The price of gold was trading at $4,010 per ounce as of 8:55 a.m. Eastern Time today. That’s a $38 increase from the same time on July 17 and a $657 increase from a year ago.
If you’re looking for an investment that is not tied directly to the variance of inflation, gold may be the right choice. In general, gold as an asset is typically expected to increase in value over time. One of the most common ways to purchase and manage gold is through a gold IRA, which can serve as a steadying force in a portfolio amid volatile markets. This may also be a good choice for those who want to invest in gold without the challenge of having to make storage arrangements for physical gold bullion.
Historical gold price chart
Gold is not always a home run investment. In a strong economy, stocks can perform better in the short and long term. From 1971 to 2024, the stock market delivered average annual returns of 10.7%. Gold delivered an average annual return of 7.9% over the same period.
However, during times of economic uncertainty, gold is a solid option as a risk-averse investment. For this reason, some may prefer to think of it as a store of value as opposed to an investment in the way that stocks and bonds are.
What does “spot gold” mean?
The spot gold price is the price to buy or sell gold immediately in an over-the-counter trade. This is an effective way for investors to monitor the demands and trends of gold investment at that time. Simply stated, a higher spot gold price means there is higher demand for gold in the marketplace. Notably, unlike futures contracts, the spot price is for an immediate sale.
When the future price is higher than the spot price, it is called contango. This is common when investing in commodities that have a high storage cost. When the futures price is lower than the spot price, it is called backwardation.
There are plenty of different factors that can impact the spot price, which is why that figure is constantly shifting up and down. Those looking to invest in gold need to be able to deal with this level of price fluctuation.
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What is price spread in gold trading?
A price spread is the difference between an asset’s offered purchase price vs. the price offered to sell it.
Similarly, in gold investing, the two key terms are ask price and bid price. The ask price is how much it costs to buy the gold, while the bid price is how much it can be sold for. Bid prices are always lower than ask prices.
The lower the spread between these two prices, the more liquid the market is. If there is a relatively small spread, that means the demand for gold is on the rise.
How to invest in gold
If investing in gold immediately leads to an image of Scrooge McDuck olympic diving into a pile of coins, that’s only half right. While there are opportunities to buy physical gold bars, coins or jewelry, gold is often traded as exchange-traded funds (ETF).
James Taska, a fee-based financial advisor, said, “There is a great debate as to whether paper gold is as useful as the physical. From a financial advisor’s viewpoint, it is much easier to rebalance a client’s allocation of gold if it is owned as an exchange-traded fund (ETF), and the spread when attempting to buy/sell gold can be quite variable and wide.”
Some of the most common ways to invest in gold include:
- Gold bars: Often referred to as bullion, this is a popular gold investing method. Offered on a per gram or ounce basis, other qualities including purity, weight, and manufacturer are typically stamped on the face of the bar. Similarly, you may encounter gold rounds.
- Gold coins: These are collectible coins, such as the American Gold Eagle coin. These often are sold at a higher price than bars of the same weight because they are viewed as collectibles with limited availability in the marketplace.
- Gold jewelry: Jewelry typically comes with aesthetic, external and subjective value, so the price may be significantly higher than the standard weight value.
- Gold futures contracts: A futures contract states that the investor will buy a specified amount of gold for a defined price at a future date. Futures allow investors to speculate on the price of gold in the future without needing to handle the actual physical product.
- Gold funds: These are mutual funds or ETFs that own gold assets. Like other ETFs in a stock portfolio, you can purchase shares in gold funds or any other mutual fund investment, and their value fluctuates based on the changes in the underlying portfolio of assets.
Is it a good time to invest in gold?
Ultimately, there is a relative subjectivity in determining if now is a better time to invest in gold compared to other periods. However, using gold as a way to diversify your existing portfolio can mitigate the impact of market volatility.
In the current economy, gold continues to offer stability in a highly volatile period for the stock market. Prices have risen to all-time highs, with the price rising over 25% since the start of 2025, fueled by ongoing inflation and economic uncertainty. Many experts agree this is a good time to diversify your portfolio with gold.
Current precious metals prices as of 8:55 a.m. ET today
Silver, platinum, and palladium are popular precious metals that investors can hold in portfolios in addition to gold. Gold is typically less volatile than silver, which can have a large price range even within a 24-hour period. Additionally, because silver is a more common resource used across different industries, it is more sensitive to external economic changes.
Platinum and palladium are in the same boat as silver. Investors can use these rare metals as a way to diversify a portfolio, but be wary that there is typically much more fluctuation than with gold.
The takeaway
The U.S. economy has been in flux for several years now, and the current period of extended inflation has had a major impact. Gold can serve as an inflationary hedge in an investor’s portfolio. Additionally, because of the variance of acquisition methods, gold can be a relatively easy asset to accumulate based on an investor’s comfort level and interest. Whether you purchase gold as an IRA or as a more active investment account, investing in gold may help achieve both short- and long-term investment objectives.
Frequently asked questions
What is the best way to own gold?
Many investors are buying gold via ETFs, which allows for a managed portfolio of easily traded assets.
Is gold a good investment?
Gold is often a good investment for investors looking to diversify their portfolio and get a hedge against inflation. There are many ways to buy gold, making it easy to access the investment.
Should I buy gold coins or gold bars?
Gold coins are considered collectibles and may have a higher value for the weight of gold compared to a bar. Collectible and historical significance can make coins a more attractive asset to some investors. Additionally, U.S. minted coins might help protect investors from the risk of getting fake bars.
