Gold is often considered a safe home investment, as it usually serves as a hedge in times of political and financial uncertainty. Prices are now rising amid fears of a global trade war and the potential to drive the US economy into a recession.
However, some analysts believe gold prices may have peaked.
“We're probably close to gold's biggest optimism at this point,” said Samea Samana, head of global equity and real assets at Wells Fargo Investment Institute. Investors chasing the return may find themselves regretting it later.
“It's been so overbought,” Samana said. “Buy money now and you're coming a little late to the party. It doesn't mean that it's finished, but you're not early.”
So far, gold prices have hit record highs of over a dozen and are currently trading above $3,000.
Gold prices appear in escalation of customs
By comparison, the S&P 500 fell by about 11% in 2025, and has increased by about 1% over the past year.
President Donald Trump imposed sudden country-specific tariffs on Wednesday, but ultimately delayed them for 90 days. However, the trade war between the US and China (our third largest trading partner) escalated as countries engaged in strict tariff increases.
As of Friday morning, the US had placed a 145% tariff on imports from China, and thus fought back with a 125% collection on US goods.
Some analysts who think gold prices are getting closer to extremes believe there is room for operation.
“Gold prices are the highest ever, but the reality is that they can accelerate in the next few years,” said Jordan Roy-Byrne, founder of The Daily Gold, an online gold, silver and mining resource.
How to invest in gold
Akos Stiller/Bloomberg via Getty Images
Experts often recommend getting Exposure to gold investments through funds traded on exchanges that track the price of physical gold, rather than buying real gold coins or bars.
“Most in the case [investors]According to ETF.com, SPDR Gold Shares (GLD) and Ishares Gold Trust (IAU) are the two biggest gold ETFs, Samana said.
Financial advisors generally recommend limiting gold exposure to a lower digit percentage.
When investors worry about inflation and stagflation, Gold tends to do “good” — fear caused by the Trump administration's recent tariff policy. However, during a recession, it “rarely works out.” It's the bond “really shows their worth,” he said.
Buy physical money
Alternatively, purchasing physical gold or bullion, including bars and coins, is “a financial insurance job, as opposed to part of your portfolio,” explained Roy Byrne.
Consumers in particular seem to like that idea. When Costco starts selling The 1-ounce bar had a surge in revenue last year, with Wells Fargo analysts estimated that wholesalers generated up to $200 million a month through gold sales alone.
“In the recent turbulence of the stock market, Tim Schmidt, founder of Gold IRA Custodians, an online resource for the purchase of gold, says, “There is a renewed interest in concrete, physical assets that exist outside the traditional financial structure.”
However, buying physical gold during uncertain times may not make much sense for investors unless you are extremely concerned that there is a very unlikely chance that the financial system will burst.
Buy gold jewels
Great jewelry is another story. According to Schmidt, the baseline value of a gold gem is tied to its precious metal content. High carat pieces, or 18k or more, contain more valuable metals, which usually hold their value better, but may be less durable for everyday wear.
“High-quality jewelry can provide both personal enjoyment and potential financial benefits when carefully selected,” he said.
Craftsmanship and artistry play an important role in the parts that can be appreciated over time, especially for top brands such as Cartier, Van Cleef & Arpels, and Tiffany & Co.
Buy money now and you're coming a little late to the party. It doesn't mean that it's over, but you're not early.
Summerna
Head of Global Equity and Real Assets at Wells Fargo Investment Institute
A year ago, Tiffany CEO Anthony Ledl said high-quality gems could also be considered “proof of the recession.”
“People have invested in gems since ancient times,” Schmidt said. “There are times when you feel psychologically reassuring about investing in your hands, especially during periods when the market appears to be detached from economic realities.”
What financial advisors say about money
Gold prices expanded Wednesday following record highs in previous sessions as investors sought safe inventory metal comfort in anticipation of the potential impact of US mutual tariffs.
Akos Stiller | Bloomberg | Getty Images
“We have clients who currently hold gold positions. These are individuals who have substantial assets in a variety of industries and sectors, typically using gold as a means of diversifying and balancing their portfolio,” he said. Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California.
Sun, a member of CNBC's Financial Advisors Council, said, “In the face of growing uncertainty due to tariff-related market fluctuations, “we do not actively recommend that clients add to their gold positions.” “We recommend instead maintaining high cash reserves, fully funding emergency savings and relocating as needed based on evolving financial goals.”
Lee Baker, an Atlanta-based CFP, says more clients are worried that tariffs will hamper economic growth and have been asking about alternative investments in gold recently. “In many cases, there is a 'flight to safety' in times of confusion. So in these times, there is a movement towards gold as part of the fear trade. ”
“Incorporating gold and other products is generally a good idea,” according to Baker, founder, owner and president of Apex Financial Services and a member of CNBC's FA Council.
He recommends adding gold ETFs to his client portfolio, but “sometimes he used gold stocks in the form of investments in mutual funds of mining companies or gold-related companies.”
Regarding physical gold, he said, “If grabbing an ounce at Costco or anywhere makes you feel good, I'll do it.” But this creates additional liability and costs for storing, insurance and storing those holdings, he added.
