Gold has long been known for its enduring strength as a store of value, especially during times of inflation. And, it often serves as a portfolio diversifier and a safe-haven asset amid economic uncertainty. Unsurprisingly, these gold benefits can be particularly attractive for seniors and older adults who are looking to safeguard their retirement savings and reduce their overall risk. 

That appeal has only grown after gold’s remarkable price surge in 2024 and its continued climb so far in 2025 — with prices rising nearly 26% so far this year. While prices have dipped slightly since reaching an all-time high price of $3,441.13 per ounce in April, the precious metal’s value remains historically strong.

Gold’s soaring price presents a tricky choice for seniors who are trying to decide whether to invest in gold. On one hand, the recent surge demonstrates gold’s stability amid global conflicts and economic uncertainty. On the other hand, gold’s current price may leave seniors wondering whether it’s the right time to buy.

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Why seniors should still invest in gold with the price high

Seniors may benefit from putting money into gold if their goal is to protect their portfolio rather than focusing on aggressively growing the value. As Patrick Huey, principal advisor at Victory Independent Planning, points out, gold investment isn’t about chasing significant gains but rather should focus on diversifying and reducing risks. He says his firm allocated a small portion of client portfolios to the SPDR Gold Shares ETF (GLD) at the end of January, not as a reaction to headlines or a bet on big returns, but as a tactical move to manage risk.

“Gold’s true value in a portfolio is not as a ticket to sudden riches, but as a hedge: a way to offset volatility and diversify exposure when the world feels more anxious than assured,” says Huey. “Think of gold as the raincoat in your closet — not something you plan your wardrobe around, but something you’re grateful to have when the skies get stormy.”

That kind of stability can be especially important for retirees and those whose investment timeline may not be long enough to comfortably recover from a sharp downturn. During the 2008 financial crisis, for example, gold rose about 8% while the S&P 500 plummeted more than 38%, according to MacroTrends.

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Why seniors shouldn’t invest in gold with the price high

While gold’s recent rally has sparked renewed interest in the yellow metal, seniors may want to take caution and avoid jumping in too aggressively at today’s elevated prices, experts say. Gold doesn’t produce income like dividends or interest, which may not suit seniors looking for regular cash flow in retirement.

Gold can help cushion your portfolio, but it won’t generate the income many seniors rely on, Jose Diego Gonzalez, a certified investment management analyst at CameronDowning, notes.

“Gold should act as a ballast to your portfolio; it’s meant to be a diversifier and a stabilizer,” says Gonzalez. “Instead of a core holding, a 4% to 9% allocation is typically appropriate. This will help add protection during inflationary periods or market stress, but should not replace income-producing investments.”

Seniors have reason to be cautious of buying at a higher price because of the potential for a pullback. After gold’s big price run in 2024 and 2025, prices could slide if inflation cools or market fears ease. That could leave older investors in a tough spot, especially those with shorter time horizons or who are drawing from their savings.

Alternative ways to invest in gold

One obstacle to gold investing at the moment is its high price. It can be challenging for seniors and older Americans on a fixed budget to meet today’s hefty price per ounce. Fortunately, there are lower-cost options that can make it easier to invest in gold, such as:

• Fractional gold investing: Rather than investing in whole gold bars, coins or other large gold investments, you can purchase fractional gold shares. These smaller positions represent partial ownership of standard gold units in various sizes and the prices are more affordable.
• Dollar-cost averaging: With this gold investing strategy, you buy smaller portions of gold on a set schedule to reduce the risk of investing a large amount when prices are high.
• Gold exchange-traded funds (ETFs): These funds let you invest in gold without owning the physical metal, and you can buy or sell it through the stock market like any regular stock. “For most investors, the best way to gain gold exposure efficiently is through broad, liquid ETFs like GLD, which deliver price exposure without the storage headaches of physical gold,” says Huey.

The bottom line

The above scenarios can help you explore the idea of purchasing gold at a high price and how that can impact seniors. Still, carefully consider the pros and cons of gold investing as well as your long-term goals and risk tolerance before moving forward. Doing so will help you make a decision that benefits you now and in the future.