How to Invest in Gold in 2025: Best Ways to Buy Gold Now

What Drives the Price of Gold?

1. Supply and Demand

Like any commodity, gold’s price is dictated by supply and demand. New mining discoveries can increase supply and push prices down, while rising demand—from central banks or investors during crises—can drive prices up.

2. Inflation and Interest Rates

Gold is perceived by the global investment community as the best bet against inflation and is the favored “inflationary hedge”. When inflation runs rampant investors jump onto the gold train to protect their purchasing power. Conversely, when interest rates rise or when there is more geopolitical and economic stability, then gold becomes less attractive compared to yield-bearing assets like bonds.

3. Geopolitical and Economic Crises

“Gold is the ultimate safe-haven asset,” says Jacob Bakshi, investment strategist at CleaRank. “During wars, financial meltdowns, or political instability, investors turn to gold because it holds value globally, unlike fiat currencies tied to a single country’s stability.”

4. The Strength of the US Dollar

A strong U.S. dollar will make gold more expensive since gold is priced in dollars and this will more often than not reduce demand. A weaker dollar, on the other hand, tends to push gold prices higher.

How to Invest in Gold

1. Gold ETFs

The quickest and easiest way to invest in gold is through ETFs like SPDR Gold Shares (GLD) or iShares Gold Trust (IAU), which track the metal’s price. You trade gold here in the same way as you would a regular stock which eliminates any storage or insurance concerns. This is our recommended place to start if you’re new to gold investing or trading.

2. Physical Gold (Bullion & Coins)

Buying physical gold—bars or coins—is an option, but it comes with extra costs like storage, insurance, and sometimes taxes. Michelle Sofia, portfolio manager at CleaRank, notes: “Physical gold is a lot less liquid and has a much higher premium than the spot price. This makes the hassle free ETFs a more logical choice for most investors.” 

If you’re not a die hard doomsday prepper, holding physical gold bars is not worth the risk.

3. Gold Futures

Gold futures contracts are designed mainly for speculative trading on short-term gold prices. They’re both highly liquid and trade nearly round the clock. However,  we suggest you only consider this option if you have significant prior trading experience.

4. Gold Mining Stocks

You can invest in gold mining stocks with companies like Newmont Corporation (NEM) or Barrick Gold (GOLD) which instantly exposes you to gold price volatility as you’re effectively purchasing equity in companies engaged in gold exploration, mining, and production. The upside here is that you’re leveraged as miners often amplify gains during gold rallies and you might get dividends if you’re with an established firm. However, there’s major downsides as well such as operational risks due to labor disputes, regulatory hurdles, and environmental liabilities.  Also your stock performance may diverge from gold prices due to company-specific factors like management decisions or production delays. This option is not for the faint hearted investors and does stray from traditional gold holdings.

5. Gold Mining ETFs

ETFs like VanEck Gold Miners ETF (GDX) and VanEck Junior Gold Miners ETF (GDXJ) provide diversified exposure to gold miners sector-wide which reduces single-stock risk like in the example above. However the downsides here are underperformance vs. physical gold during sector downturns (e.g., GDX returned 65% over five years vs. 90% for gold). Also you’re exposed to non-gold factors like energy prices and currency fluctuations.

Our Pro Tip: If you’re looking to invest in gold for the long-term, which means at least 5 years, then gold ETFs such as iShares Gold Trust (IAU) or SPDR Gold MiniShares (GLDM) would be a smart choice. If you’re looking to jump onto the short term gold train and catch this unprecedented bullish run, then allocate around 3% of your portfolio in order to keep risks at a minimum and consider gold futures or mining ETFs. Physical holdings of gold should only be considered if you’re preparing for the collapse of the financial system.

“Gold isn’t about chasing gains, it’s about reducing your risk and protecting your purchasing power. Evaluate gold on a yearly horizon and not on headlines or speculative hype. Buying gold ETFs and holding over the next 6-8 month period is according to most forecasts the best technical approach.”

Jacob Bakshi, Investment strategist at CleaRank.

List of Countries that Hold the Most Gold (Q4 2024)

Note: These figures are based on official reserves reported by central banks and institutions such as the IMF and World Gold Council, accurate as of Q4 2024.

Popular Gold ETFs (U.S.-Listed)

5-Year Return Comparison (April 2020–April 2025)

The CleaRank Strategy: Gold as Insurance, Not a Gamble

Michelle Sofia breaks it down: “Allocate 5–10% to gold ETFs. Rebalance annually. Forget timing the market—this is about sleeping well when others panic.”

For traders? Use futures. One micro gold contract (10 oz) controls $25,000 worth of gold with $1,500 margin. But tread carefully: leverage magnifies pain as fast as gains.

Your Financial Armor

Gold won’t make you rich. But in a world where banks can fail (SVB), currencies can inflate (Argentina), and stocks can crash (2008, 2020, 2022…), it’s the closest thing to financial armor.

As Jacob Bakshi puts it: “Gold is the only asset that’s nobody’s liability. In a debt-soaked global economy, that’s priceless.”

FAQs: Gold Investing

Disclosure:
This analysis is provided for informational purposes only. All prices, data, and forecasts reflect market conditions at the time of writing and the latest fact-check (as of the date specified above). Investors should consult with a qualified financial advisor before making investment decisions.