term investment horizon in which the precious metal can help, now may be the time to invest in gold. Just be sure to do so in a strategic manner, as you would with other assets, limiting the precious metal portion of your portfolio to 10% or less.