Reasons to Own Gold Now and Why It's a Smart Investment

by Brother Carlton 
02/06/25
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Reasons to Own Gold Now: Why It’s a Smart Investment for the Future

Gold has long been considered a safe-haven asset, prized for its ability to retain value during economic uncertainty. In recent years, its performance has been remarkable, significantly outpacing traditional savings and even some investment markets. With inflation concerns, geopolitical instability, and central banks increasing their gold reserves, many experts predict that gold could reach $3,500 to $4,500 per ounce within the next year or two. This article explores why now is a crucial time to invest in gold and how it has outperformed other financial options over the past five years.

Gold’s Performance Over the Last Five Years

In February 2020, gold was priced at approximately $1,622 per ounce. As of February 2025, gold has surged to around $2,870 per ounce, marking a 77% increase in five years. This appreciation highlights gold’s strength as an asset that preserves and grows wealth even in uncertain times.

Financial experts suggest that due to increasing global demand, ongoing inflation concerns, and central banks stockpiling gold, prices could climb to $3,500–$4,500 per ounce over the next year or two. This projection makes gold an even more attractive option for investors looking to hedge against economic downturns.

NOTE:  I do see the possibility of Gold hitting much higher price levels of say $7500 to $15000 if the U. S. Dollar continues to weaken because of higher inflation.

Investment Comparison: Gold vs. Savings & Stocks

Let’s examine how a $20,000 investment in February 2020 would have performed across different financial vehicles:

1. 
   

   Gold Investment:

   
   
   • February 2020 Price: $1,622 per ounce
   
   
   • Gold Purchased: ~12.33 ounces
   
   
   • February 2025 Price: $2,870 per ounce
   
   
   • Current Value: $35,400 (a gain of $15,400 or 77% growth)
   
   
   
   


2. 
   

   Traditional Savings Account:

   
   
   • Assuming an average interest rate of 0.5% per year, the investment would now be worth only $20,505, barely keeping up with inflation.
   
   
   
   


3. 
   

   Stock Market (S&P 500 ETF - SPY):

   
   
   • The S&P 500 has seen strong gains, with an approximate 90% return over the same period. A $20,000 investment in SPY might now be worth $38,000, slightly outperforming gold. However, the stock market comes with far greater volatility and risk, while gold remains a stable asset.
   
   
   
   

Gold has demonstrated substantial growth with significantly lower volatility than stocks and vastly superior returns compared to cash savings. With the possibility of prices rising to $3,500 or even $4,500 per ounce, gold remains an essential addition to any investment portfolio.

Gold as a Hedge Against Inflation

One of the most important reasons to own gold is its effectiveness as a hedge against inflation. Inflation erodes the purchasing power of fiat currencies, meaning the money in a savings account loses real value over time. Gold, on the other hand, retains its purchasing power and often increases in value during inflationary periods.

For example, in the 1970s inflation crisis, gold skyrocketed from $35 per ounce to over $800. More recently, as inflation soared from 2021 to 2024, gold continued its upward trend, outperforming cash savings and bonds. Given ongoing inflation concerns and global economic instability, gold remains a powerful shield against rising prices.

Why You Should Own Gold Now

1. 
   

   Potential for Higher Prices – Analysts predict gold could reach $3,500–$4,500 per ounce within the next year or two due to high demand and inflation concerns. Investing now positions you ahead of this possible price surge.



2. 
   

   Economic & Geopolitical Uncertainty – Wars, trade tensions, and economic downturns drive investors toward gold as a safe-haven asset. It provides stability when markets are volatile.



3. 
   

   Diversification & Risk Reduction – Unlike stocks and fiat currency, gold moves independently of the market, reducing overall portfolio risk.



4. 
   

   Central Bank Demand – Governments and central banks worldwide are buying gold at record levels, signaling strong long-term value.



5. 
   

   Hedge Against Currency Depreciation – With increasing national debt and potential dollar devaluation, gold protects against the declining purchasing power of money.

Final Thoughts: Is Now the Time to Buy Gold?

With gold up 77% in five years and projections suggesting it could reach $3,500–$4,500 per ounce, investing now could lead to significant gains. While stocks may provide high returns, they also carry risks, and cash savings lose value due to inflation. Gold provides a balanced, stable, and historically proven way to preserve and grow wealth.

If you are looking for a secure investment with strong growth potential, gold remains one of the best options available. With central banks accumulating gold and prices expected to rise, the time to invest is now.

Brother Carlton ministers the gospel to the Los Angeles area. Formerly a Hollywood actor (SAG member) and property cleanup expert, he now spends most of his time studying the scriptures, writing articles, hymns, and poems, and helping small businesses grow more profitably using world class tactics and strategies. If you're a business owner looking to increase revenue and attract more customers, contact me at [email protected]. Put HELP in the subject line. See all his videos on YouTube Brother Carlton.