Gold prices could hit $5K if this happens, Goldman Sachs predicts. We asked 7 pros: Should you invest in gold now?

Click here to view the published press.

With more rate cuts looming from the Fed, some experts see bullion as a viable safe haven. Others warn against it

Gold futures continue to reach record highs, exceeding over $4,000 an ounce as of Oct. 7. And they could go higher, at least according to Goldman Sachs. In a recent analysis, the bank noted the precious metal could hit $5,000 an ounce if money privately invested in the U.S. Treasury market shifted just 1% to gold.

Two more potential rate cuts this year from the Federal Reserve have triggered a high demand for gold in recent weeks. Many pros see the metal’s growth as a safe haven against market downturns, especially during times of economic uncertainty and geopolitical turmoil. Others warn against it, noting that gold doesn’t generate income for investors and is often taxed at a higher rate. We asked seven financial experts whether they think investing in the precious metal is worth it. (Use this free tool from our partner SmartAsset that can match you to a fiduciary adviser, as well as resources like NAPFA and the CFP Board.)

“Physical gold, secured in a vault, provides a form of financial insurance that is increasingly valuable and sought after in today’s unpredictable environment,” says Jonathan Rose, CEO of Genesis Gold Group.

“The substantial price appreciation we’re witnessing now reflects fundamental economic realities rather than speculative excess. When I analyze the driving factors — persistent inflation concerns, significant geopolitical tensions, and unprecedented sovereign debt levels — gold’s strong performance appears both logical and sustainable.

I’ve worked with numerous investors who find tremendous peace of mind knowing that a portion of their wealth exists outside the conventional financial system. Physical gold, secured in a vault, provides a form of financial insurance that is increasingly valuable and sought after in today’s unpredictable environment. I encourage investors to view gold as portfolio insurance rather than a regular income-producing asset. For those requiring current income, balancing gold holdings with cash-flowing investments remains essential.”

“Buying gold is merely betting that the price will go up,” says Alex Michalka, vice president of investments at Wealthfront.

“At Wealthfront, we don’t include gold in our recommended portfolios for a few reasons. First, unlike stocks or bonds, gold doesn’t have any cash flows associated with it, and thus isn’t an investment in the same way. Buying gold is merely betting that the price will go up. It’s also taxed at a rate that’s generally higher than other investments. Finally, although it is sometimes considered a safe haven asset, it can be significantly more volatile than holding, for example, high-quality bonds.

That said, many investors see it as a hedge against inflation or macroeconomic uncertainty and consider it a component of their ideal diversified portfolio. That’s why we offer gold ETFs through portfolio customization. For clients who choose to invest in gold, we recommend treating it as just one part of a well-diversified strategy — and as always, avoiding putting all your eggs in one basket.”

“For many investors, investing via an ETF is more efficient, less expensive and offers more liquidity,” says Robert Minter, director of ETF investment strategy at Aberdeen Investments.

“Investing in gold is as easy as investing in a stock when you invest via ETFs, however investing via physically buying gold from a Costco — or other retailer — comes with some complications. Trading gold bars via the physical gold dealers in your local town can greatly exceed the trading costs of a gold ETF and detract meaningfully from any price performance. For many investors, investing via an ETF is more efficient, less expensive and offers more liquidity. Gold ETFs typically hold the gold at a custodial bank with secure vaults, which are audited on a regular basis. Gold is of course subject to both price increases and decreases potentially resulting in both gains and losses.

Central banks are buying gold to diversify away from U.S. dollars and treasuries at the margin. We view this increased buying as a secular trend that isn’t likely to end soon. Investors tend to buy gold when real interest rates are falling. The majority of the price appreciation of gold over the last four years has been as a result of central bank demand rising rather than investor demand.”

“We think portfolios with balanced allocations including a modest exposure to commodities are well positioned through the rest of 2025,” says Justin Cardwell, director of research at Alternative Options.

“For those with a multi-year outlook, holding gold can still play a meaningful role in a portfolio. Looking ahead, we think portfolios with balanced allocations including a modest exposure to commodities are well positioned through the rest of 2025. While tariffs and slowing economic data have raised concerns about inflation and growth, a pro-business policy environment and a dovish Federal Reserve could keep both stocks and commodities supported. Gold fits neatly into that mix as an anchor asset when volatility rises.

One of the bigger structural drivers for gold ownership is the persistent pressure on the U.S. dollar. With the national debt climbing by trillions and everyday prices of beef, coffee and metals doubling in the past one to two years, inflation risks aren’t theoretical. That’s why more advisors are adopting a 60/30/10 allocation model, where 10% is carved out for commodities like gold.”

“It can play a role if you think of it as insurance, not an engine of growth,” says Eric Croak, CFP and accredited wealth management adviser at Croak Capital.

“Gold does not generate cash flow. It does not have a yield. It does not pay interest. It does not pay a dividend. Sure, the price might spike during market panics. But that is sentiment-driven, and does not reflect a business creating value. Bonds have a job to do. Stocks have a job to do. What does gold have to do? It just sits. If you’re trying to build a portfolio over decades to provide compounding growth to reach a financial finish line, a static asset with zero income generation will not take you there.

That being said, I do not believe gold is worthless either. It can play a role if you think of it as insurance, not an engine of growth. If you have a healthy, fully diversified portfolio, 3% to 5% max seems reasonable for the person who is really concerned about inflation, currency debasement and/or geopolitical risks. That’s your ticket. But go overboard by 20% or more, and then claim gold is somehow better than equities, you’ve got to be kidding me. Gold is an emotional relief valve, not a wealth accumulation vehicle.”

“We suggest that most investors put none of their portfolio into gold in bullion form,” says Thomas Winmill, portfolio manager at Midas Funds.

“At Midas we suggest that most investors put none of their portfolio into gold in bullion form. Gold bullion has a negative return on equity due to storage, insurance and other holding costs. Investing in certain gold mining companies, in contrast, not only offers an inflation hedging ability through company ownership of gold deposits, but also excellent potential for current returns. A good vehicle through which to own gold mining companies would be a mutual fund.

But gold investing, like commodity investing generally, should be considered speculative since commodity prices are dependent on macroeconomic political, industrial, and financial factors that are unpredictable, and in some cases, unknowable.

The amount of the allocation depends on three main factors: the investors age, risk tolerance and overall asset holdings. The younger the investor, the higher the allocation to gold to allow the long term capital appreciation potential of gold to be achieved; older investors requiring asset stability and current income should have a smaller allocation.”

“Gold will always have value — it will never go to zero,” says Brett Elliott, director of marketing at American Precious Metals Exchange.

“Whether gold is worth it or not depends on your goals, but if we look at recent returns alone, that should tell us something about it. Year to date we’re currently seeing a 38% return on investment, making it one of the best performing asset classes in the world.

Gold, like any investment, has pros and cons. There are many different forms that a gold investment can take from digital gold, to physical bars and coins to ETFs and complex derivatives. Pick one to focus on and learn the ins and outs. Physical bullion is excellent for long term investing, but it takes more effort to sell than digital gold. An ETF or digital gold might be better for short term trading since it often has a lower spread and buying and selling can be done online. And just like any other investment, you can lose money by buying at the height of a market and selling when the price drops.

Gold is a very safe investment. Stocks and bonds can both go to zero. If a company goes out of business or defaults on its debt, you can lose everything you’ve invested. But gold will always have value — it will never go to zero.”