Guide to Investing in Gold in 2025: Strategies, Methods, and Key Considerations

Gold has maintained its position as one of the most sought-after assets for protecting and diversifying wealth. Over the past five decades, its price has experienced extraordinary growth: rising from approximately $35 per ounce to reach $4,200 in the second half of 2025, representing a 120-fold increase. Since 2024, prices have continuously broken historical highs, accumulating gains of over 103% just this year. In this guide, we will explore how to approach this precious metal, which methods to use, and how to select the right tools to get started.

Four ways to expose your capital to gold

There is no single path to participate in the appreciation of gold. Each method has its own characteristics that suit different investor profiles. Here are the main options.

Physical gold: tangibility vs. operational complexity

Many investors choose to acquire gold bars or jewelry, seeking the security provided by a tangible asset. This alternative offers peace of mind from directly owning the metal, without financial intermediaries.

However, while intuitive, it presents significant challenges. Secure storage incurs ongoing costs, selling can be liquidity-challenging, and taxation on gains is often more burdensome. Additionally, the risk of loss or theft is a constant concern for those opting for this route.

The best part of this option: direct access, lasting value, independence from institutions.
The most complicated part: security, custody costs, low liquidity, high tax burden.

Contracts for Difference (CFDs): volatility and democratic access

CFDs allow speculation on price movements without owning the underlying asset. They are agreements between the investor and broker where only the difference in value between opening and closing the contract is exchanged.

This alternative is particularly attractive for beginners with modest capital (less than 1000 USD). Through CFDs, it is possible to access multiple instruments simultaneously: precious metals, currencies, stocks, indices. Leverage amplifies both gains and losses, requiring prudence in risk management.

Strengths: low capital entry, quick access, ability to trade both up and down, instrument diversification.
Weaknesses: leverage amplifies risks, no physical asset ownership, requires operational discipline.

Mining and processing stocks: indirect exposure

Investing in companies whose operations depend on gold is another approach. Companies specializing in extraction and processing show a direct correlation with metal prices. When gold rises, these companies tend to revalue.

However, this path requires rigorous financial analysis. It is necessary to review balance sheets, cash flows, operational capacity, and specific risks of each company. Business performance can diverge from the movement of the commodity, adding complexity.

Advantages: dividend potential, access to growth companies, transparent analysis.
Disadvantages: requires financial expertise, sensitivity to specific corporate factors, additional equity risk.

Exchange-traded funds (ETFs): instant diversification

ETFs group multiple assets into a single basket traded on major exchanges. There are funds dedicated to tracking gold prices or aggregating sector companies.

Investing in ETFs provides immediate diversification without selecting individual assets. However, management decisions are limited to entry and exit points; within the fund, there is little room for tactical moves. Management fees also impact net returns.

Benefits: automatic diversification, high liquidity, easy access, reduced individual risk.
Limitations: limited freedom of movement, fees that erode returns, lack of internal operational decision-making.

Where to start: reliable platforms to operate

Choosing a regulated broker is essential for secure trading. Below are established options in the market.

Mitrade: accessibility and wide range of instruments

Main features:

• Minimum deposit: $20 USD
• Commissions: from zero, competitive spreads
• Withdrawals: one free monthly withdrawal; $5 USD additional fee per extra withdrawal
• Platforms: iOS, Android, web, desktop application

Mitrade operates from Australia with regulation by ASIC, CIMA, and FSC, ensuring international standards in custody and transparency. The platform stands out for its intuitive interface, accessible even for beginners. It allows trading with leverage from 1 to 100 times on gold, providing flexibility according to risk appetite.

With over 5 million global users, it reflects widespread adoption and operational reliability. The variety of deposit methods (Visa, Mastercard, Skrill, Neteller, bank transfers) facilitates access. It offers a free demo account to practice without risk, a valuable tool to familiarize oneself with the platform.

Highlight: extremely low minimum deposit and regular promotions for new users.

Pros and cons of this commodity

Like any investment, gold has attractive aspects and inherent challenges.

Advantages

Safe haven during volatility: during economic and financial crises, gold typically appreciates. In the 2008-2012 crisis, its price increased by over 100%, protecting wealth while other assets collapsed.

Inflation hedge: when the purchasing power of currencies erodes, gold has historically revalued, preserving buying capacity.

Real diversification: adding gold to diversified portfolios reduces overall volatility. It’s rare for all assets to decline simultaneously under the same market conditions.

Disadvantages

Limited returns: gold is not particularly volatile. While other alternatives (technology, cryptocurrencies) offer multiplier potential, this metal advances slowly. The opportunity for higher gains is sacrificed for stability.

Operational costs: secure storage, insurance, transportation, and custody generate ongoing expenses that erode net returns.

Burdensome taxation: selling physical gold with gains incurs transaction taxes. In many jurisdictions, these charges are higher than those applied to forex, stocks, or ETFs.

How to profit even when gold falls

Contrary to popular belief, it is possible to profit if gold prices decline. The technique is known as “short selling” or bearish operation. It involves selling an asset you do not own, expecting to buy it back at a lower price.

Practical example: suppose gold is trading at $1800 and you anticipate a drop to $1700. You short-sell at $1800. When it drops, you buy back at $1700, securing a $100 profit.

Steps to execute a short sale

Step 1: Preliminary analysis

Access your platform and identify if gold shows a bearish trend. Use technical indicators (moving averages, trend lines), and review global economic news. If signals converge toward a decline, the operation is justified.

Step 2: Position setup

Select “sell” or short operation in the order window. Configure:

• Order type (market or pending)
• Quantity in lots (one standard lot = 100 ounces)
• Leverage level according to risk tolerance

Step 3: Capital protection

Set take profit levels (to close with gains) and stop loss (limit loss). Use support and resistance levels and Fibonacci retracements as references. These controls are critical for effective risk management.

Step 4: Execution and monitoring

Confirm the operation on the platform. Continuously monitor the position and stay informed about market developments for necessary adjustments.

Conclusion: deciding if gold fits your strategy

Investing in gold in 2025 requires evaluating personal objectives, time horizon, and risk tolerance. This precious metal offers stability and wealth protection but does not promise spectacular returns. It is ideal as a diversification component in balanced portfolios, especially during periods of economic uncertainty. Starting with small positions, educating oneself through demo accounts, and choosing regulated platforms are essential preliminary steps.