Will gold prices keep rising? Here's what experts think
Gold prices have had a great run recently. Last week, the spot price of gold topped $2,000 for the first time since its all-time peak in 2020.
That's good news for investors, especially as gold prices continue to hold steady. But what does it mean for the future?
Gold is generally seen as a stable investment choice for your portfolio, a hedge against inflation and a way to diversify your investment assets. And amid this year's uncertainty in the banking sector and ongoing talk of recession, many Americans may be looking for some added stability. With gold prices on the rise, it could be worth considering.
We asked a few experts what the recent higher gold prices could mean for people looking to invest, and whether people considering adding gold to their portfolios can expect prices to keep rising.
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Will the price of gold keep rising?
While it's near-impossible to predict what any market will do in the future, some experts say the recent increase in gold prices could be a good indicator for the months to come.
"From an investor perspective, we didn't see the peak yet, and the peak may be much higher than $2,000 - $2,500 in the long term," says Baruch Silvermann, investor and CEO of The Smart Investor, a financial education website.
Silvermann predicts that inflation will continue over the next few years and expects lower interest rates to come from the Fed, "leading investors to seek out tangible assets that can withstand inflation."
Some investors are turning to gold during these increasingly uncertain times, agrees Samuel Leach, an investing expert and founder of Samuel & Co. Trading. Given today's economic uncertainty, he predicts gold prices will keep increasing this quarter and potentially hit $2,100 — surpassing its previous all-time high.
If you're considering using gold to diversify your investments, then explore your options for adding gold to your portfolio today.
Should you invest in gold now?
Historically, gold prices tend to increase when the value of the U.S. dollar goes down — like during more inflationary periods, for example. That means gold can make for a good way to diversify your portfolio while prices are high and the possibility of a recession remains.
"I think having gold in your portfolio is a great protection against the increasing uncertain risks we are seeing," Leach says.
As markets fluctuate, diversifying with a mix of asset classes — stocks, bonds, funds, commodities like gold and other alternative assets — can potentially help you maintain some stability overall even when some are more volatile than others.
That's why, while now may be a good time to invest, you may not want to put all your money into one type of investment — including gold. Gold can be a great way to diversify and keep some stability amid inflation, but it may not help you see as high gains over time as some other investment options can. That's why it's important to keep your long-term goals in mind.
You should always weigh any new investments with your personal financial goals and overall financial situation before you make any decision. And if you're uncertain, consider talking to a professional, who can help you determine the right investment options for you.
Compare different gold investment options available now using the table below.
