5 advantages of using gold to build long-term wealth

The price of gold recently hit its apex, coming in at $3,000 per ounce. As economic uncertainty and political tensions have increased, so has the interest in gold investing. Thanks to the new gold price record, some investors have jumped on board looking for short-term gains. 

However, while gold may be a solid short-term investment right now, it has typically been a long-term investment. We spoke with gold experts about how the advantages of gold can help build long-term wealth. Below, we’ll break down five to consider right now.

Start protecting your investments with gold here now.

5 advantages of using gold to build long-term wealth

Not sure if a gold investment makes long-term sense for you? Here are five reasons why it could be a smart move:

Gold has widespread value 

Gold didn’t just recently become a beneficial asset. It has widespread value that transcends borders and cultures. Gold has been used in various ways throughout history to the present day, from gold coins as currency to electronics to jewelry. Its versatility and limited supply continue to cement the value of gold. 

“Gold is a borderless asset. It is not dependent on a single type of investor, so to speak, because it has a broad-based demand,” says Alex Ebkarian, COO and co-founder of Los Angeles-based precious metals dealer, Allegiance Gold.

Start benefiting from a gold investment here now.

Gold maintains value and hedges against inflation

Widespread and stubborn inflation has been pervasive over the last few years as the value of the dollar dwindles. To illustrate, $100 in February 2020 has the same buying power as $123.35 as of February 2025, according to the Bureau of Labor Statistics CPI Inflation Calculator. That represents about a 23% cumulative increase in prices over the last five years. 

As everything continues to be more expensive due to inflation, people are looking for ways to preserve value. That’s where gold comes in. 

“Gold can help you build wealth in several ways due to its unique characteristics as a store of value, as a hedge against inflation and as a diversification tool/strategy,” says Paul Williams, managing director at Solomon Global and a specialist in the supply of physical gold bars and coins. “It has a proven track record of maintaining its purchasing power over time, particularly during periods of high inflation. Historically, as inflation has risen, gold prices have also increased and protected wealth and spending power from erosion.”

Gold provides diversification 

To build long-term wealth, you want to put your money in various asset classes. While you might already have funds invested in the stock market, adding gold can provide further diversification with some unique benefits. 

“Gold is a hard asset and it resists inflation nicely. It’s also one of the few investments in the world that also functions as a currency and carries no counterparty risk, as long as you store it at home,” says Brett Elliott, the director of marketing at American Precious Metals Exchange (APMEX).

Gold investing can balance out some of the risks with stocks and bonds. Investing in gold assets can diversify your portfolio because when there is market volatility, gold typically holds its own as it historically has a low correlation with stocks and bonds. 

Gold is a safe-haven asset

Investors have a lot of questions but not many answers right now. When will the Federal Reserve cut interest rates? How will tariffs affect the stock market and prices?

When uncertainty abounds, many turn to gold as a safe-haven asset. Gold has often been seen as a way to ride out any economic storms and market volatility, as it holds its value. Gold investors can build long-term wealth by using gold as an anchor when facing economic headwinds. 

Gold investments offer versatility 

You don’t necessarily need to buy gold bars and coins if you want to add gold to your portfolio. Various gold investment types are worth exploring, ranging from gold ETFs to gold IRAs and more. Like with any investment, the more you put in, the more you plant the seeds for long-term wealth. 

“You can use gold to build long-term wealth by purchasing mutual fund shares in a gold and special minerals fund. Investing weekly or monthly an affordable amount continuously over a period of time can help provide long-term growth,” says Mark Charnet, founder and CEO of American Prosperity Group, a financial planning group.

Depending on your risk tolerance, goals and time horizon, you can choose a gold investment that aligns with your needs. 

The bottom line 

Investing is one of the primary ways to build long-term wealth. Adding gold to your portfolio can help you reach your goals by maintaining its value despite inflation and market volatility. If you’re interested in gold or precious metal investing, it’s important to understand the risks as well. 

“While gold is a strong asset for diversification, it’s important to be mindful of potential risks. A recession could reduce demand and lower inflation, which might cause the price of gold to stagnate or decline. Investors should weigh this risk when considering gold as part of their portfolio,” suggests David Weild IV, chairman at Dignity Gold, a blockchain development company.

Before you get started, do your research and determine your goals. Look into the different types of gold investments to choose the right option for you.