Gold hits a new all-time high. Is it worth buying gold now? How to invest in gold with the lowest cost

Has Gold Prices Soared to New Highs, Is There Still Room for Growth?

Since October 2023, gold prices have entered an upward trend. In just two years, prices have risen from initial levels to break through $2,700 in October 2024, then hit a new high in October 2025, surpassing the $4,200 mark. Such a rally prompts the question: Is now a good time to buy gold? Or should investors wait for a pullback before entering?

According to survey data from Reuters with market analysts, the average annual price of gold in 2025 may remain around $3,400, and by 2026, the average price could further rise to approximately $4,275. This indicates that there is still significant upside potential for gold in the medium to long term, but current prices are already quite high, and blindly chasing the high carries considerable risk.

Why Have Gold Prices Been Continually Reaching New Highs?

Gold itself does not generate interest, and its price fluctuations are fundamentally driven by supply and demand imbalances. When confidence in traditional assets (such as fiat currencies and bonds) declines, investors tend to shift toward safe-haven assets like gold.

First, Central Banks Worldwide Frequently Release Liquidity, Causing Continuous Erosion of Cash Purchasing Power

Starting in 2020, the US implemented unlimited quantitative easing, printing大量 money to rescue the economy. Although domestic liquidity became abundant, inflationary pressures spread globally. In 2022, the Federal Reserve began aggressive rate hikes to curb inflation. These actions led to global debt devaluation, and investor confidence in the US dollar and US Treasuries declined sharply, prompting a shift toward assets that preserve value—making gold the preferred choice.

Second, Competition from Alternative Assets Intensifies, but Gold Remains the First Choice for Hedging

The rise of cryptocurrencies like Bitcoin has indeed diverted some funds; Bitcoin has surpassed $100,000, and the Trump administration even included it in strategic reserve plans. However, for conservative investors, gold’s volatility is much lower than Bitcoin’s, offering greater stability and remaining an essential part of asset allocation.

Third, Adjustments in International Financial Rules Reinforce Gold’s Status

The Basel Accords’ revisions reclassified gold from Tier 3 capital back to Tier 1 capital, making it equivalent to government bonds and cash. This change encourages global banks to increase gold reserves, as gold’s scarcity and rising extraction costs each year make it more valuable for preservation than depreciating paper currencies.

When Is the Best Time to Buy Gold? Technical Analysis Provides the Answer

Gold prices do not rise in a straight line; they tend to fluctuate within an upward channel. The key is to seize these pullback opportunities to enter.

From a technical perspective, gold is still in an uptrend. The Bollinger Bands indicator shows that gold fluctuates within the channel, and when the price touches the lower band, it is an ideal buy signal. This means you don’t need to chase the high; instead, patiently wait for the price to fall to a relatively low level before acting. This approach can reduce costs and allow for better gains during rebounds.

Additionally, increased safe-haven demand and accommodative monetary policies often create windows for gold to rise. Combining market conditions, technical indicators, and economic data to determine entry points is the best way to reduce risk.

Major Comparison of Gold Investment Tools: Which Has the Lowest Cost?

To participate in gold investment, choosing the right tool is crucial.

Physical Gold (Gold Bars, Jewelry)

Appears straightforward, but has large bid-ask spreads, poor liquidity, and storage costs. For individual investors, its investment value is limited and generally not recommended.

Gold Futures and Options

These derivatives have decent liquidity, but futures require high account opening thresholds and large margin requirements, leading to low capital efficiency. Options have nonlinear payoffs, making profits difficult and unsuitable for ordinary investors.

CFD (Contract for Difference)—The Most Suitable Choice for Individual Investors

CFD is a contract linked to physical gold, allowing investors to trade based on gold price movements without owning the physical gold. Its advantages include:

• Easy trading, no need for frequent rollovers, much simpler than futures
• Low spreads and good liquidity
• Flexible leverage, typically from 1:10 to 1:200, allowing investors to choose based on risk tolerance
• 24/7 global trading, unrestricted by location
• Support for stop-loss and take-profit functions to effectively control risk

Compared to futures and options, CFD account opening is easier (usually starting with $50), and commissions are cheaper, making it the most cost-effective way to invest in gold.

Is Gold Worth Buying? The Fundamentals Tell You

Is now a good time to buy gold? The key depends on whether the factors driving gold’s price will continue to do so. The global economic landscape, geopolitical risks, and financial system changes all directly influence gold’s trajectory.

As long as the US dollar faces a crisis of confidence, central banks worldwide continue to inject liquidity, and investors’ demand for safe assets remains strong, gold’s long-term investment value will persist. In the short term, buying during price pullbacks is wise; in the long term, gold as an insurance asset in a diversified portfolio is strategically important.

Whether institutional or individual investors, as long as there is spare capital, they can consider allocating some to gold or gold-related products to hedge against market uncertainties and achieve asset diversification and long-term appreciation. The key is to choose the right investment tools and follow a plan, rather than blindly following trends.