Gold has been one of the most closely watched assets this year, and for good reason. The price of gold has surged to fresh highs multiple times in 2025, the uptick driven, in large part, by a mix of global uncertainty, strong central bank buying and other economic pressures. As a result, investors who bought physical gold earlier this year have already seen meaningful gains, making it one of the standout performers compared to more traditional investments.

But timing any investment is tricky — especially an investment like gold, which has a reputation for short-term price volatility. And, while some potential investors may argue against buying in at today’s prices, considering that gold is expensive right now, others believe it still has room to run as the economic backdrop remains unsettled. That leaves a pressing question to answer: Are gold bars and coins a smart move this October, or should you hold off? That’s what we’ll analyze below.

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Are gold bars and coins a smart investment this October?

The short answer to whether gold bars and coins are a smart investment right now depends largely on your financial goals and risk tolerance. However, there’s a compelling case to be made for including physical gold in your portfolio right now. 

Whether you’re looking at gold bars, coins or other forms of bullion, several economic forces are aligning to make gold an attractive option for investors seeking stability and growth potential. Here are a few key reasons why gold deserves serious consideration this month:

The price of gold continues to break records

Gold has soared to numerous all-time highs throughout 2025, and is currently sitting just under $3,900 per ounce, which would be another record high for the precious metal. When an asset reaches unprecedented price levels like these, conventional wisdom might suggest staying away. But with gold, record highs can actually signal continued momentum rather than an imminent reversal. Analysts are projecting that gold could climb to $4,000 per ounce (or higher) by the end of 2025, suggesting there’s still meaningful upside potential from current levels. 

This matters for two reasons: First, the type of momentum that we’re seeing behind gold right now tends to attract more buyers, which can push prices higher in the short term. Second, gold’s historical pattern shows that strong rallies can last for months or even years when conditions line up, particularly when central banks and governments are driving demand. 

So, if you’re considering physical gold in the form of bars or coins, this environment could provide an opportunity to capitalize on continued price growth. And, while gold is hovering just under the $3,900 price point, this could be the best time to buy in. After all, if the price continues on its upward trajectory, you’ll just end up paying more per ounce when you do eventually invest in the future.

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Inflation is still rising

The latest annual inflation rate for the United States was 2.9% in August 2025, up slightly from 2.7% in July. This rise in inflation demonstrates how price pressures remain stubborn despite efforts to cool the economy. And, core inflation, which excludes volatile food and energy prices, stands at 3.1%, which is still well above the Federal Reserve’s 2% target. 

This persistent and rising inflation creates real problems for anyone who’s holding cash or fixed-income investments, as purchasing power gradually erodes over time amid sticky inflation issues. Gold has historically served as an inflation hedge, though, precisely because the precious metal tends to maintain its value even as paper currencies lose theirs. 

Unlike stocks, which can suffer during inflationary periods, or bonds, which get hammered by rising rates, gold often thrives when traditional investments struggle. The current environment, where inflation refuses to cooperate with central bank targets, is exactly the scenario where gold typically shines brightest, meaning that investing in gold bars and coins could pay off right now.

Portfolio diversification is necessary in today’s landscape

Beyond inflation, today’s broader financial landscape is fraught with risks. Markets remain on edge, geopolitical tensions continue to rattle global trade and many analysts expect heightened volatility heading into the new year. These uncertainties make portfolio diversification more important for investors.

And, that’s where gold bars and coins come in. This type of gold investment can serve as a form of insurance. These physical gold assets are not tied to corporate earnings or government debt, and they can act as a safe harbor during financial shocks. The current government shutdown only underscores this point, serving as a reminder of how quickly political gridlock can spill into markets and erode confidence.

For long-term investors, holding some physical gold can diversify a portfolio that may be heavily weighted toward equities or bonds. While gold doesn’t generate income like stocks or bonds do, its role as a stabilizer during turbulent times has been proven repeatedly.

The bottom line

Gold bars and coins are not a perfect investment. They can be costly to buy and store, and prices can swing dramatically in the short term. But this October, the combination of record-breaking gold prices, persistent inflation and a volatile economic environment makes them worth serious consideration. If you’re evaluating whether to invest in gold this way, remember that the focus should be on finding the right balance. Don’t bet your entire portfolio on gold, but consider whether a measured allocation could give you peace of mind and protection against the risks ahead.