4 Gold Investments That Pay Off During a Recession

From Yahoo Finance: 2025-05-31 12:01:00

Gold has surged 83% over the past 18 months due to economic uncertainty, geopolitical turmoil, and speculation. As the economy contracts, some economists predict a recession, potentially driving gold prices even higher. Investors can participate in the gold market through ETFs, mining stocks, or mutual funds that blend physical gold, ETFs, and mining companies.

ETFs are the easiest and most liquid way to invest in gold, trading on the public stock exchange with no commission fees. Physical gold bullion is also an option but requires secure storage and often comes with significant markups. Investing in gold mining companies offers a different risk-reward profile, influenced by factors beyond just the price of gold.

Mutual funds provide a blend of gold, ETFs, and mining companies, offering diversification but potentially higher costs than direct investments in ETFs or mining stocks. Gold is a popular safe-haven asset during times of economic uncertainty, but all investments come with risks. Most financial advisors recommend gold as only a portion of a diversified portfolio to mitigate risk.

Read more: 4 Gold Investments That Pay Off During a Recession