The right gold investment can potentially boost your portfolio in 2026, experts say.
Anthony Bradshaw/Getty Images
Gold investors have plenty to celebrate this year and just as much to think about for the new year.
Gold returns surpassed many other asset classes with a continued rally this year, and 2026 pricing predictions from major financial players are signaling continued strength. The price of gold today stands at $4,346.76 per ounce. With prices reaching those levels, the margin of error is shrinking, and strategy becomes king. As 2026 approaches, gold investors need a clear plan and that begins with knowing which types may be more advantageous. We spoke with three experts for their insights, broken down below into three specific gold investments worth considering now.
Explore your top gold investing options online here.
3 gold investment types to consider for 2026, according to experts
Not sure which gold investment makes sense for your investing plan next year? Here are three to consider now:
Gold bullion
Some gold investors prefer gold bullion for ease of access, but you may be able to include it as part of your investments through a gold IRA. "The IRS allows for IRAs (and 401(k)s for that matter) to buy, hold, and sell physical gold bullion products (coins, bars, rounds, etc.) that meet the minimum fineness requirement (.995+)," says Scott Maurer, CISP and Vice President of Business Development at Advanta IRA. "American gold eagles are also allowed, even though they do not meet the fineness requirement."
Maurer also shared that an IRA invested in gold is entitled to the same tax advantages as one invested in stocks and other, more familiar publicly-traded securities.
That said, gold bullion is not always a cost-effective investment. In fact, experts we spoke with cautioned against investing in gold bullion due to added costs. "Entry and exit costs for gold and silver bullion and gold coins are prohibitive since trading spreads at a retail level are usually substantial, and guarantees of investment-level purity are uncertain," says Thomas Winmill, portfolio manager of the Midas Fund.
Compare your gold investing options online today.
Gold ETFs
Alternatively, you could invest in gold exchange-traded funds (ETFs).
"You can enter and exit quickly," explains Matthew Weinschenk, CFA, Director of Research and Senior Analyst at Stansberry Research, a MarketWise brand. "They track gold prices perfectly. And they have very low fees, especially compared to the transaction and storage costs of owning physical gold."
Gold mutual funds
In a similar vein to ETFs, gold mutual funds allow you to invest in the asset. However, one of the main differences is that ETFs trade throughout the day, while mutual funds trade once per day.
"If an investor is seeking gold as a hedge, a good vehicle would be a gold-oriented mutual fund," Winmill says. "It's designed to provide immediate diversification within the sector and continuous portfolio oversight, which are normally not practical for an individual investor." Winmill also suggests opting for a gold mining mutual fund as opposed to the direct asset.
How much gold should you have in your portfolio?
Suggestions from our experts differ slightly, and the decision is highly personal. Weinschenk leans toward a conservative allocation between 3% and 10%, while Winmill suggests an allocation of 5% to 15%.
It's important to find the right balance, as the excitement of high returns could derail your strategy by allocating too much to a high-performing asset like gold.
"If you step back and think more strategically, there are two ways you should think about gold: as protection against panic and as a hedge against the declining dollar," says Weinschenk.
"The goal with a gold allocation isn't to make money," Weinschenk says. "Rather, when the stock market draws down 30%, you're only down 20% because gold has soared. It doesn't sound that rewarding, but limiting drawdowns dramatically improves your returns and keeps you in the market."
In addition to factors like age, risk tolerance, temperament and overall assets play a large role for Winmill in determining allocations.
"A smaller allocation is better if volatility would cause the investor to panic and 'cash out' during a market downdraft," Winmill says."For example, a renter with a sizable IRA and no hard assets should probably have a larger allocation to gold, whereas a homeowner with a paid-off mortgage and a modest stock portfolio probably does not need to consider having any gold-oriented asset allocation."
How will you know when it's time to exit?
Gold historically performs well during financial turmoil and inflationary circumstances, making it a go-to measure for protecting investor portfolios during bear markets. Current financial uncertainty leads Weinschenk to suggest gold will continue rising. So you may not want to sell off your gold next year.
"With inflation still a threat, the U.S. national debt growing, and interest rates low and headed lower, all the conditions are in place for a declining dollar… and rising gold."
The bottom line
A whirlwind of factors has combined to create the meteoric rise in gold prices in recent years. However, it shouldn't be the breadwinner in your portfolio. Gold can play a strategic role as you determine your investment strategy for the new year if you position it as a shield. With the right allocations and specific types, gold may protect your portfolio from suffering more substantial losses during economic downturns and geopolitical strife.
Edited by Matt Richardson
