With gold prices recently reaching all-time highs and predictions suggesting it could hit $4,000 per troy ounce, many are left wondering what’s really true about investing in gold.
So, which misconceptions about gold still linger, and what’s fact vs fiction?
Rick Kanda, Managing Director at The Gold Bullion Company, comments on gold misconceptions in 2025:
- Gold is too expensive for the average person
“Gold may feel out of reach for the average person, but you don’t need to buy a large bar to start investing. Physical gold comes in smaller coins and even gram-sized pieces, making it possible to invest gradually. This flexibility means you can own a piece of gold without breaking the bank, while still benefiting from its long-term value as a store of wealth.”
- Gold is difficult to buy, sell, or store
“Buying, selling, and storing gold is simpler than people assume. Here at The Gold Bullion Company, we offer the opportunity for the general public to buy a wide range of gold bars and coins online with payment by card or by bank transfer. Every purchase includes insured delivery within the UK and a ‘buy back’ guarantee when the time comes to liquidate the asset. Low-cost, fully insured storage is also available to customers who choose not to store valuable assets at home.”
- Gold is outdated compared to crypto
“Gold and crypto serve different purposes. Gold is regarded as a stable, physical asset, while crypto is speculative and can fluctuate wildly. Both can be part of a portfolio, but gold traditionally offers long-term reliability that crypto doesn’t.”
- Gold is too risky or volatile
“Gold is often seen as a safe-haven asset, but its price can still fluctuate significantly in the short term, with factors like global economic changes, interest rates, and investor sentiment pushing prices up or down. However, gold investment should not be dependent on whether the market is either surging or falling; you should be more focused on whether your financial situation enables you to do so at that particular time.”
“Gold should always be seen as a long-term investment strategy. The time is right if you have the funds, you are in a financially stable position, and you’re looking for an investment that will store value long-term without thought towards any short-term price fluctuations.”
- Gold prices are controlled by central banks
“Central banks can influence markets by buying or selling large gold reserves, but they don’t control or set gold prices directly. The price of gold is ultimately driven by global market dynamics, and individual ownership isn’t dictated by them.”
- Gold is inflation-proof
“Gold is often used to preserve value during inflationary periods, but it doesn’t guarantee that your purchasing power will keep up. It tends to hold value over the long term, but short-term economic shifts and interest rates can all affect gold’s effectiveness. Owning gold can be part of an inflation strategy, but it shouldn’t be relied on as a stand-alone solution.”
