Is gold a better short- or long-term investment now? Here’s what experts

In recent years, there’s been an uptick in gold investing interest. In just the past year, gold prices jumped dramatically as investors sought safer places to put their money. This surge came as inflation stayed stubbornly high and geopolitical tensions increased.

Gold’s rapid rise has changed how some investors think about this precious metal. While many still view it as a long-term strategy for preserving wealth, others see opportunities for quick profits. As financial analysts and major banks predict higher gold prices in 2025, more people are questioning traditional approaches.

Right now, is it wise to buy gold for short-term gains or stick to the traditional long-term approach? We turned to three investment professionals for answers. Their insights show that both can work — but your personal goals and risk tolerance determine the best strategy.

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Is gold a better short- or long-term investment now? 

Gold’s track record demonstrates its strength as a long-term investment. From 1971 to the end of 2019, gold delivered average annual returns of 10.6%, according to Brett Elliott, director of marketing at American Precious Metals Exchange (APMEX).

But recent market conditions have opened new possibilities. “The price volatility [lately] has sparked more interest in short-term strategies,” says Brandon Thor, CEO of Thor Metals Group. “Investors who can track market trends and adjust quickly may benefit from this approach.”

Here’s what you should know about both:

The case for (and risks of) short-term gold investing

“Gold tends to remain stable for long periods, but when it begins a rally, it tends to move fast,” explains Elliott. This pattern, combined with predictions of higher market volatility in 2025, could create opportunities to buy low and sell high.

If you’re interested in short-term gold investing, gold exchange-traded funds (ETFs) and mining stocks offer the most accessible entry points, liquidity and the ability to capitalize on price movements quickly. While gold futures are another option, they often require special trading approvals and larger account balances that put them out of reach for many retail investors. The short-term strategy comes with risks, however:

• Price slippage: Not all gold investment options offer ideal trading volumes, meaning you might not get the exact price you want when buying or selling.
• Market volatility: Thor cautions that rapid price swings can be stressful for unprepared investors.
• Tax implications: Henry Yoshida, co-founder and CEO of Rocket Dollar, warns that short-term trading can trigger tax liabilities through capital gains.

Learn more about your current gold investing options here.

The case for (and drawbacks of) long-term gold…