Should your gold investment allocations change in today's economy?

The price of gold crossed $3,400 per ounce last month, creating a rush of interest among investors who were seeking financial security amid today's economic uncertainty. Central banks are also buying the precious metal at record rates, and this institutional buying shows strong confidence in gold's value.

Financial advisors generally advise keeping gold investments to around 10% of your portfolio. But in today's economy, is this conventional allocation still best — or should it change now that the economic climate is shifting? Below, investing professionals share their perspectives on how much gold belongs in your portfolio and what factors to consider when structuring your investments now.

Learn more about your gold investing options today.

Should your gold investment allocations change in today's economy?

Jack Hanney, CEO and senior partner of Patriot Gold Group, a leading gold IRA company, believes allocations should increase at this time. 

"[The traditional allocation] made sense when things were steady … but we're not in those times anymore," Hanney says. So, "[investors might want to] move closer to 20% or even 25% depending on their situation."

On the other hand, Brandon Aversano, CEO of The Alloy Market, recommends that most people maintain the conventional 10% to 15% allocation. More risk-averse investors might benefit from slightly higher percentages.

Ultimately, though, the best gold allocation depends on your financial situation, risk appetite and outlook on economic factors, experts say. As a result, there are situations in which it makes sense to increase your gold allocation — and situations in which it doesn't.

When it makes sense to increase your gold allocation

"[Consider] increasing gold in your portfolio if you have a strong conviction that gold will maintain or increase in value across time," Aversano advises. 

This strategy makes sense if you expect ongoing global tensions, rising inflation or a weaker U.S. dollar.

Hanney suggests a measured approach to increasing your gold exposure. 

"The smart move isn't to panic and go all in overnight," Hanney says. "I recommend dollar-cost averaging. Buy a little over time, especially when the market pulls back."

Ronnie Gillikin, president and CEO of Capital Choice of the Carolinas, a financial planning firm, offers a more tactical perspective. 

"It can make sense to [increase exposure to] gold while it's up and the market is down," Gillikin says. However, he cautions against viewing current high prices as a buying opportunity for long-term growth.

Protect your investment portfolio by adding gold to the mix now.

When it's best to maintain traditional gold allocation levels

"I'd recommend maintaining the gold allocation in your portfolio if you're playing the long game and your portfolio is already diversified," Aversano says. 

With this approach, gold acts as an effective hedge against inflation.

Hanney echoes a similar perspective for certain investors. 

"If [you have] a diversified portfolio with real assets, minimal debt and some good exposure to metals, it can make sense to stay where [you] are," Hanney says. However, he advises regular portfolio reviews since today's markets change fast.

When it makes sense to decrease your gold allocation

Generally, experts see few reasons for reducing gold holdings right now. 

"The only reason to cut gold exposure would be if [you] need liquidity for something urgent," says Hanney. 

Adding to this, Gillikin suggests it could make sense to rebalance and sell some gold while it's high to capture gains.

Key gold investment factors to consider 

Several economic and personal factors should influence your gold investment decisions, according to experts, including:

• Debt levels: Rising national debts weaken currencies and strengthen the case for holding hard assets, including gold.
• Inflation trends: Persistent inflation erodes the value of cash and bonds. Meanwhile, gold usually maintains its purchasing power.
• Currency strength: A weakening dollar often signals higher gold prices. In contrast, a strengthening dollar can put downward pressure on gold.
• Global instability: Sanctions and economic fragmentation historically drive more investors toward gold.
• Your age and time horizon: Wealth protection becomes increasingly important when approaching retirement. If you're in this life stage, it could make sense to increase your physical gold allocation.

Ways to start gold investing today

Once you've determined your ideal allocation, explore three expert-recommended ways to add gold to your portfolio:

• Gold bars and gold coins: "For someone just starting, I always recommend physical gold first," says Hanney. This direct ownership approach gives you tangible assets you can store.
• Gold individual retirement accounts (IRAs): Thinking about retirement? "A gold IRA lets you [keep] physical metals inside a tax-advantaged account," Hanney says.
• Gold exchange-traded funds): These investment vehicles track the price of gold and offer an easy way to gain exposure through regular brokerage accounts without storing physical metal.

The bottom line

As gold prices change in 2025, the ideal allocation depends on personal circumstances. Experts, including Hanney, suggest adjusting your approach based on where you are in life. For example, younger investors might want to stay around 15% while those near retirement might consider 20% or more for enhanced wealth protection.

Before making changes, consult a financial advisor who can offer gold investing advice based on your situation. As Aversano notes, the goal is to "hold enough to protect your wealth, but not so much that missing out on risk asset growth hurts your long-term returns."