Gold Prices Rise 25% in 2025 Amid Inflation and Economic Uncertainty

As of 9:10 a.m. Eastern Time on June 16, 2025, the price of gold was trading at $3,415 per ounce. This price remained unchanged from the same time the previous day, marking a significant increase of $1,096 from the same period a year ago. Over the past month, the price of gold has seen a decline of 6.18%, dropping from $3,204 per ounce.

Gold is often seen as a stable investment, particularly during times of economic uncertainty. Unlike stocks, which can be highly volatile, gold tends to maintain its value over time. This makes it an attractive option for investors looking to diversify their portfolios and protect against market fluctuations. One of the most common ways to invest in gold is through a gold IRA, which allows investors to hold physical gold within a retirement account. This can provide a steadying force in a portfolio amid volatile markets and is a good choice for those who want to invest in gold without the challenge of having to make storage arrangements for physical gold bullion.

Historically, gold has not always been a high-performing investment. From 1971 to 2024, the stock market delivered average annual returns of 10.7%, while gold delivered an average annual return of 7.9% over the same period. However, during times of economic uncertainty, gold is a solid option as a risk-averse investment. For this reason, some may prefer to think of it as a store of value as opposed to an investment in the way that stocks and bonds are.

The spot gold price, which is the price to buy or sell gold immediately in an over-the-counter trade, is an effective way for investors to monitor the demands and trends of gold investment at that time. A higher spot gold price indicates higher demand for gold in the marketplace. The spot price is for an immediate sale, unlike futures contracts. When the future price is higher than the spot price, it is called contango, which is common when investing in commodities that have a high storage cost. When the futures price is lower than the spot price, it is called backwardation.

Investing in gold can be done through various methods, including gold bars, coins, jewelry, futures contracts, and funds. Gold bars, often referred to as bullion, are a popular gold investing method. Gold coins, such as the American Gold Eagle coin, are collectible and often sold at a higher price than bars of the same weight because they are viewed as collectibles with limited availability in the marketplace. Gold jewelry typically comes with aesthetic, external, and subjective value, so the price may be significantly higher than the standard weight value. Gold futures contracts allow investors to speculate on the price of gold in the future without needing to handle the actual physical product. Gold funds are mutual funds or ETFs that own gold assets, and their value fluctuates based on the changes in the underlying portfolio of assets.

Ultimately, the decision to invest in gold is subjective and depends on an investor's goals and risk tolerance. However, using gold as a way to diversify an existing portfolio can mitigate the impact of market volatility. In the current economy, gold continues to offer stability in a highly volatile period for the stock market. Prices have risen to all-time highs, with the price rising over 25% since the start of 2025, fueled by ongoing inflation and economic uncertainty. Many experts agree this is a good time to diversify your portfolio with gold.

In addition to gold, other precious metals such as silver, platinum, and palladium are popular choices for investors looking to diversify their portfolios. Silver is typically less volatile than gold, which can have a large price range even within a 24-hour period. Additionally, because silver is a more common resource used across different industries, it is more sensitive to external economic changes. Platinum and palladium are in the same boat as silver. Investors can use these rare metals as a way to diversify a portfolio, but be wary that there is typically much more fluctuation than with gold.

Gold can serve as an inflationary hedge in an investor’s portfolio. Additionally, because of the variance of acquisition methods, gold can be a relatively easy asset to accumulate based on an investor’s comfort level and interest. Whether you purchase gold as an IRA or as a more active investment account, investing in gold may help achieve both short- and long-term investment objectives.