4 gold investments to consider for 2025 (and 4 to avoid)

Gold has always held a unique position as a hedge against economic uncertainty, inflation and currency fluctuations — but the bull run that occurred over the past year may have been an even bigger selling point for investors. Starting the year at about $2,063 per ounce, gold's price moved upward quickly, hitting numerous new price records before peaking at over $2,736 per ounce in late October. That uptick in price helped to attract lots of new investors to the precious metals market.

While the price of gold has dipped a bit since that point, many analysts still expect gold to hit the unprecedented milestone of $3,000 per ounce soon. So, if you've been planning to join the new and seasoned investors who have added gold to their portfolios recently, you may want to make your move quickly. Gold's price tends to fluctuate over the shorter term, so if you wait, you could miss out on the opportunity to buy gold at a lower price point.

Before you start investing in this precious metal, though, it's important to recognize that not all gold investments are created equal. As we look ahead to 2025, certain gold assets stand out as potentially promising opportunities, while others carry risks that may outweigh their potential rewards.

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4 gold investments to consider for 2025 

Investing in these gold assets could pay off next year:

Gold bars and coins

Investing in physical gold in the form of gold bars and coins remains one of the safest ways to capitalize on potential price increases. These tangible assets provide direct ownership of gold and are highly liquid and universally recognized, making them an excellent choice for those seeking a straightforward hedge against economic instability. And, given all of the economic unknowns as we close in on 2025, making this type of gold investment could be a smart move to help protect your portfolio.

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Gold ETFs

Gold exchange-traded funds (ETFs) offer a convenient and cost-effective way to gain exposure to gold without the need for storage or insurance. These funds closely track the price of gold and are easily traded on stock exchanges, making them accessible to most types of investors. And with the expectation that gold prices will continue to rise over time, gold ETFs provide a flexible option for investors looking to benefit from upward momentum without committing to physical assets. 

Gold mining stocks

Gold mining companies often experience amplified returns when gold prices rise, making these stocks an attractive option for growth-oriented investors. Stocks in major gold producers could see significant gains if gold's price climbs in 2025, so it makes sense to consider this type of gold investment in the new year. Investing in mining stocks also allows you to benefit from operational efficiencies and discoveries that can further boost profitability.

Gold royalty and streaming companies

Royalty and streaming companies could be another smart option for 2025. These companies provide financing to mining operations in exchange for a percentage of future production or revenue. This model insulates them from the operational risks associated with mining while still allowing them to profit from rising gold prices and their diversified portfolios and lower exposure to production costs make them a stable investment for those seeking exposure to the gold market.

4 gold investments to avoid for 2025

It could also make sense to avoid these gold investments right now:

Leveraged gold ETFs

While standard gold ETFs are a solid investment, leveraged ETFs are a different story. These funds use borrowed money to amplify returns, which also increases potential losses. Leveraged ETFs are designed for short-term trading, not long-term holding, and can be highly volatile. With gold's trajectory uncertain despite optimistic predictions, these instruments are too risky for most investors right now.

Speculative junior mining stocks

Junior mining companies, known for exploring and developing new gold deposits, can offer massive upside potential but are also incredibly risky. Many of these companies operate without generating consistent revenue, relying on capital markets for funding. If gold prices fail to rally as expected, these speculative investments could result in significant losses. 

Gold futures contracts

Gold futures contracts allow investors to speculate on the future price of gold, but they require a high degree of expertise and risk tolerance. Small price movements can lead to substantial gains or losses, so unless you're an experienced trader, futures contracts are best avoided, especially in a potentially volatile gold market.

Gold jewelry as an investment

While gold jewelry has intrinsic and aesthetic value, it is typically not a practical investment vehicle. High markups, craftsmanship costs and limited resale value make jewelry an inefficient way to capitalize on rising gold prices. Purer forms of gold like coins, bars or ETFs tend to offer better returns.

The bottom line

Given the current economic landscape, 2025 could be a pivotal year for gold investors. Focusing on reliable investments like physical gold, gold ETFs and established mining companies can help you capitalize on it. At the same time, avoiding risky ventures such as speculative stocks, leveraged instruments and risky futures contracts will protect your portfolio from unnecessary volatility. By staying informed and strategic, you can position yourself to benefit from what could be an exciting year for the gold market.