Gold prices inch closer to $3,000: 3 reasons to invest now

After a banner year in 2024, gold prices have been on a relentless climb since the start of this year. Just two months into 2025, the precious metal has already surged past many recent price forecasts and is now closing in on the historic $3,000 per ounce mark — its uphill trajectory fueled by a mix of inflationary pressures, economic issues and strong demand from investors and central banks alike. 

This historic rally represents more than just another uptick in commodity prices, though. It also signals a fundamental shift in how investors are approaching wealth preservation in an increasingly uncertain economic landscape. After all, the surge in gold prices comes at a time when traditional investment vehicles are showing signs of strain, indicating that investors are increasingly turning to the age-old stability of gold to protect their portfolios. 

If you’ve been watching from the sidelines, you may assume that today’s rising gold prices mean you’ve missed the opportunity to invest in this precious metal. However, this might be the perfect time to add gold to your investment portfolio.

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3 reasons to invest in gold now

There are a few reasons why you may want to add gold to your portfolio now that it’s closing in on $3,000 per ounce, including:

This may be the lowest price point to buy in

Despite gold’s impressive run-up to nearly $3,000 per ounce, current price levels may actually represent an attractive entry point for investors. Since January 2025, gold has demonstrated consistent upward momentum, with each minor pullback followed by strong advances. And, there’s a good chance that the current price action is part of a larger bullish trend rather than a temporary spike.

Unlike some of the volatile jumps seen in previous gold rallies, the steady nature of this year’s price growth could indicate a more sustainable uphill trajectory. If that proves true, today’s gold price could be the lowest price point we’ll see for a while. That means buying in early could pay off, just like it did for many investors last year, but if you wait, you could end up paying a lot more in the future.

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Inflation is climbing once again

Inflation, which cooled significantly throughout much of 2024, has once again picked up momentum. In January 2025, the U.S. Consumer Price Index (CPI) rose by 0.5%, marking the fastest increase in over a year. The year-over-year inflation rate now sits at 3.0%, exceeding the Federal Reserve’s target of 2%. And, as inflation accelerates, the purchasing power of traditional currencies declines. Gold, however, has historically maintained its value during inflationary periods, typically appreciating when other assets struggle.

That’s because paper currency can be devalued through monetary policy decisions, but gold’s intrinsic value remains constant. The precious metal’s limited supply and universal recognition as a store of value also make it particularly effective at preserving purchasing power when inflation erodes the value of traditional financial assets. So, if you want to protect your wealth from the erosive effects of rising prices, it makes sense to turn to gold now instead of investing in other, more volatile assets. 

The economic climate is uncertain

The current economic environment is characterized by an unusual degree of uncertainty, driven in large part by proposed policy changes under the new administration. These changes, which could significantly impact things like tax structures, regulatory frameworks and government spending patterns, have created an environment where traditional investment strategies may need reevaluation.

Gold has historically served as a stabilizing force in investment portfolios during periods of economic and political transition. Its value tends to move independently of other asset classes, providing crucial diversification benefits when markets react to policy shifts. And, the precious metal’s role as a safe-haven asset becomes particularly valuable when uncertainty clouds the economic outlook, as it provides a form of insurance against potential market disruptions. So, buying in now makes sense if you’re looking to gain the type of protection gold can offer in today’s unusual economic climate.

The bottom line

With gold prices inching closer to $3,000 per ounce, now may be the ideal time to invest before costs rise even further. The precious metal’s consistent appreciation over the last couple of months suggests that waiting could mean buying at significantly higher prices later in the year. Inflation is also picking up again, eroding the value of cash holdings and increasing the appeal of gold as a hedge. Economic and political uncertainties are driving investors toward safer assets as well, making gold an attractive option for long-term portfolio stability. So, if you’re looking to preserve wealth and diversify your assets, adding gold to your investment strategy now could be a prudent move.