The price of gold continues to shatter records in 2024. Not only has the price broken numerous records so far this year, but the precious metal recently hit an all-time high of $2,730 per ounce, pushing past the previous price barriers once again. Three main factors are helping to drive this explosive growth: heavy buying from central banks, ongoing inflation concerns and expected interest rate cuts by the Federal Reserve.

As a result, many investors are wondering if gold’s high price means they should wait to buy. But financial experts say the current market presents unique opportunities. They point to strong signals that suggest gold prices could climb even higher.

We consulted three industry professionals about why now might be the right time to invest in gold — even with the recent price trajectory. Here’s what they had to say.

Find out how gold could benefit your investment portfolio today.

Why you should invest in gold before 2025

Below are three compelling reasons to consider investing in gold before 2025 rolls around:

The potential for continued price appreciation

Many analysts predict gold prices will reach $3,000 per ounce in 2025, representing a significant jump from current levels. 

“With favorable conditions continuing to prevail in markets today, we [may] see gold well over [that target soon],” says Brett Elliott, director of marketing at American Precious Metals Exchange (APMEX).

The U.S. national debt adds another factor that could drive prices higher. 

Michael Boggiano, managing partner at Wealthcare Financial, warns that rising debt levels could devalue the U.S. dollar, potentially triggering a financial crisis. This scenario could push gold prices even higher as investors seek safer alternatives.

Start adding gold to your investment mix now.

To hedge against economic uncertainty

Recent events prove gold’s value during market turmoil. 

“Take the COVID-19 pandemic for example,” notes Boggiano. “[It] caused the 2020 market crash. This [drove gold’s price] to an all-time high of almost $2,100 per ounce.”

The precious metal has also shown its strength against inflation. Elliott points out that while inflation has eaten away more than 20% of the dollar’s purchasing power since 2020, gold has risen from under $2,000 to over $2,700 per ounce in four years. 

This protective power becomes even more evident in countries facing severe economic challenges, where gold has helped preserve wealth during periods of extreme inflation.

For the diversification benefits

Elliott highlights that the traditional stocks and bonds balance doesn’t work like it used to. 

“[They’ve] become correlated in recent years,” he says, limiting their effectiveness for portfolio diversification. 

This shift has led investors to seek alternative assets that protect their wealth during market turbulence. Gold has proven particularly effective at this role by moving independently when other investments falter.

But how much should you invest? “[It’s] best to hold a small position in gold for the ‘what-if’ scenario,” advises Mark Charnet, founder and CEO of American Prosperity Group. He recommends making systematic investments you can maintain through good and bad market cycles.

Waiting until 2025 to buy gold could be costly

History gives us a clear warning about trying to time the gold market. Elliott recalls when gold cost less than $300 per ounce in 2000. 

“There were people in 2006 who looked at gold priced at $600 an ounce and said they’d rather wait for the market to cool … [and it never did],” Elliott says. 

Those who held off for lower prices missed out on significant gains.

That’s why instead of trying to time the perfect entry point, experts recommend a steady approach. Consider starting with smaller purchases and adding to your position regularly over time. This strategy, known as dollar-cost averaging, helps reduce the impact of price swings while building your gold holdings responsibly.

The bottom line

A balanced approach is key when adding gold to your portfolio before 2025. While some may want to dive in heavily given current market conditions, Charnet recommends limiting gold to no more than 10% of your investment portfolio — even in good times for the precious metal. This allocation is enough to benefit from its protective qualities while maintaining healthy diversification.

If you’re new to gold investing, start with “physical gold from a sovereign mint, and avoid collectibles for your first investments,” suggests Elliott. He emphasizes sticking to reputable companies only — and that’s where a financial advisor can provide guidance.

Consult with one to devise a strategy that lines up with your long-term goals and risk appetite. Remember that gold investing works best as a steady, long-term bet rather than a short-term or speculative venture.