Does Gold Still Shine in 2025? Pros and Cons of Investing

In times of economic turbulence, few assets command the same timeless respect as gold. Whether you’re navigating inflation, market volatility, or geopolitical unrest, investing in gold 2025 continues to attract attention as a time-tested hedge. With gold investment trends showing renewed interest in 2025, many Canadians are asking: is buying gold a good investment right now?

The answer isn’t black and white it depends on your financial goals, risk tolerance, and timing. With inflationary pressures persisting, central banks tightening and loosening their grips in cycles, and global tensions creating ripples across markets, gold’s role as a “safe haven” is once again in the spotlight. And thanks to platforms offering real-time gold price investing, more people than ever can track and act on market shifts instantly.

Curious whether gold deserves a place in your portfolio this year? Let’s break it all down pros, cons, and the nuances you should know in 2025.

Why Gold Remains a Popular Investment Choice in 2025

Gold as a Safe Haven in Times of Uncertainty

In 2025, the world continues to face economic unpredictability from inflation spikes and currency devaluation to renewed geopolitical tension and uneven central bank policies. During such times, gold consistently proves itself as more than just a shiny metal. It’s a safety net. When markets dip and fiat currencies lose purchasing power, many investors turn to gold as an investment that preserves wealth.

But is it safe to invest in gold now? While no investment is entirely risk-free, gold’s track record during global downturns offers peace of mind. It doesn’t default, it doesn’t go bankrupt, and it’s not tied to any single government’s policy. That’s what makes it appealing in uncertain times. For Canadians watching economic instability both domestically and abroad, gold offers a unique form of protection: a physical, globally recognized store of value that can act as a shield against volatility.

Learn why gold prices continue to break records in our article.

Performance of Gold Over the Past Decade

Looking back at the past ten years, gold has delivered a mixed yet meaningful performance. While it’s not as aggressive as stocks or as stable as government bonds, its trajectory tells an interesting story especially for those tracking gold price investing.

From 2015 to 2020, gold saw a strong upward trend, peaking during the pandemic as investors rushed to safety. While there have been dips since then, gold prices in 2025 remain high compared to pre-2010 levels. This reflects long-term confidence in the asset as both a hedge and a portfolio stabilizer.

So, is gold a good investment? If you’re looking for consistent, long-term value and a reliable counterbalance to more volatile holdings like equities or crypto, the answer is yes especially in times of economic uncertainty. It’s not about fast gains it’s about security, diversification, and peace of mind, all of which gold continues to offer in 2025.

Advantages of Investing in Gold in 2025

Portfolio Diversification and Inflation Hedge

In today’s unpredictable financial climate, adding gold to your portfolio can bring much-needed balance. Traditional assets like stocks and bonds tend to fluctuate with market sentiment and economic cycles, but gold often moves differently. That’s why so many investors ask, should I invest in gold especially when inflation creeps in and erodes the value of fiat currencies.

As a non-correlated asset, gold can serve as a stabilizing force, helping to reduce overall risk. In periods of high inflation, gold often maintains or increases in value, making it an ideal hedge against purchasing power loss. So, is gold a good investment? If your goal is to preserve wealth and add protection against economic shocks, gold is one of the most dependable options in 2025.

Tangible Asset with Universal Value

Unlike digital currencies or paper-based assets, gold is physical, finite, and globally recognized. This makes it not only a reliable store of value but also a universally accepted form of wealth. Whether you’re holding coins, bars, or jewelry, gold is tangible something you can physically possess, which offers a psychological layer of security that paper investments can’t match.

That’s why many people wonder, is it worth buying gold in 2025? If you value stability and long-term preservation over short-term speculation, the answer leans strongly toward yes. When you invest in gold, you’re investing in a commodity that transcends borders, economic systems, and political instability. It’s not just valuable, it’s resilient.

Multiple Ways to Invest in Gold

Gone are the days when gold investment meant only stacking bullion in a safe. In 2025, there are several ways to get exposure to gold, each with different risk levels and advantages:

• Physical Gold: Buying gold bars or coins offers direct ownership. It’s ideal for those who want a tangible asset they can store independently.
• Gold ETFs: These exchange-traded funds track the price of gold and are easily bought and sold like stocks, offering liquidity and convenience.
• Mining Stocks: Investing in companies that mine gold can provide leveraged exposure. When gold prices rise, mining stocks often outperform physical gold.
• Gold Futures: For more advanced investors, gold futures investing allows you to speculate on future gold prices. This method carries higher risk and requires a solid understanding of the market.

Each option suits different investment styles and goals, allowing you to tailor your gold exposure based on your comfort with risk and how hands-on you want to be.

Check out our beginner’s guide to investing in gold here.

Disadvantages of Investing in Gold

Lack of Yield and Opportunity Cost

One of the primary disadvantages of investing in gold is that it doesn’t generate income. Unlike stocks that pay dividends or bonds that offer interest, gold simply sits there. While its value may appreciate over time, you won’t earn passive income from holding it. This presents an opportunity cost especially in a high-interest-rate environment, where other investments might deliver more tangible returns.

If you’re heavily focused on income generation or compounding wealth through reinvestment, gold might not play the leading role in your portfolio. It’s more of a preservation tool than a growth engine, and that’s something every investor should weigh carefully.

Price Volatility and Market Timing Risks

Though gold is often viewed as a safe haven, it’s far from immune to price volatility. Just look at the historical charts there have been sharp peaks and equally dramatic dips. If you’re asking, is it good to invest in gold, the answer depends on your ability to tolerate short-term swings and your entry point.

Timing the gold market can be especially tricky. Some investors buy at the peak when fear is high, only to see prices fall and stay flat for extended periods. Gold isn’t a guaranteed ride upward it requires patience, strategy, and sometimes a strong stomach for turbulence.

Storage, Insurance, and Liquidity Issues

Owning physical gold comes with logistical hurdles that many first-time investors overlook. Storage can be a challenge especially if you’re holding larger quantities. Home safes offer limited protection, and bank vaults or professional storage facilities come with additional costs.

Then there’s insurance. Gold is valuable and, unfortunately, a target for theft. Proper insurance coverage is a must, but that too adds to your ongoing investment costs. Liquidity can also be a concern selling physical gold quickly and at market price isn’t always as straightforward as liquidating ETFs or stocks.

Investing in Gold in Canada: A 2025 Perspective

Canadian Gold Dealers and Platforms

Canada has long been recognized as a global leader in gold mining and precious metals trading, making it one of the best countries to buy and store gold. In 2025, there are more ways than ever to get involved in investing in gold in Canada, whether you’re a hands-on investor or prefer digital convenience.

For physical gold, trusted dealers like Kitco, Canadian PMX, and the Royal Canadian Mint offer a wide range of options, including coins, bars, and bullion. If you’re more inclined toward digital investing, platforms like Wealthsimple, Questrade, and TD Direct Investing now allow Canadians to buy gold ETFs or gold mining stocks with just a few clicks.

Whether you’re just getting started or looking to expand an existing portfolio, Canada’s gold investment ecosystem is robust, regulated, and accessible to all investor levels.

Tax and Regulatory Considerations

Before diving in, it’s essential to understand how gold is taxed in Canada. While physical gold (classified as a commodity) is often exempt from sales tax if it meets purity standards, profits made from selling gold whether physical or digital are generally considered capital gains and are taxable under Canadian law.

For example, if you buy gold and sell it later at a profit, you’ll need to report that income in your annual tax return. For gold held in registered accounts like RRSPs or TFSAs, you may be able to defer or avoid some taxes depending on the type of investment.

Explore our guide to investing in Canadian and international gold coins.

FAQs

Should I invest in gold during inflation?

Yes, gold has historically performed well during periods of high inflation. When currencies lose value, gold often maintains or increases in purchasing power. This makes it a popular hedge, especially for Canadians watching the dollar’s real-world buying power erode. That said, while investing in gold can help protect your wealth, it shouldn’t be your only inflation strategy diversification remains key.

Is gold a good investment for retirement?

It can be, if used strategically. Gold doesn’t generate income like dividend stocks or bonds, but it offers stability and acts as a long-term store of value. If you’re looking to reduce risk in your retirement portfolio, a small allocation to gold as an investment can serve as a counterbalance to more volatile assets. Just be mindful of the percentage typically 5–10% of a diversified portfolio is enough.

What is the safest way to invest in gold?

The safest approach depends on your comfort level and investment goals. For beginners, gold ETFs offer exposure to gold prices without the hassle of storage or insurance. If you prefer direct ownership, buying physical gold from reputable dealers and storing it in an insured vault is a strong choice. Want more advanced options? Gold futures investing offers high upside, but it’s best left to experienced traders due to its complexity and risk.

Can I invest in gold with a small budget?

Absolutely. You don’t need thousands of dollars to start. Many online platforms let you buy fractional shares of gold ETFs, or even small quantities of physical gold. Whether you’re putting in $50 or $500, investing in gold on a budget is more accessible than ever especially in Canada, where several fintech platforms make gold investment simple and transparent.

What are the risks of gold futures investing?

Gold futures investing involves contracts to buy or sell gold at a future date for a set price. While the potential for profit is high, so is the risk. Futures are leveraged, meaning a small movement in gold price can lead to big gains or steep losses. They’re not ideal for beginners and require strong knowledge of the market and risk management tools. Proceed only if you understand how margin works and have a clear exit strategy.

Is it worth investing in gold now or waiting?

If you’re investing for the long term, timing the market isn’t as important as you might think. Gold has held its value over centuries not just during good times, but especially during bad ones. So, is it worth buying gold now? If your goal is wealth preservation, hedging against inflation, or portfolio diversification, now is as good a time as any. Waiting for the “perfect” price often means missing out altogether.