Why Gold Prices Are Rising in 2025 — and How Much You Should Own in Your Portfolio 

Gold has always carried a certain mystique. It’s ancient, tangible, and universally recognized as valuable. 

 But lately, it’s not just collectors or jewelers paying attention — investors are watching gold climb to record highs, and many are wondering: 

Should I be buying gold right now? 

The short answer: maybe — but only if you understand why you’re buying it and what role it plays in your portfolio. 

Let’s unpack why gold is shining again, when it typically makes sense for investors, and how much is actually appropriate to hold. 

Why Gold Is Rising Right Now 

Gold tends to perform well during times of uncertainty — and there’s plenty of that right now. 

Here’s what’s driving today’s rally: 

• Government gridlock: The recent U.S. government shutdown added a dose of political tension and market anxiety. 

• Interest rate expectations: Investors believe the Federal Reserve may pause or cut rates soon, which often boosts gold prices. 

• Inflation and global tension: Persistent inflation and international conflict continue to push investors toward perceived “safe havens.” 

Gold doesn’t depend on company profits or economic growth. It’s seen as a store of value, something steady when everything else feels shaky. 

When Investors Typically Buy Gold 

Historically, gold attracts attention during specific economic moments: 

1. When inflation is high and cash loses buying power. 

1. When the U.S. dollar weakens relative to other currencies. 

1. When interest rates drop, making bonds less appealing. 

1. When political or global instability rises. 

In other words, gold tends to shine when fear dominates the market. 

But that’s also when investors often make emotional decisions — jumping in after prices have already surged. 

Remember: fear-driven investing rarely pays off. 

How Much Gold Should You Own? 

Gold is not a growth asset. It doesn’t pay dividends or compound like stocks do. Instead, it acts as a stabilizer — a hedge that helps smooth out volatility. 

Most evidence-based advisors recommend allocating 5–10% of your portfolio to gold or precious metals — enough to provide balance without sacrificing long-term growth. 

For example: 

• A $1 million portfolio might include $50,000–$100,000 in gold or a gold-backed ETF. 

• The remaining 90–95% should stay in productive investments — equities, bonds, and some even in real assets that generate income and growth over time. 

This balance allows you to benefit from gold’s stability without missing the compounding opportunities that truly build wealth. 

The Smart Way to Think About Gold 

Gold’s job in your portfolio is simple: reduce risk and increase peace of mind. 

Here’s how to approach it strategically: 

• Diversify, don’t overdo it. Gold can protect, but it won’t outperform stocks long-term. 

• Avoid emotional trades. Don’t buy gold because of headlines or fear — add it intentionally. 

• Rebalance consistently. If gold spikes and becomes a larger slice of your portfolio, trim it back to your target allocation. 

Used correctly, gold acts like portfolio insurance — something you hope not to need, but value when markets wobble. 

Key Takeaway 

Gold’s rise isn’t random — it’s a mirror reflecting investor sentiment. 

 When the world feels uncertain, people seek stability. 

But smart investors understand: gold’s role isn’t to make you rich. It’s to help keep you calm and consistent while the rest of your portfolio does the heavy lifting. 

True wealth isn’t built by reacting to fear. It’s built by staying focused on a long-term, disciplined plan — one that aligns with your values, lifestyle, and goals. 

Final Thought 

If you’re wondering whether gold fits into your overall investment strategy — or how to balance growth and protection as you move into your next phase of life — that’s exactly what we help clients clarify at Fit Wealth. 

Your wealth deserves a plan as intentional as your life. 

About Fit Wealth: 

At Fit Wealth, we help retirees, high earners and those ready to plan for their next stage in life with wealth strategies that align with their lifestyle and long-term goals. 

We specialize in: 

• Personalized financial planning 

• Investment and tax strategy 

• Lifestyle-based retirement planning 

Learn more or schedule a private consultation at fitwealthadvisors.com 

The Fit Wealth Show is brought to you by Plan Group Financial, Inc. (PGF) d/b/a Fit Wealth Advisors. PGF d/b/a Fit Wealth Advisors is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. This presentation has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Past performance is not indicative of future results.