There’s a familiar saying about the Golden Rules: those who have wealth set the rules.
Gold has maintained its status as a key asset for preserving wealth throughout the years, acting as a safeguard against inflation, economic struggles, and geopolitical unrest. If you’re someone who’s seasoned in investing or just starting out and thinking about broadening your investment options, it’s crucial to know how to purchase gold to make sound financial choices.
In times of high inflation and global unrest, the wise investor turns to gold. It’s become a safe haven whether it’s due to political issues, banking uncertainties, or skyrocketing interest rates. But the real question is: how do you actually acquire it? And, more importantly, how can you do it safely?
We consulted Louise Street, a senior market analyst from the World Gold Council, to gather insights on when and how to invest in gold. It’s a smart approach for 2025.
What’s the deal with cryptocurrencies?
Some investors view cryptocurrencies as “digital gold,” banking on their potential for high returns and decentralization. Still, unlike gold, cryptocurrencies can be volatile and subject to fraud and speculation. Recent headlines illuminate the risks, with former financial professionals finding themselves in hot water over crypto dealings. While blockchain may hold promise, gold stands out—boasting centuries of trust and a solid reputation during financial turmoil.
Why invest in gold now?
“Gold has always been viewed as an effective hedge against inflation, and the statistics agree,” Street mentions. “Since the US dropped the Gold Standard in 1971, gold has regularly outperformed the US consumer price index (CPI) and proven to maintain purchasing power over time.”
In 2022, for instance, gold surged almost 10% due to climbing inflation. This is typical during moderate inflation periods of about 2% to 5%, with yearly gold price increases averaging around 8%. As Street highlights, “that figure has noticeably increased during inflationary periods.”
Furthermore, reports suggest that gold has now crossed the $3,000 mark, indicating potential for further increases as more investors look for alternatives to stocks and real estate.
Looking at gold’s history
Gold’s performance isn’t merely a theory; history backs it up. “Gold prices generally rise amid financial and geopolitical uncertainty,” Street notes.
Take the year 2008, for example. “During the global financial crisis, gold prices hit $1,000 per ounce for the first time, solidifying its reputation as a reliable store of value in turbulent economic times,” she adds.
Fast forward to 2020, during the uncertainties of the Covid-19 pandemic, when gold reached $2,000. Now, as we move into 2025, factors like geopolitical tensions and broader economic instability have pushed gold past $3,000.
How to Buy Gold Safely: A Step-by-Step Guide
1. Know what you’re buying
There are several avenues for investing in gold:
- Physical gold: Coins and bars.
- ETFs and mutual funds: Paper assets that track gold’s performance.
- Mining stocks: Shares in gold-producing companies.
If long-term stability and ownership are your goals, physical gold is the top choice.
2. Pick a reputable dealer
Street advises using the Retail Gold Investment Principles created by the World Gold Council, which outline trustworthy practices in gold retail. This guidance includes tips on selecting reliable sellers, understanding pricing, and ensuring credibility.
If you’re seeking reputable companies, look into American Hartford Gold and Gold Co. They’re recognized for secure transactions and compliance with industry standards.
3. Verify reliability
The RGIP principles were crafted with input from various stakeholders across the industry to promote high standards of behavior. Look to see if your gold comes with:
- Certification or assay cards
- Tamper-proof packaging
- Recognizable features (e.g., LBMA approval)
Both Gold Co and American Hartford Gold emphasize detailed product information to ensure authenticity.
4. Understand the costs
Gold isn’t free, and costs can add up. You’ll likely encounter insurance premiums above market prices, shipping fees, and storage charges. Some dealers offer secure vaulting for your purchases, while others provide IRA-compatible accounts.
5. Store wisely
Your options for gold storage include:
- A professional safe
- Bank safe deposit boxes
- A home safe (preferably insured)
If you’re opting for physical delivery, ensure you have insurance or choose a dealer that provides it. American Hartford Gold, for example, offers storage through trusted institutions.
Conclusion
It’s best not to wait for a crisis to invest in gold. It’s not simply a backup plan; it’s a strategic move. “Gold’s resilience during inflation underscores its position as a valuable asset in today’s uncertain financial climate,” Street concludes.
