How a gold investment could boost your portfolio in 2025
One of the most popular and successful investments in recent years is also one of the more traditional ones: gold. Investing in the precious metal surged to an 11-year high in 2023 and the price broke multiple records in 2024, the latest of which came in late October. And it's possible that the metal could hit a new price record of $3,000 per ounce, possibly even before December 31.
Understanding this dynamic, those who are considering a gold investment now, as well as those who have already got started, may be wondering how the precious metal could help their portfolio in the new year. While gold's benefits remain traditional and reliable, they can be particularly beneficial now. Below, we'll break down three ways a gold investment could boost your portfolio in 2025.
Learn more about the gold investment options available to you here.
How a gold investment could boost your portfolio in 2025
Here are three clear ways an investment in gold could enhance your overall portfolio for the new year:
By continuing its current price surge
No one knows when gold's current price surge will end. It surpassed the $2,700 per ounce mark in October but then dropped slightly to begin November. Now in the $2,600 range, gold could break additional price records in 2025. And if you're invested before it does, you could earn a quick (and substantial) profit. "With economic uncertainty, rising inflation and central banks maintaining interest in gold as a reserve seat, prices are likely to climb," Brandon Aversano, founder of The Alloy Market, recently told CBS News.
This is a rare opportunity for an investment better known for portfolio protection versus income generation. So don't let it pass by. Waiting could cause the price to become fully out of reach.
Get invested in gold online today.
By protecting against other asset volatility
Gold, despite some minor drops in price, tends to only move in one direction: upward. Can you say the same about your other assets, particularly over the last few years? If those assets are more volatile then it makes sense to protect against that risk with a layer of gold added to your portfolio. Because those assets are more likely to produce greater income, however, the amount of gold you add should be minimal. An amount of 10% or less of your overall portfolio, then, should help protect against economic headwinds to come in 2025.
By diversifying should inflation rise again
The path down to the Federal Reserve's target 2% inflation rate goal has been a bumpy one, with the latest inflation reading for October showing an increase. Now at 2.6%, inflation is more than half a percentage point higher than the Fed wants it to be. If the November report released on December 11 shows another hike, it could be problematic for the broader economy — and your portfolio. Investing in gold before that happens, however, could help lift other assets more affected by these developments. That's because gold tends to maintain and even rise in value during inflationary periods. And that ability is unlikely to change in a new year. Consider investing in the metal now, then, to build in some reliable protection in advance.
The bottom line
A gold investment isn't right for every single adult. But for those looking to boost their portfolio in 2025 by adding a potential income-producer, protector against asset volatility and diversifier amid inflation concerns, it may be. So start exploring your gold options now while you can still potentially invest at a reasonable entry point. Waiting for 2025, when competition could increase based on the aforementioned considerations, could prove to be costly.
Have more gold questions heading into 2025? Learn more about your options here.
