As of 9:15 a.m. Eastern Time today, the price of gold was at $4,164 per ounce. This reflects a decrease of $4 from the previous day, and it’s down by about $194 from the same time last year.
| Gold price per ounce | % Change | |
|---|---|---|
| Price of gold prior business day | $4,168 | -0.10% |
| Price of gold 1 month ago | $4,378 | -4.89% |
| Price of gold 1 year ago | $4,358 | -4.45% |
For those considering an investment that isn’t directly affected by inflation changes, gold might be worth exploring. Generally speaking, gold is expected to appreciate in value over time. A popular way to invest in gold could be through a gold IRA, which provides some stability amid market fluctuations. This option might also appeal to individuals who want to invest in gold without the hassle of storing physical bullion.
Historical gold price chart
Investing in gold isn’t always a surefire success. Typically, in strong economic times, stocks can yield better short- and long-term returns. For instance, from 1971 to 2024, the stock market averaged annual returns of 10.7%, while gold’s average annual return stood at 7.9% during that same time frame.
Still, during periods of economic instability, gold provides a safer investment choice. Many people might think of it more as a means of preserving wealth, rather than viewing it purely as an investment like stocks or bonds.
What does “spot gold” mean?
The term spot gold refers to the price at which gold can be bought or sold right away in an over-the-counter transaction. This price is quite useful for investors to gauge current demand and market trends regarding gold. Essentially, a higher spot price indicates more demand in the marketplace. Unlike futures contracts which deal with potential future prices, the spot price is for immediate transactions.
When future prices exceed spot prices, it’s termed contango, a situation often encountered with commodities that have significant storage costs. On the flip side, when spot prices are higher than future prices, that’s referred to as backwardation.
There are various factors influencing the spot price, which is why it can change frequently. Therefore, anyone looking to invest in gold should be prepared for some price volatility.
What is price spread in gold trading?
A price spread indicates the difference between what someone is willing to pay to buy something and what they can sell it for.
In gold investing, we usually talk about two main prices: the ask price (the cost to buy gold) and the bid price (the price at which it can be sold). Typically, the bid price will be lower than the ask price.
The smaller the spread, the more active and liquid the market. A tighter spread suggests growing demand for gold.
How to invest in gold
If picturing an investment in gold brings to mind Scrooge McDuck diving into a pile of coins, well, that’s only part of the story. Sure, you can buy physical gold bars, coins, or jewelry, but it’s increasingly traded as exchange-traded funds (ETFs).
James Taska, a fee-based financial advisor, mentions that the debate over whether “paper gold” holds the same value as physical gold rages on. From an advisory perspective, reallocating gold within a client’s portfolio is often easier when it’s held as an ETF, given that price spreads can vary significantly when buying or selling physical gold.
Some popular methods of investing in gold include:
- Gold bars: Often known as bullion, this is a common avenue for investing in gold. It’s usually sold based on weight, with details about purity, weight, and the manufacturer marked on the bars. You might also find gold rounds.
- Gold coins: Considered collectible items, such as the American Gold Eagle coin, these often come at a premium compared to gold bars of the same weight, primarily due to their collectible nature.
- Gold jewelry: Jewelry tends to hold aesthetic value, which can drive prices significantly above standard gold weight value.
- Gold futures contracts: With these contracts, the investor agrees to purchase a certain amount of gold at a preset price at a future date, enabling speculation on gold price trends without managing the physical asset.
- Gold funds: These mutual funds or ETFs invest in gold assets. Like other ETFs, shares can be bought and sold, and their values fluctuate based on the performance of the underlying assets.
Is it a good time to invest in gold?
Determining whether now is the right time to invest in gold can be quite subjective. However, adding gold to your portfolio can help cushion against market volatility.
Currently, gold appears to provide stability, especially as the stock market experiences high volatility. Its price has risen significantly, over 25% since the beginning of 2025, driven by ongoing inflation and economic uncertainties. Many specialists argue that diversifying with gold can be prudent in this environment.
Current precious metals prices as of 9:15 a.m. ET today
| Precious Metal | Price per ounce |
|---|---|
| Gold | $4,164 |
| Silver | $58 |
| Platinum | $1,643 |
| Palladium | $1,120 |
Besides gold, silver, platinum, and palladium are also valued by investors. While gold typically has less volatility than silver, which can experience larger price swings in short spans, it’s worth noting that factors influencing silver can relate to its broader industrial applications.
Platinum and palladium are similar in that they can also serve as diversification tools, though they generally are more subject to price changes than gold.
The takeaway
The U.S. economy has experienced significant shifts over recent years, with the current prolonged inflation affecting many aspects. Gold can act as a hedge against inflation in a portfolio. Owing to various acquisition methods, gold is relatively easy for investors to accumulate according to their level of comfort and interest. Whether through an IRA or active investment accounts, investing in gold could aid in achieving both short- and long-term financial goals.
Frequently asked questions
What is the best way to own gold?
Many investors are turning to ETFs for gold purchasing, enabling a managed portfolio of assets that are easy to trade.
Is gold a good investment?
Gold is generally considered a solid investment option for those looking to diversify their portfolios and hedge against inflation. Its accessibility comes in various forms, making it easy to invest.
Should I buy gold coins or gold bars?
Gold coins, often seen as collectibles, might have a higher value than gold bars of equivalent weight. Their collectible nature and historical significance can make them more appealing, while U.S. minted coins can guard against counterfeit bars.
