Gold had a standout year in 2024 and this stellar performance is already spilling into 2025, which means now could be a great time to start buying the precious metal.
Gold prices are on the rise, even overshooting most analyst expectations and setting a record in 2024, it has turned the race to $3000 into a looming reality.
Still need convincing on why gold is worth buying today? We look at the top three reasons to buy gold below:
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The Buy Pressure will Continue Driving Prices Up
Central banks, particularly in countries like China, Russia, Turkey, and India have been aggressively buying gold. For example, over the last three years, their purchases have exceeded 1,000t. Going into 2025, the central bank purchases will continue driving up gold prices.
Plus, should the Federal Reserve lower interest rates, retail and institutional investors will turn to Gold ETFs.
A pilot program in China that allows the country’s insurers to buy gold for the first time, which could add up to $27 Billion worth of gold demand to the market will also play a key role in driving up gold prices.
Inflationary Pressure
President Trump has already made good on his election promises of broadening the country’s revenue by imposing tariffs on trading partners. So far, he has imposed tariffs on China, Canada, and Mexico.
These have raised inflationary concerns with the Federal Reserve noting in its minutes from the January meeting that these tariffs may “hinder disinflation process.” Given that gold is seen as the natural hedge against inflation, more tariffs and rising inflation will likely spur further demand for Gold.
The Current Price of Gold May be the Lowest Entry Point
You will also want to buy gold right now because the current valuation may be the best entry point.
The bold claim is informed by the fact that unlike in the past where the path to record prices was abrupt, gold’s path to the current high was gradual.
Additionally, gold has continued uptrending since January 2025, which suggests that the current movement isn’t just a fleeting spike but could be part of a broader, long-term bullish trend.
If this trend holds, today’s price might represent the lowest point we’ll see for some time. Acting now could yield significant rewards, much like it did for the early investors in 2024.
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