Gold has been a standout investment in recent months, outperforming traditional assets such as stocks and bonds. The precious metal reached a historic peak of $2,758 per ounce in October 2024, marking an impressive 38% increase from just a year ago. Several factors drove this surge, including inflation, rising interest rates and global tensions that made investors seek safer options.

Now, things are starting to shift as we close out 2024. Inflation is cooling down. The Federal Reserve is talking about cutting rates. This leaves successful gold investors with a big question: “Is it time to sell and take profits? Or should I keep my gold investments?”

We spoke with three investment professionals to understand when selling gold makes sense — and when holding might be the best strategy. Below, we’ll explore both scenarios and share practical ways to adjust your investment mix for today’s changing economy.

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Should you sell your gold investment as the economy improves? 

“It really depends on [your] financial goals and risk tolerance,” says Ronen Cojocaru, personal investment consultant and CEO of 8081. While an improving economy might point to better returns in stocks or bonds, gold still protects investors against unexpected downturns.

Rick Miller, financial planner and investment advisor at Miller Investment Management, suggests following your original investment plan. 

“If [it’s] long-term hold, hang on. If [it’s] growth or speculation, sell to capture the great gains you may have,” he advises. This simple rule can guide your decision based on your initial goals rather than market timing.

Some investors might benefit from selling to pursue growth opportunities, while others may want to keep gold as a safety net.

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When it makes sense to sell your gold investment

“If gold prices have reached a high point, it could be a good time to sell and lock in profits,” suggests Cojocaru. You might find better returns in stocks, real estate or other assets that typically grow faster during economic upswings.

Timing your exit requires watching specific economic indicators. 

“Gold underperforms when the CPI falls, even during rising GDP numbers,” explains Jerry C. Wagner, president of Flexible Plan Investments. 

He advises watching for two main selling signals: deflationary periods and a strengthening dollar. Periods of positive real interest rates — when Treasury yields top inflation — can also challenge gold prices.

Consider selling your gold investment if you spot these opportunities and have already met your profit goals. Moving money into growth-focused investments could help your portfolio expand faster in favorable market conditions.

When it makes sense to hold your gold investment

While market conditions might tempt some to sell, gold’s unique benefits make a strong case for staying invested. “Gold can act as a safety net [when] the economy faces unexpected downturns, inflation rises or market volatility increases,” explains Cojocaru. This protection becomes especially important for investors near retirement who need stable, long-term value for their savings.

The numbers right now support a long-term holding strategy. 

“Few investors realize that since the beginning of this century, gold has outperformed the NASDAQ,” Wagner points out. 

He explains that simply holding gold passively for the long haul has been highly profitable. Also, gold often moves opposite to stocks — making it valuable for portfolio balance. 

“Since gold often zigs when the stock market zags, selling it can be hazardous to your long-term financial health,” he cautions.

Diversification strategies in a changing economy

Whether you decide to sell or hold your gold investments, spreading your money across different assets helps protect and grow your wealth.

Here are smart ways to do that, according to Cojocaru:

Mix in stocks across different sectors

Include technology, healthcare and consumer goods companies to capture growth when the economy strengthens. Companies often see higher profits during economic upswings.

Add bonds for stability

Combine short-term and long-term bonds to create steady income while managing interest rate risks. Bonds help cushion your portfolio while other investments fluctuate.

Look into gold ETFs

These funds let you keep exposure to gold while enjoying easier trading. They’re more liquid than physical gold and often have lower storage costs. 

The bottom line

“Now is a terrific time to take some profits [as] gold [is] at all-time highs,” suggests Miller. This would allow you to recover your initial investment while keeping some position in gold. Besides that, your next moves should depend on key economic signals such as interest rates, inflation and the dollar’s strength.

Stay informed but don’t make hasty decisions based on headlines or social media tips. Instead, work with a financial advisor to review your investment goals and create a balanced strategy. They can help you decide whether to sell, hold or adjust your gold holdings while keeping your long-term financial success in focus.