Gold shattered historic records in 2024, hitting $2,790 per ounce in October, its upward price trajectory stemming from heavy central bank buying, ongoing inflation concerns and expected Federal Reserve rate cuts. As a result, the investors who bought in early this year have already seen impressive returns, defying gold’s reputation as only a long-term investment.

While the price of gold has dipped over the last couple of weeks, this could still be a good time to invest. Luciano Duque, chief investment officer of C3 Bullion, points to China’s shift toward physical gold ownership and new banking regulations that favor physical gold over paper assets as key drivers for continued growth.

But what are the best gold investments to make before 2025? We asked industry professionals this exact question. Here’s what they had to say about each gold option, how they work and who they’re best for.

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These are the best gold investments to make before 2025, experts say

Below are four promising gold investments to consider before the new year. Each offers different benefits and levels of risk. Your best choice will depend on your investment timeline, risk tolerance and whether you prefer direct ownership or market exposure.

Physical gold

Physical gold in the form of coins and bars stands out as one of the safest and most reliable investment options. A key reason to invest in physical gold is there’s no counterparty risk. 

“[It’s great if you’re] looking to preserve wealth, diversify [your] portfolio and maintain direct control of [your] assets,” says Alex Ebkarian, COO and co-founder of Allegiance Gold.

For beginners, he recommends the following:

• Start with one-ounce gold bars from well-known brands.
• Understand key terms such as “spot price” and “premiums” before buying.
• Know the difference between investment-grade gold and gold that isn’t investment-grade.
• Work with reputable dealers who offer education, secure storage options and transparent pricing.
• Remember that physical gold requires a longer-term outlook and comes with storage fees and upfront premium costs.

Brandon Aversano, founder of The Alloy Market, recommends investing in smaller gold bars. 

“They’re cheaper and easier to manage [than] larger bars,” Aversano says. This is ideal if you need to make quick portfolio adjustments.

Add the right gold investment to your portfolio today.

Gold ETFs

Gold exchange-traded funds (ETFs) offer a convenient way to add gold to your portfolio without the hassle of storing physical metal. 

“They’re easy to [buy] via brokerages and fairly liquid in case you need cash quickly,” says Ebkarian.

But before investing in gold ETFs, consider their ongoing costs. Most funds charge annual management fees. For example, popular ETFs may charge around 0.4% per year. Also, remember that your investment depends on stock exchange operations and electronic trading systems (unlike physical gold which you can hold directly).

Aversano points out that ETFs can contribute to a balanced gold investing strategy. 

“Many miss out on [returns from] gold-related assets [such as] ETFs [because they] focus [too much] on physical gold,” he says. 

Diversifying your investment type can expose you to other opportunities while minimizing risks.

Gold mining stocks

“If you want to leverage the potential move in gold and have an appetite for risk, then investing in a mining company is a good option,” says Ebkarian. As gold prices rise, mining company profits often increase even faster. You could gain higher returns than gold itself.

However, successful investing in gold mining stocks requires careful research and due diligence. You must evaluate each company’s management track record, production costs and growth prospects. Ebkarian warns that mining companies may operate in foreign countries, exposing them to political risks. They also face challenges with business partnerships and daily operations.

As a result, this investment option tends to suit experienced investors who understand the gold market and stock analysis. Unlike physical gold or ETFs, mining stocks can be affected by factors beyond gold prices.

Gold futures and options

Gold futures and options let you trade gold without owning the metal. But you’re essentially betting on the precious metal’s future price. 

“This is the most risky of the ways to invest and requires specialized knowledge,” cautions Ebkarian.

These complex financial instruments work best for sophisticated investors who understand gold markets well. You must be familiar with derivatives and stay on top of changing margin requirements. Market conditions can shift quickly, leading to significant gains or losses in short periods.

The bottom line

Smart gold investing before 2025 may require a mix of strategies. “Looking into the future, I expect to see more interaction between physical gold and derivatives,” says Aversano. Physical gold offers reliable protection and derivatives provide flexibility for market changes.

Before investing, consult a financial advisor to determine which gold investments fit your goals and risk tolerance. They can help you create a balanced strategy that protects your wealth while maintaining proper portfolio diversification.