Is Gold Worth Buying In 2025? There's One Big Caveat

The price of gold continues to head toward record heights, but you may not want to buy this shiny element without a plan. That's because with gold prices reaching all-time highs "we are in uncharted territory," Brett Elliott, director of content at the American Precious Metals Exchange (APMEX), told CBS News, adding: "No one knows where the top is or when a reversal might come."

Gold is a rare commodity used for jewelry and technology. It is also a hedge against inflation and financial turmoil, which is why some banks and investors buy gold. When demand for gold grows during uncertain times, so does its price, just as it did during the onset of the Great Recession in 2008 and during the Covid-19 pandemic in 2020. This is why some analysts expect the price of gold to reach an unprecedented milestone as investors try to figure out how the Trump administration's actions will impact global trade, the U.S. dollar, and the fate of U.S. Federal Reserve.

Indeed, gold prices ramped up soon after President Donald Trump took office and started announcing his intent to levy tariffs on foreign goods. While tariffs did contribute to a stunning $258 billion surplus for the federal government's budget, it also helped set the stage for retaliatory tariffs from Europe, China, and other parts of the world, which may adversely impact the domestic economy. And since the cost of tariffs are mainly passed on to consumers, they've helped inflate the price of some tech products, food, and other essential household items.

It was in the fourth month of 2025, and Trump's administration, when gold prices hit record rates. On the afternoon of April 21, the price of gold reached $3,430.19 per ounce, an increase of well over $700 an ounce since the start of the year, per Reuters. The price later headed to peaks and valleys, falling to $3,187 an ounce on the Commodities Exchange (COMEX) on May 16, according to Google Finance data. By July 21, gold prices shot upward again from $3,357 an ounce at midnight to a high of just over $3,416 an ounce at 10:41 a.m. EST on the COMEX. As of 8:00 p.m. EST the price of gold was about $3,409, according to Google Finance.

This was on the same day attacks from the Trump administration on the Federal Reserve, and its chairman, Jerome Powell, intensified over the autonomous central bank's present reluctance to lower interest rates — an action that could lower the cost of borrowing but also skyrocket inflation. Treasury Secretary Scott Bessent, a Trump appointee, told CNBC that the "entire Federal Reserve" should undergo an examination to see if it is truly "successful" in its mission. Also, Congresswoman Anna Paulina Luna, a Trump ally, referred Powell to the Department of Justice for criminal charges for alleged perjury regarding the cost of the renovation of the Federal Reserve's Eccles Building, Fox News reported.

Other factors that impact the price of gold include how much gold central banks acquire, what sort of economic outlook inflation data reveals, global events, and the strength of the U.S. dollar. Still considered a global reserve currency, the price of gold could head downward if the U.S. dollar increases in value. Such was the case on July 17 when Trump indicated he would not fire Powell, which caused the price of gold to drop and the U.S. dollar index to rise, Reuters reported.

Financial experts recommended to CBS News that potential buyers take a long-term approach with gold rather than going for short-term profit. Investors should also invest in other assets besides gold, they added. People can also opt to buy stocks in gold mining companies or funds that acquire gold assets. But for those who insist in holding physical gold, they should not buy from just anyone. "The most important decision you'll make is where to buy from. Chose a reputable dealer, preferably one that has been in business for some time with good reviews and will also buy back from you when you're ready to sell," Elliott of AMPEX told CBS News.

Sourcing from a reputable dealer could even include buying gold bars from Costco. Due to high demand, however, Costco has placed limits on how much gold a member can buy. If you're planning to stock up all at once, it might be difficult — you can only purchase two 1-ounce bars per transaction every 24 hours.