Gold Price Breaks Milestone High, Is it Still Time to Enter?

At this moment, with the price of gold soaring past $3,200, gold once again takes the spotlight in the market. Investors are eager to try their luck but are also worried that they may be too late. Is now the right time to jump into gold, or should one keep a distance and wait for a pullback?

As of April 12, 2025, the price of gold futures reached $3,244.60 per ounce, marking an over 20% increase since the beginning of the year and hitting multiple historical highs within 2025.

According to CNBC, some analysts believe that the price of gold may be nearing its peak. Sameer Samana, Global Stocks and Real Assets Director at Wells Fargo Investment Research Institute, noted that the market may currently be at its most optimistic towards gold, and investors who chase high prices now may regret it later.

He pointed out, “Entering the gold market at this point may be a bit late, which does not necessarily mean that the gold price momentum has stopped, but investors are no longer early entrants.”

However, other analysts argue that there is still room for the price of gold to rise. Jordan Roy-Byrne, founder of The Daily Gold, mentioned, “Despite gold prices hitting record highs, they may accelerate further in the coming years.”

The primary reason for the surge in gold prices is the continuous large-scale purchases by central banks worldwide. James Cordier, CEO of Alternative Options, stated to CBS News that central bank gold buying is the biggest driver behind the current surge in gold prices, predicting a potential additional 10% increase by the end of the year, bringing it to around $3,500 per ounce.

Lee Baker, a CFP in Atlanta, noted that due to tariff concerns, many clients have been inquiring about investing in gold. “During times of turmoil, people tend to seek refuge, so we see some turning to gold.”

Experts typically recommend gaining exposure to gold investments through Exchange-Traded Funds (ETFs) that track the physical gold prices instead of directly purchasing gold bars or coins. Financial advisors often suggest limiting gold investments to a low single-digit percentage of the overall investment portfolio, approximately around 3%.

Purchasing physical gold, such as gold bars and coins, is seen as a form of financial insurance rather than a part of the investment portfolio. Consumers have shown a keen interest in this. Last year, Costco began selling 1-ounce gold bars, leading to a significant increase in sales, with analysts estimating the retailer’s monthly gold sales alone to be around $200 million.

Buying gold jewelry is another option. The value of high-quality gold jewelry is related to its precious metal content. Jewelry with higher karats (18K and above) contains more precious metal and tends to hold value better, though it may be prone to wear and tear with regular wear.

Furthermore, the brand and craftsmanship can determine the appreciation potential of the jewelry, especially pieces from top brands like Cartier, Van Cleef & Arpels, and Tiffany & Co.

Additionally, purchasing physical gold requires considering additional responsibilities and costs such as storage, insurance, and safekeeping.

(This article is for general informational purposes only, with no intention of recommendation. For specific investment matters, please consult your financial advisor. Epoch Times assumes no investment responsibility.)