GoldInvestingIs Gold a Good Investment? What It Does and Doesn't Do
Is gold a good investment? You own it outright and its price record runs back decades, but it pays no income and moves both ways. The facts and costs.
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If you want to own a real, physical asset, gold makes a strong case: you own it outright, the mint states its weight and purity, and its price record runs back decades. On World Bank figures, gold averaged $41 an ounce in 1971 and $3,442 an ounce in 2025. It pays no income and its price moves both ways, so you're buying the metal itself. Past performance does not guarantee future results.
What gold does as an investment
It holds its gold. A one-ounce bullion coin contains one troy ounce no matter who sold it to you or where you take it, and that's the heart of the case.
You own the object, in your name, and its value is the value of the gold inside. The content isn't a matter of trust either. The U.S. Mint says the weight, content and purity of American Eagle gold coins "are guaranteed by the United States Government," and bars carry their weight and fineness stamped on the metal.
Gold also trades everywhere. Spot has a quoted price every trading day, and dealers buy and sell the common coins and bars. It can sit in a retirement account, too: IRS rules allow U.S. gold coins and certain bullion in a self-directed IRA, held by the trustee. And the record is long. The World Bank's yearly gold price series starts in 1960.
What gold won't do as an investment
Go in knowing these. They come with owning any physical metal.
- It pays no income. If you sell for more than you paid, that gain is your return.
- Its price falls as well as rises. Gold's yearly average fell in 16 of the 54 years from 1972 to 2025, rose in 36 and was flat in 2.
- Buying, holding and selling all cost money. The CFTC notes that "A dealer will always sell metal above the spot price and buy it back below the spot price," and storage and insurance can add yearly costs.
- Nobody can promise where the price goes next. Past performance does not guarantee future results.
Gold's price, year by year
These are the World Bank's annual average prices in U.S. dollars per troy ounce. Through mid-2025 the series averages the London afternoon fixing for gold 99.5% fine; from June 2025 it averages daily spot rates. Yearly averages smooth things out, so the highs and lows inside each year were further apart than this shows.
| Year | Average price |
|---|---|
| 1971 | $41 |
| 1975 | $161 |
| 1980 | $608 |
| 1985 | $318 |
| 1990 | $383 |
| 1995 | $384 |
| 2000 | $279 |
| 2005 | $445 |
| 2010 | $1,225 |
| 2012 | $1,670 |
| 2015 | $1,161 |
| 2020 | $1,770 |
| 2024 | $2,388 |
| 2025 | $3,442 |
Past performance does not guarantee future results. Our gold price history tool shows every year, and the live gold price shows today's figure, currently today’s spot price per troy ounce.
Gold price historyEvery month since 1960, with a year-by-year table. What are the pros and cons of investing in gold?
| In its favor | What to accept |
|---|---|
| You own a physical asset outright | It pays no interest or income |
| Weight and purity are stated and checkable | The price moves both ways, sometimes for years |
| Quoted every trading day and widely bought and sold | Dealers sell above spot and buy below it |
| Can be held in a self-directed IRA | Storage, insurance and IRA fees can apply |
| Price record published back to 1960 | No price is guaranteed |
Is gold a good long-term investment?
Its record is a long one. The World Bank annual average went from $41 in 1971 to $3,442 in 2025, with stretches of lower prices along the way. Past performance does not guarantee future results.
Long-term holders tend to say the same thing: they want to own the metal, in hand or in a depository, for as long as they choose. Whether that's you, and how much you buy, is your decision.
Three numbers that tell you if gold is worth it
We'd answer that with three numbers, worked out before you pay anything:
- The gold content of the coin or bar, in troy ounces.
- The premium over spot the dealer charges. Our premium calculator works it out.
- The price the dealer would pay you to buy it back today. As the CFTC puts it, "Each dealer sets its own spread, so it pays to shop around."
Add any storage or account fees on top. If the numbers make sense to you, it's a simple purchase.
How people hold their gold
Most hold it one of three ways: bullion coins such as the American Gold Eagle, gold bars from accredited refiners, or a gold IRA that keeps qualifying coins and bars with a custodian. The full steps are in how to invest in gold.
For a gold IRA, Augusta Precious Metals has a minimum investment of $50,000 and uses salaried, non-commissioned educators. It holds an A+ BBB rating and AAA at BCA, and it's been in business since 2012.
More on whether gold is worth owning
Is gold a good investment right now?
No one can tell you where the price goes next. What you can know is today's spot price (today’s spot price per troy ounce), the premium you'd pay, and what it costs to hold. Decide on those.
Does gold pay dividends or interest?
No. Physical gold pays no income. Your return comes from selling it for more than you paid.
Can gold go down in value?
Yes. Gold’s yearly average fell in 16 of the 54 years from 1972 to 2025, on World Bank figures. Past performance does not guarantee future results.
Is gold a good long-term investment?
Gold averaged $41 an ounce in 1971 and $3,442 in 2025 (World Bank), with years of falling prices in between. Past performance does not guarantee future results.
What are the cons of buying gold?
It pays no income, the price moves both ways, and you pay a premium going in and get less than spot coming out. Storage and insurance can add yearly costs.
Can I keep gold in my IRA?
Yes, in a self-directed IRA. IRS Publication 590-A allows U.S. gold coins and certain gold bullion, held by the IRA trustee or custodian.
Sources and fact-check4 primary sources, checked October 17, 2026
- World Bank: Commodity Markets (Pink Sheet), annual prices, nominal U.S. dollars, updated September 2, 2026
- U.S. Mint: Bullion Coin Programs
- CFTC: 10 Things to Ask Before Buying Physical Gold, Silver, or Other Metals
- IRS: Publication 590-A, Contributions to Individual Retirement Arrangements
We check every figure against the original source: the mint, the regulator, the exchange or the company itself. Spotted something out of date? Tell us.
