Does gold investing make sense with the price high? Here's what experts say.

In recent years, gold has caught investors' eyes, especially since the start of 2024. The price of gold has been on a steady climb and even hit a new all-time high of $2,672 per ounce in September. This surge has pulled in even more investors, fueling further price increases. But now with gold prices at record levels, many are asking: Is it still smart to buy gold? Or should investors wait for a pullback?

We spoke with three financial advisors to get their perspectives on where gold prices might go from here. Below, we'll detail what they're saying about investing in the precious metal today.

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Does gold investing make sense with the price high? 

Investing in gold can still be smart despite high gold prices, according to Steven Conners, founder and president of Conners Wealth Management.

While many investors think of gold primarily as a hedge against inflation, Conners argues its appeal is broader. "Inflation isn't the [sole] reason to own gold," he says. Amid geopolitical tensions and other economic concerns, it may make sense to add the protection gold can provide to your portfolio. This perspective underscores gold's role as a safe-haven asset during global instability or uncertainty — not just as an inflation hedge. 

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Why experts favor gold now

Gold's recent price surge hasn't deterred financial experts from recommending it. Some see the current market as a prime opportunity. "If [you buy] gold at these prices, [you] may be timing it just right," says Conners. He points out that if gold surpasses its previous peak from decades ago, "it [could] begin a new stretch of outperformance … from a technical standpoint."

While it's tough to predict exactly where gold's price is headed, industry veterans say the long-term outlook matters more.

"Gold is a long-term commitment and purchase," explains American Prosperity Group's CEO and founder, Mark Charnet. He argues that today's prices mean little when considering gold's potential over the next 10 to 20 years. This long-term thinking aligns with broader economic concerns.

"We believe it's a very good time to consider gold (and silver) as part of [your] portfolio, [even though] it trades at record highs," says Omar Qureshi, managing partner at Hightower Wealth Advisors St. Louis.

Qureshi sees gold as a safeguard against potential economic turbulence, including recession risks and growing national debt. In his view, these factors could weaken the U.S. dollar, making gold an attractive alternative.

Strategies for investing in gold at current prices

With gold prices at record highs, you might wonder, "What's the best way to invest in it?" The experts we spoke to suggest two main strategies: taking a long-term view and buying gold in small increments. Here's how these approaches can work in your favor:

Keep a long-term investment perspective

When it comes to gold, thinking long-term can help you ride out short-term swings. Qureshi acknowledges that gold can be a volatile asset class. But he advises that investors who understand why they're buying gold can start at current prices and keep adding to their holdings, even as the market fluctuates. Waiting for prices to drop might backfire as "[that] contains a lot of risk in an upward trending market … you may never get the chance to buy it," Qureshi says. This aligns with Charnet's view that gold investments should be seen through a lens of 10 years or more.

Try dollar-cost averaging

Worried about gold's high price? Consider "dollar-cost averaging," or buying fixed, smaller amounts over time. Conners calls this an investor's approach, rather than a trader's. For example, "[you could buy] half the amount you were going to invest in now. If it experiences a drop, buy the other half then," he suggests. This method can help you avoid the stress of trying to time the market perfectly. By spreading out your purchase, you can benefit from both high and low prices — reducing the impact of short-term fluctuations on your overall investment.

The bottom line

Investing in gold now can make sense as part of a diversified portfolio. Qureshi recommends allocating 10% of your growth holdings to precious metals, including gold and related mining stocks. This approach allows you to gain exposure to their benefits while maintaining a balanced investment strategy across various asset classes.

If you're ready to invest, consider starting small and building over time. Most importantly, talk to a trusted financial advisor about how gold fits into your big-picture financial plan. They can help you balance the rewards against the risks and align your gold investments with your long-term goals.