Is Gold a Safe Investment?

Jeremy BiberdorfBy: Jeremy Biberdorf

March 1, 2023March 1, 2023

Gold is arguably the most well-known precious metal. Having been seen as a valuable asset for multiple centuries, many modern investors consider gold to be a smart investment. Historically speaking, gold prices would support this claim!

There are many different ways one can invest in gold, from gold bullion (such as gold coins) to gold stocks and gold ETFs. Whether you want to have the physical gold in your possession or hold gold in one of the various gold-centric mutual funds, you can invest how you’d like if you’re investing in gold.

Of course, just because you can doesn’t mean you should. Like other financial assets, gold has its pros and cons, making it important to consider both before making the investment. Is gold a safe investment? Let’s take a deeper look and find out!

Historical Performance of Gold

Historically speaking, the price of gold has skyrocketed. Based on current prices (as of Feb. 2023), gold prices have increased by 2,171.63% over the last fifty years!

Whereas the overall economy took a turn for the worse back in the 2008 financial crisis, gold hit an all-time (at the time) record high. This is a great example of how the value of gold managed to be immune to the ups and downs of the stock market.

Advantages of Investing in Gold

One of the main benefits of gold is that it’s a relatively secure investment, even during times of uncertainty. However, that’s certainly not its only positive point.

Another advantage of gold is all the different ways and forms you can purchase it in. Purchasing physical metals is a common method. However, you don’t have to limit yourself to physical gold—be it gold bars or coins—to enjoy exposure to gold.

There are dedicated mutual funds and ETFs that will help you make your investment in gold. Another option is gold mining stocks (such as shares in gold mining companies).

Disadvantages of Investing in Gold

While investing in gold can provide many benefits, there are still a few disadvantages you should consider. For starters, the cost of purchasing even an ounce of gold can be prohibitive for some individual investors. Unlike stocks in the stock market or property in a real estate portfolio, gold investments don’t generate any income or dividends.

Additionally, the gold standard era has passed, which means that—although it’s likely that gold will always be in high demand—gold’s value is nonetheless subject to the pull of supply and demand. While it generally proves as a hedge against inflation, this isn’t always the case.

Lastly, you may be at a disadvantage depending on how you’re choosing to invest. One great example of this is gold jewelry. While it’s true that the gold itself is worth something, the value of gold jewelry is largely based on the craftsmanship and intricacy of the jewelry (rather than the fact that it’s made of gold). For this reason, gold jewelry usually isn’t a great investment.

The Best Places to Buy Gold Online

Now that we’ve gone over the various ways to invest in gold (and why you should), let’s take a look at a few places you start investing! Remember to keep an eye on the spot price and compare it to the price of gold that’s listed.

If you’re only planning on using a single dealer then this doesn’t matter as much, but it’s a good idea to shop around if you want to get the best price!

Acre Gold


This online retailer offers a unique way to get your hands on physical gold: financing! Through Acre Gold, you’re able to pay as little as $50 per month toward the purchase of a gold bar. Once you’ve paid for the entire bar, you can have it shipped to you.

Click here to learn more!
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Money Metals Exchange

Money Metals Exchange

MME is a more traditional online dealer that sells a variety of precious metals such as gold and silver. You can either finance or purchase physical gold outright from this platform. If you’re hoping to create a gold IRA, Money metals Exchange can help you with that as well!

Click here to see the latest offerings on Money Metals Exchange!
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Apmex is an online store that sells everything from physical gold bars and other types of precious metals to collector’s coins, jewelry, and even obsolete bank notes! You’ll be able to find pretty much anything you’re looking for on Apmex, and they even offer free shipping for orders valued at more than $199.

Check out the current selection on Apmex here!
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Closing Thoughts

Whether you’re interested in purchasing bullion or shares in gold exchange-traded funds, you’ll have many different ways to invest in gold at your disposal. The metal truly is a great portfolio diversifier, serving as a hedge against inflation for your investment portfolio.

That said, gold prices are always subject to change (just like any other valuable commodities). While stock investments may generate income, gold cannot, so that’s certainly something you’ll want to consider.

Despite that, gold is a great investment for those who have the capital to spare. With plenty of forms to obtain it in and many online stores selling it, there’s never been an easier time to purchase gold. So, is gold a safe investment? We’d say it is.

Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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