Just because gold is in the news doesn’t mean it deserves a spot in your plan. Let’s take a step back and look long-term.
Gold is having its moment. Prices are up, news outlets can’t stop talking about it, and maybe you’ve even wondered if you’re missing out.
But here’s the thing: before jumping in, it’s smart to ask what role gold really plays in a long-term investment strategy. Especially if you’re still in the wealth-building years of your career.
What Actually Drives the Price of Gold?
Since the U.S. dropped the gold standard back in 1971, gold hasn’t been tied to the dollar. Its price moves based on supply, demand, and investor behavior.
Usually, it spikes when people are nervous – inflation creeping up, markets wobbling, global tensions heating. In those moments, buyers rush in. But those bursts don’t always last, and trying to catch them at the right time is nearly impossible.
That’s why for most investors, particularly high earners who aren’t quite “rich yet”, the smarter move is sticking with strategy, not headlines.
Why We Rarely Recommend Gold
At Babin Wealth, we build plans around principles that actually grow wealth:
- spreading investments across different asset classes
- letting time and compounding do the heavy lifting
- keeping taxes and costs in check
- removing emotion from decision-making
Gold doesn’t really fit here. It doesn’t produce income, it doesn’t pay dividends, and it doesn’t create profits like a business does. In other words, it just sits there.
Yes, there are moments when gold looks like the star of the show – like now. But long-term success isn’t about chasing shiny trends. It’s about consistent investing that builds over decades.
So… Should You Own Any Gold at All?
If you’ve got the basics covered, retirement accounts maxed, emergency fund in place, and a solid, diversified portfolio then sure, a tiny piece (maybe 1–5%) of gold as a hedge isn’t going to hurt.
But if you’re still working toward bigger goals like buying property, scaling a business, or aiming for early retirement, your money is probably better put to work somewhere else.
Bottom line: gold feels “safe” in the moment, but history shows it hasn’t been the steady wealth builder many believe it is.
Final Thoughts: Don’t Chase the Headlines
Markets move up and down. Narratives change. There will always be some “next big thing.”
At Babin Wealth, we help Arizona professionals stay grounded and make confident choices without getting pulled into hype. If you’d like a conversation about your bigger picture, we’re here. No pressure — just a chance to talk through what really makes sense for you.
→ Want more on this topic? We dug deeper into gold’s track record, the emotional traps investors fall into, and smarter alternatives on the podcast.