America’s new gold rush brings prospectors back to panning
Rising gold prices are causing a new rush as prospectors return to panning for gold.
This is the golden age of gold.
Gold prices have increased 74% in the past year and 201% in five years. Gold is outperforming stocks.
Is it time to add gold to your retirement account?
In addition to its impressive recent performance, gold can act as an effective “hedge” in investment accounts, advisers say. Reason: Gold and stock markets often move in different directions.
“This is a diversifier,” said Stephen Cates, a financial analyst at Bankrate. Gold “tends to have low correlation with stocks and bonds. If you look at just the last year, obviously gold has had tremendous growth. In hindsight, it’s obvious why we would want to own gold.”
Downside to Gold: It doesn’t always perform that well. Adjusted for inflation, gold was worth about the same in late 2024 as it was in early 1980.
“Historically, the S&P 500 has outperformed gold,” said Jeff Farrar, a certified financial planner in Shelton, Connecticut. “That hasn’t been the case since COVID-19, especially in the last 12 to 18 months.”
Economists refer to gold as a “store of value” because it tends to retain its value over time. Gold is in limited supply and has a long shelf life. It cannot be printed like dollars or created out of thin air like cryptocurrencies. These properties tend to protect the country from inflation, changes in currency values, and economic uncertainty.
“When things get tough, gold tends to go up,” Cates says.
U.S. gold prices soared in 2025 due to global trade tensions, weak dollar demand, and strong central bank and investor interest in gold, according to JPMorgan analysis.
Gold reached a historic high of nearly $5,560 per ounce in January 2026, according to Goldprice. Prices have fluctuated since then, with the value of gold hovering below $5,200 an ounce on March 6.
Is now a good time to buy gold?
The golden rule for most investments is to buy low and sell high. Gold is trading at a high price.
But gold is different from other investments. Financial experts say it’s difficult to predict the future price of gold because the future is difficult to predict.
“When people are worried or anxious, gold tends to rise,” Cates said. However, gold prices have been on the decline during the Iran war, which has increased global uncertainty.
According to Investopedia, gold prices are falling because of the strength of the US dollar, among other things, and because gold prices are already rising.
“There is no perfect price for gold,” Cates says. But “gold never runs out, so there is some floor to its price.”
How much gold should the average investor buy?
Investment advisors tend to think of gold as a small player in a larger portfolio, usually dominated by stocks.
“We’re talking about 2% to 5% of the portfolio. It’s not a huge amount,” said Melissa Cox, a certified financial planner in Dallas.
Farrar agreed, saying, “People should consider single-digit gold exposure as part of a diversified portfolio.”
There are several ways to invest in gold directly and indirectly. Here we’ll focus on the options available to the average retirement saver.
gold ETF
Anyone with a brokerage account should be able to invest in gold exchange-traded funds.
Gold ETFs such as SPDR Gold Shares (abbreviated GLD) offer investors a stake in “real gold bars protected by some of the world’s most sophisticated vault systems,” Investopedia reports. Gold ETFs expand investors’ access to gold, “removing traditional hurdles such as storage, transportation and certification,” Investopedia said.
ETFs also operate with minimal management fees compared to other options below.
“I’m leaning more toward gold ETFs because the fees and expenses seem to be much lower,” Cox said.
gold investment trust
Investopedia says that while there are few 401(k) plans that allow investors to buy physical gold, there are plenty of gold-adjacent mutual funds.
Funds such as the Fidelity Select Gold Portfolio invest in the exploration, mining, and processing of gold, rather than gold itself.
One drawback of gold mutual funds, Fidelity notes, is that they are still “paper assets tied to stock market movements rather than real gold.” A decline in the stock market could cause the fund to lose value, which is “exactly the scenario that gold investors are trying to avoid,” Fidelity says.
Gold IRA
Another option for true gold enthusiasts is to open a Gold IRA, a self-directed retirement account that allows owners to hold actual gold.
However, gold IRAs also have drawbacks.
“It’s not that easy to open,” Cates said. “Because you can’t just get a gold-only IRA through a major investment firm.”
Investors are paying a premium to keep their gold safe in a vault, so fees are also high.
“That fee can be 1 to 3 percent per year,” Kates says. “That’s 10 times what you pay for an ETF. And that’s still the case.”
Be careful with taxes
Farrar adds one thing for gold investors to keep in mind. That means the IRS considers gold to be a collectible. Selling a gold investment outside of a tax-advantaged account can be subject to capital gains tax of up to 28%, which is higher than stocks.
