How to take advantage of gold's rising price, according to experts

Gold prices have been rising in recent months and now sit around all-time highs. The reasons for this bump are many, but high inflation, geopolitical tensions and the precious metal's role as a strong portfolio diversifier are just a few. 

No matter what's driving it, though, it means opportunity for investors.

Do you want to take advantage of gold's rising prices? Here's what experts say to do.

Find out how a gold investment could benefit your portfolio today.

How to take advantage of gold's rising price, according to experts

A few ways you can take advantage of today's rising gold prices include:

Invest now before the price gets out of reach

If you want to be on the winning side of gold's upswing, you'll want to start lining up your purchases now. Experts say prices could rise on gold in the near term — and possibly longer — if high inflation and the global political landscape remain unchanged.

"It's likely that gold will stay elevated for an extended period of time," says Alex Ebkarian, co-founder of Allegiance Gold. "It's also possible that it may trade even higher depending on how geopolitical tensions and economic issues play out over this year and next."

Gold prices have already grown significantly just this year. The average gold price per ounce was hovering near $2,000 in January 2024. Now it's nearly $2,400 per ounce (as of April 22, 2024).  

Explore the benefits of gold investing online now.

Consider gold stocks and ETFs

If you're itching to turn a profit on gold, experts say to look toward gold stocks or gold exchange-traded funds (ETFs) that track the price of gold. Gold ETFs are pooled investment securities that you can buy and sell, much like traditional stocks. 

Ebkarian says these are smart "if you're looking for a short to medium term investment or for day trading."

Just do your research, Ebkarian says, as not all ETFs are created equal. 

"Precious metal ETFs expose you to counterparty risk since ETFs are managed by custodians and a lot depends on the quality of each fund's operations and management," Ebkarian says. 

Stop by your local big box store

If you're intimidated by precious metal investing and just want a simple way to buy in, forget researching gold stocks or opening a new account like a gold individual retirement account (IRA). Instead, just stop by your local big box store, like Costco or Walmart, and pick up some gold bars yourself.

"You can buy physical gold bars at Costco," says Kevin Curley, a wealth advisor with Global Wealth Advisors in Dallas. "They have a small markup to the spot rate, and then you can store them in your safe at home or in a safe deposit box."

A nice benefit to this method is it can give you a hedge against inflation, which has ticked up the last two months, according to government data.

"Physical gold stored at home can be an excellent option as a hedge due to its lower cost over time compared to other investments like a gold ETF," says Brett Elliott, director of marketing at APMEX. 

Use it to protect against volatile markets

While gold prices are rising, other investment markets are faltering. The S&P 500 took a turn in April, and the NASDAQ has dropped considerably in recent weeks as well. 

Gold can provide a nice barrier in times like these, diversifying your assets and protecting your wealth when other markets are volatile.

"Gold is an excellent diversifier against traditional equities. It also tends to outperform during recessions, which is when equities tend to underperform," Elliott says.

Know the downsides, too

Gold investing certainly has benefits, but there are drawbacks to the precious metal, too. For one, it typically won't lead to huge returns — at least compared to the stock market and other investments, for example. It can also be a pain to store, especially if you purchase a lot. (Though with a gold IRA, your custodian will handle the storage on your behalf.)

That said, if you do opt to invest in gold, be aware of how much you devote to the precious metal. Most financial professionals recommend investing no more than 10% of your portfolio in gold.