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CBS News
28-04-2025
- Business
- CBS News
Will gold hit $4,000 per ounce in 2025? Experts weigh in
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. The price of gold could be heading toward the $4,000 per ounce milestone. Getty Images It seems like the price of gold just keeps hitting record after record. In March, gold prices surpassed the $3,000-per-ounce mark for the first time ever. Now, they're sitting around $3,300 per ounce — and climbing. The reasons are many, but economic uncertainty, geopolitical instability, and unpredictable market performance are all part of it, driving consumers to safe-haven assets that protect their wealth. And gold? It's the No. 1 safe haven in many investors' eyes. The surge in the price has been supported by a number of factors, says Brett Elliott, director of content at precious metals marketplace APMEX, including "bank failures, rate cuts from the Federal Reserve, and now the current trade war and tariff announcements." And while there is likely a ceiling for gold prices at some point in the future, many experts are predicting further growth in the near term. But just how high could they climb? Could gold prices reach the $4,000 price point? We asked some experts for their predictions. Start protecting your portfolio against market uncertainty with gold now. Will gold hit $4,000 per ounce in 2025? Will the price of gold hit or potentially surpass $4,000 per ounce this year? Here's what to expect, according to the experts we spoke to: Gold prices will likely keep rising Experts don't really see gold prices dropping anytime soon, at least unless some sort of economic stability is achieved, giving consumers more confidence in investing their money elsewhere. "Investors are reacting to the flood of contradictory signals coming out of the White House on tariffs, debt, and global trade," says Ben Nadelstein, head of content at Monetary Metals. "That uncertainty is shaking confidence in stocks and bonds and sending capital into gold since it's an asset that doesn't rely on political stability." In short, he says, "there's a growing appetite for stable, yield-generating, non-sovereign assets." One major concern is proposed international tariffs, and though those have been paused temporarily, they'll likely remain a big influencer in gold prices until some more clarity on their impact emerges. "Tariff uncertainty will remain until the 90-day pause ends in July at the very least, and that uncertainty is helping fuel gold prices," Elliott says. "We're very close now to breaching $3,500 for the first time, and with two very recent moves of 3% in a single day, confidence is increasing that we will see gold break another record in the near future." Explore your top gold investing options here. Hitting the $4,000 mark may be hard It's certainly possible that gold prices hit $4,000 per ounce at some point, though it might take something big to make it happen — like the Federal Reserve dropping interest rates to zero, as it did during the Covid era. This might occur if inflation rises or a recession hits, and the Fed needs to stimulate consumer spending. "Gold prices can absolutely reach $4,000 per ounce if economic uncertainty and large market sell-offs continue," Nadelstein says. "Interest rates falling back towards zero could also propel gold prices past the $4,000 per ounce mark as investors move out of dollars and into something that can still deliver a real yield." Still, it'd be a big jump to make, Elliot says. "We would need to rally an additional 17% from today's already historic price," Elliott says. "That's no small feat, and at some point, the current rally will need to end. Gold never goes up in a straight line, so we need to expect some pullbacks along the way." And while some might point to the steep jump in gold prices seen in April 2025 as an indicator that the $4,000 mark is in sight, it's important to remember what drove that increase — namely, a big dip in the stock market. That dip pushed a large swath of people toward gold — consumers and market participants who aren't usually on the market for the precious metal under normal circumstances. "As gold prices soared to all-time record highs recently, there was buying from a plethora of different participants," says James Cordier, CEO and head trader at Alternative Options. "The glaring difference in this most recent rally in prices was the breadth of the market." The bottom line Whether or not gold prices reach $4,000 this year, it still might be the right time to buy in. For one, experts aren't predicting drops anytime soon, so it could be a smart way to invest your money and, more importantly protect yourself against potentially rising inflation. It can also be a diversifier, bringing some much-needed stability to your portfolio in an unpredictable time. Whatever you do, just go in with a long-term mindset, experts say, and gold could be the right move for your money. "Gold will never drop to zero dollars, but it might not give you the returns you were hoping for right away either," Elliott says. "Go in with a plan and a goal and be prepared to hold for a long time."
CBS News
27-03-2025
- Business
- CBS News
What to know before investing in gold in 2025, according to experts
Gold has had quite the run-up in recent years. In fact, if you had invested in gold at the start of 2023, your investment would have grown by about 68% by March 2025. The surge in gold prices comes down to many factors, but high inflation and geopolitical tensions are chief among them. These uncertain economic influencers push investors toward safer, less volatile assets — among which gold is typically king. But gold isn't the same as other assets you might invest in. And while it can certainly be a good addition to your portfolio , it's important to be educated about the process before jumping in. Learn how to add gold to your investment portfolio today . Are you thinking of buying gold for your portfolio in 2025? Here's what experts say to know before you do: Gold prices have been rising for some time now, and the precious metal has hit record highs several times. But that growth isn't over yet, at least according to most projections. "Gold is currently trading at an all-time high, and analysts are forecasting gold to go higher," says Brett Elliott, director of content at precious metals marketplace APMEX. "Some revised forecasts suggest gold could run up another 14% this year from current levels. This is unusual and incredible. Gold normally averages about 8% per year." So if you're looking to buy in, the sooner you can act, the better — especially if you want to take advantage of those forecasted increases . Just take note: While you may be able to turn a profit on a short-term gold investment , this is one asset that's best for long-term financial goals. "Are you thinking inflation is going to be a longer-term issue for major economies?" says Steven Conners, president of Conners Wealth Management. "Are you concerned about fiat currency, which is essentially paper money? What is your asset allocation versus other assets in your portfolio? Does it represent a reasonable percentage of your overall asset allocation?" Get started with gold investing now, before prices climb again . If you're looking to buy physical gold , do your research first. There are all kinds of ways to buy in — coins, bars, jewelry, etc. And not all of them will suit every goal. "We carry over 30,000 products at APMEX and some of them are meant to be investments, some are meant to be collected, and some are art," Elliott says. "You want to match the right product to your purpose." Elliott advises new investors to "Focus on products that are well known and highly liquid, like American Gold Eagles or gold bars from MKS PAMP — something that's easy to sell when you're ready and carries a reasonable premium with low counterfeit risk." Keep in mind that you can invest in gold in other ways, too,, including gold individual retirement accounts (IRAs) , gold stocks or gold exchange-traded funds (ETFs) , to name a few. And just as you should compare your gold options, you should also compare gold dealers . "The most important decision you'll make is where to buy from," Elliott says. "Choose a reputable dealer, preferably one that has been in business for some time with good reviews and will also buy back from you when you're ready to sell." Be sure to compare at least a few different dealers. These can be online marketplaces, in-person precious metal exchanges or even pawn shops. Whatever they are, just make sure you do your research before purchasing from them. "You don't need to buy from the first dealer, website, or ETF you come across since other vendors might offer the same product with lower fees or premiums," says Ben Nadelstein, head of content at Monetary Metals. "Gold is fungible, meaning that one ounce of pure gold is chemically identical to any other ounce. If your main goal is to gain exposure to the price of gold, buyers can focus on buying bullion products with the lowest premiums available." Gold is typically a good investment if you're looking for a way to safeguard your wealth, protect against inflation and diversify your portfolio . But you might also consider investing in other precious metals, too. "Keep in mind that gold is currently at all-time highs, meaning we are in uncharted territory," Elliott says. "No one knows where the top is or when a reversal might come. Some investors are shifting towards silver right now because of that. It's about 40% to 45% below its current all-time high, meaning there's a lot of room for it to rise before it hits a theoretical ceiling." If you're not sure what the best precious metal investment is for your portfolio — or how to go about it, get in touch with a financial advisor. They can help you make the right decisions for your goals.
CBS News
29-01-2025
- Business
- CBS News
Is gold a good substitute for cash in inflationary periods?
As we head further into a new year, gold is experiencing renewed interest and a strong price, with its performance being driven, in part, by investors wary of persistent inflation. In December, the U.S. Consumer Price Index (CPI) defied forecasts and rose to an annual inflation rate of 2.9%. Global conflicts and fears of a stagnating economy have also contributed to the recent uptick in the price of gold. However, many gold experts aren't surprised by gold's current performance. Historically, investors turn to gold in times of inflation and economic unease. For example, they may use gold as a way to preserve wealth or as a substitute for holding cash during inflationary periods. Can gold really act as a substitute for cash when inflation is high, though? Or is it more appropriate to think of gold as a complementary asset? Learn more about the benefits of gold investing now. Is gold a good substitute for cash in inflationary periods? People often turn to gold during inflation because they see it as a stable asset, especially when cash loses its purchasing power. "People often think of hard assets like gold or real estate as inflation protection because they see the price of acquiring those assets rising," says Brett Elliott, director of marketing at American Precious Metals Exchange (APMEX). "The truth is a little more complicated. It's not that the value of gold has increased; it's that the value of cash has decreased. It buys less of everything, but gold retains its value." Elliott uses the price of a suit to illustrate this principle. In the 1940s, you could buy a tailored suit for about $40, which was also the price of an ounce of gold. Today, $40 may not even buy you a nice shirt, Elliott says, let alone a suit. However, an ounce of gold — now worth $2,720 — could still purchase a suit. This shows how gold holds its value over time while cash loses its buying power because of inflation. Another reason gold holds strong against inflation is because, unlike cash, gold's value isn't tied to any specific country's economy or monetary policy. Plus, gold's scarcity adds to the attraction for investors. As Pawan Jain, interim chair of finance at Virginia Commonwealth University, points out, gold's stock-to-flow ratio of 60 is historically high, meaning it would take about 60 years of current mining production to replace the existing gold supply. "High stock-to-flow ratios often coincide with a 'scarcity premium,' meaning investors pay more for assets that are hard to increase in supply. Gold has a track record of performing especially well when the market uncertainty is high, partly attributed to its reliable scarcity," says Jain. Start adding gold to your investment portfolio today. Benefits of adding gold to your portfolio during inflation Gold doesn't replace the liquidity and convenience of cash, but adding the yellow metal to your portfolio can help offset the impact of inflation. By making this move, you may help stabilize and diversify your portfolio during difficult economic times. Elliott recommends investing a fixed amount at regular intervals to reduce the risks of market volatility. "Dollar-cost averaging has been shown to decrease risk and improve ROI for the average investor. Even among the best investors in the world, the success rate for attempting to time the market is dismal," Elliott says. Physical gold may help to stabilize your portfolio because of its relationship — or lack of one — with the stock market. "Gold often moves independently of equities and bonds, helping investors diversify risk," says Jain. "This low correlation can boost overall portfolio performance during economic stress or when inflation undermines stocks and bonds." Plus, geopolitical tension and economic downturns can disrupt stock and bond markets, but gold tends to retain its value as a safe-haven asset. The bottom line The spot price of gold has gone up nearly $150 per ounce since the start of the year. If you anticipate this upward trend will continue throughout 2025, you might consider purchasing the precious metal before it rises again, especially if inflation persists. While gold may not be a substitute for cash, its ability to act as a hedge against inflation and independence from stock and bond performance make it an option worth considering. Keep in mind, though, that while gold is often seen as a reliable store of value over the long haul, it can experience volatile fluctuations in the short term. Experts generally suggest limiting your allocation to gold and other precious metals to 5% to 10% to help maintain a balanced portfolio.
