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The price of gold broke through $3,400 per ounce for the first time in April and has stayed resilient near those record levels ever since. The precious metal’s staying power reflects investor demand for stability amid mixed economic signals, lingering inflation concerns and ongoing questions about the Federal Reserve’s policy direction.
With September bringing fresh uncertainty about interest rate cuts and global growth prospects, investors want to know: What gold investment options make the most sense right now, and how should they decide where to put their money? We asked industry professionals to weigh in. Here’s what they recommend.
Find out how to add gold to your investment portfolio today.
What gold investment options make the most sense this September? Here’s what experts think
The answer depends on your investment goals and risk appetite, according to Brett Elliott, director of marketing at American Precious Metals Exchange (APMEX).
With that in mind, experts see three gold investment options worth considering this September:
Physical gold, like coins, bars and bullion
“September looks like a favorable month for gold to increase in value,” Brandon Aversano, CEO of precious metals buyer The Alloy Market, says. “I’d recommend investing in physical gold, [such as] bullion or coins, if you can store it safely.”
Physical gold works best if you prioritize stability over growth potential.
“[It’s] a buy and hold asset that preserves wealth and compounds slowly,” says Ben Nadelstein, head of content at gold yield marketplace Monetary Metals.
The main advantage is complete control with tangible ownership, but that comes with responsibilities. You’ll need secure storage, whether at home, in a bank safety deposit box or through a third-party depository. Elliott notes that while storing at home eliminates counterparty risk, it usually involves higher spreads than gold exchange-traded funds (ETFs). This makes physical gold less suitable for investors who need quick access to cash.
Learn more about the many benefits of gold investing today.
Gold ETFs
If physical assets aren’t possible, Aversano suggests investing in gold ETFs. These funds hold gold or gold-related assets, and you can buy and sell shares through your regular brokerage account like any stock.
“Gold ETFs offer liquidity and diversification without the hassle of storing physical gold,” Michael Foguth, founder and president of Michigan-based wealth management firm Foguth Financial Group, says. “For many investors, they’re the most cost-effective way to gain exposure quickly.”
The trade-off is ongoing costs versus convenience. While you avoid storage headaches, you’ll pay annual management fees that can eat into returns. Foguth notes that ETFs don’t deliver yield beyond price appreciation, and short-term price swings can frustrate investors expecting steady returns.
Gold mining stocks
“While more volatile, [gold mining stocks] can outperform in inflationary and rising-gold-price environments,” says Foguth. This investment option appeals to investors willing to accept more risk for potentially higher returns.
The catch is that companies face operational challenges beyond gold’s price movements, making gold stocks trickier to invest in.
“Mines themselves are depreciating assets,” Elliott says. “The moment they begin taking ore out of the ground, the value declines.”
To stay profitable, management must maintain equipment, explore for new deposits and sometimes acquire other mines. Poor decisions in these areas can hurt stock values even when gold prices rise.
These risks make thorough company research critical. Unlike with physical gold, you must assess management quality and business fundamentals — not just gold’s price direction.
How to determine your best gold investment option
Before investing in gold, clarify your portfolio goals. To do that, Foguth encourages asking yourself three questions:
- Do I want gold for stability or growth potential?
- How much liquidity do I need?
- Am I comfortable with short-term volatility for long-term hedge potential?
Your responses will guide your decision. Here’s how:
- If you’re after stability and can lock up money long-term, physical gold makes sense.
- If you need high liquidity, ETFs work better than physical gold, which takes longer to buy and sell.
- If you prioritize growth and are comfortable with short-term volatility, gold mining stocks could work (but research the company first).
For most investors, Foguth suggests keeping gold exposure between 5% and 10% of your total portfolio. This provides diversification benefits without overconcentrating in a single asset class that doesn’t generate income.
The bottom line
Gold has long provided stability during market turbulence. This September presents similar market conditions with potential Fed rate cuts and ongoing inflation worries, making it a relevant time to consider your options.
Rather than trying to time the perfect entry point, experts advise building your position over time. “Dollar cost averaging reduces risk while increasing the odds of generating a positive return for most investors,” Elliott notes. This approach — investing a fixed amount regularly rather than all at once — works whether you choose physical gold, gold ETFs or gold mining stocks.