Gold price Oct 20, 2025

If you’re looking for an investment that is not tied directly to the variance of inflation, gold may be the right choice. In general, gold as an asset is typically expected to increase in value over time. One of the most common ways to purchase and manage gold is through a gold IRA, which can serve as a steadying force in a portfolio amid volatile markets. This may also be a good choice for those who want to invest in gold without the challenge of having to make storage arrangements for physical gold bullion.

Historical gold price chart 

Gold is not always a home run investment. In a strong economy, stocks can perform better in the short and long term. From 1971 to 2024, the stock market delivered average annual returns of 10.7%. Gold delivered an average annual return of 7.9% over the same period.

However, during times of economic uncertainty, gold is a solid option as a risk-averse investment. For this reason, some may prefer to think of it as a store of value as opposed to an investment in the way that stocks and bonds are.

What does “spot gold” mean? 

The current gold price reflects the cost of buying or selling gold instantly through an over-the-counter transaction. This metric serves as a useful indicator for investors tracking gold investment demand and market shifts. In essence, an increase in the spot gold price signifies greater market demand for the precious metal. It's important to note that, unlike futures, the spot price pertains to an immediate transaction.  

Contango occurs when the future price exceeds the spot price, a situation often seen with commodities that incur significant storage expenses. Backwardation is the term used when the futures price is less than the spot price.

Numerous elements influence the spot price, causing it to fluctuate continuously. Investors interested in gold must be prepared to manage this degree of price volatility.

What is price spread in gold trading?

The price spread represents the gap between the bid and ask prices for an asset. 

In the realm of gold investments, two crucial terms emerge: the ask price and the bid price. The ask price represents the cost to acquire gold, whereas the bid price signifies the amount for which it can be sold. Notably, bid prices consistently fall below ask prices.

A tighter gap between these two figures indicates a more fluid market. A narrow spread suggests increasing interest in gold.

How to invest in gold 

If your immediate thought when considering gold investments is Scrooge McDuck joyfully plunging into a hoard of coins, you're only partially correct. Although acquiring physical gold in the form of bars, coins, or jewelry is an option, gold is frequently transacted through exchange-traded funds (ETFs).

James Taska, a fee-based financial advisor, said, “There is a great debate as to whether paper gold is as useful as the physical. From a financial advisor’s viewpoint, it is much easier to rebalance a client’s allocation of gold if it is owned as an exchange-traded fund (ETF), and the spread when attempting to buy/sell gold can be quite variable and wide.” 

Some of the most common ways to invest in gold include:

• Gold bars: Often referred to as bullion, this is a popular gold investing method. Offered on a per gram or ounce basis, other qualities including purity, weight, and manufacturer are typically stamped on the face of the bar. Similarly, you may encounter gold rounds.
• Gold coins: Collectible coins, like the American Gold Eagle, are frequently priced above bars of equivalent weight. This premium is due to their status as collector's items with restricted market supply.
• Gold jewelry: Jewelry typically comes with aesthetic, external and subjective value, so the price may be significantly higher than the standard weight value. 
• Gold futures contracts: A futures contract states that the investor will buy a specified amount of gold for a defined price at a future date. Futures allow investors to speculate on the price of gold in the future without needing to handle the actual physical product. 
• Gold funds: Gold funds, including mutual funds and ETFs, hold gold assets. Similar to other ETFs within a stock portfolio, investors can buy shares of gold funds or other mutual fund investments, with their value changing according to the performance of the underlying asset holdings.

Is it a good time to invest in gold?

While it's somewhat subjective to decide if the present moment is more advantageous for investing in gold than other times, employing gold to diversify your current investment holdings can lessen the effects of market fluctuations.

Amidst the present economic climate, gold provides enduring stability during a time of significant stock market volatility. Prices have reached unprecedented levels, increasing by more than 25% since the beginning of 2025, driven by persistent inflation and economic instability. A consensus among many specialists suggests this is an opportune moment to broaden your investment portfolio with gold.

Current precious metals prices by 9:05 a.m. ET on October 20, 2025

Beyond gold, investors frequently consider silver, platinum, and palladium as valuable additions to their investment portfolios. Gold generally exhibits lower volatility compared to silver, which can experience significant price fluctuations within a single day. Furthermore, silver's widespread industrial applications make it more susceptible to shifts in the broader economy.

Platinum and palladium are in the same boat as silver. Investors can use these rare metals as a way to diversify a portfolio, but be wary that there is typically much more fluctuation than with gold.

The takeaway 

The U.S. Economy has been in flux for several years now, and the current period of extended inflation has had a major impact. Gold can serve as an inflationary hedge in an investor’s portfolio. Additionally, because of the variance of acquisition methods, gold can be a relatively easy asset to accumulate based on an investor’s comfort level and interest. Whether you purchase gold as an IRA or as a more active investment account, investing in gold may help achieve both short- and long-term investment objectives.

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