Gold prices climbed to record levels in 2025, trading above $3,200 as investors sought protection amid heightened economic uncertainty. The surge has broken more than a dozen historical highs, prompting debate among financial professionals about whether now is a prudent time to buy.
Opinions among experts are mixed. Sameer Samana of Wells Fargo Investment Institute warns that gold appears “overbought” and believes many investors may be “coming late to the party,” implying that prices could have already peaked. In contrast, Jordan Roy-Byrne of The Daily Gold argues that the rally may have further to run, suggesting prices “could accelerate” in the years ahead.
For most individual investors, advisors generally recommend gaining exposure to gold through exchange-traded funds (ETFs) such as SPDR Gold Shares or iShares Gold Trust rather than holding large amounts of physical metal. These funds offer liquidity, lower transaction costs, and easier portfolio management. Typical guidance is to cap a gold allocation at a modest percentage of overall assets—many advisors cite around 3%—to retain diversification without taking on concentrated risk.
Gold is often viewed as an inflation hedge, and it has historically performed well when inflation pressures rise. However, experts note that in past recessions gold has not always outperformed bonds, so investors should consider their broader income and risk needs when deciding how much exposure to hold. Allocation should be aligned with individual goals, time horizon, and tolerance for volatility.
Consumer demand for physical gold has risen sharply alongside the price rally. Retail outlets and wholesale sellers have reported substantially higher sales volumes: for example, large warehouse retailers have seen increased purchases of gold bars and coins. High-quality gold jewelry from established luxury brands remains popular both for personal wear and as a potential store of value, offering craftsmanship and resale appeal that some investors find attractive.
Members of CNBC’s Financial Advisor Council underscore the importance of diversification while acknowledging gold’s function as a hedge. Winnie Sun recommends that clients secure cash reserves and emergency savings before increasing exposure to gold, emphasizing liquidity and short-term stability. Lee Baker highlights a rise in client interest driven by what he describes as a “fear trade,” where investors add gold as protection during market turbulence.
Ultimately, whether to buy gold now depends on individual circumstances. Investors should weigh the potential for further price appreciation against the possibility that the market may be extended. Those considering allocation can evaluate ETFs for convenience and liquidity, or physical pieces for personal satisfaction and tangible ownership, but should keep allocations modest within a diversified portfolio. Consulting a financial professional can help align any decision with long-term financial objectives and risk tolerance.